Green Economy Policy Assessment: Mongolia

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December 2018
Country: 
Mongolia
Document Type: 
Other
Coverage Date: 
2018

The Green Economy Policy Assessment report provides an overview of the current the policy and legal environment of four selected sectors in Mongolia: construction, solid waste management, energy and water management. The report also presents scenarios utilizing the Threshold 21 (T21) framework, jointly developed by the Millennium Institute, Ministry of Finance and Ministry of Environment and Tourism (MET) to test national targets and the effects of investing in a green economy in Mongolia.

The modelling shows that under a green investment scenario average economic growth until 2030 will be 0.43 percentage points higher compared to business-as-usual conditions (leading to a GDP in 2030 that is 7.1% higher compared to business-as-usual). Growth under a green scenario will be also more stable than in a business-as-usual scenario. Furthermore, the model signals the following positive effects by 2030, if 4% of GDP are invested in green development:

  • Jobs increased by 23% (3.3% higher job creation under green scenario, particularly in the solid waste sector where job creation is 15% higher for the green scenario);
  • Poverty will be down to 10% (from 20.4% in 2014);
  • Access to sanitation will be significantly improved to around 85% (while under the business-as-usual scenario it will be around 45%);
  • Access to clean water will be improved to 100% (compared to just 64.5% in a businessas-usual scenario);
  • Emission intensity reduced by 46.6% (compared to an increase of 7.2% under the business-as-usual scenario).

The report outlines a number of policy measures to incentive green investments including, for example, the introduction of a sustainable and stable fiscal system, credits to green and environmental friendly industries that meet requirements, i.e. on grey water use, waste management, as well as measures to promote effective utilization of resources/energy efficiency. It also emphasizes the importance of focusing on increasing foreign direct investment to amplify the effect of local investments in green sectors.

The report is also available in Mongolian

 

Background

The government of Mongolia is focused on ensuring environmentally sustainable and socially inclusive development. This commitment is set out in the country's:

Mongolia, with support from the Partnership for Action on Green Economy (PAGE), is achieving this through:

  1. Evidence-based policy appraisal and economic modelling; and
  2. Sectoral policy support and reform in finance, construction, jobs, trade, waste management, public procurement and education. 

More information on PAGE country work in Mongolia is available at: https://2017.page-annual-report.org/mongolia/