PROMOTION OF GREEN ECONOMY IN MONGOLIA

S. ALTANTSETSEGPAGE COORDINATOR

FOR MONGOLIA

Source: T. Bulgan, Ministry of Environment, MongoliaHigh Level Meeting, 24 November 2016

1 =7 times more energy compared to world average

7 times more materials compared to average of Asia and the Pacific

MONGOLIA’S SITUATION

17 kgs

Mongolia

9 kgs

Vietnam

6 kgs

China

4 kgs

India

2 kgs

Fiji

0,3 kgs

Japan

>

Outdated technology and technique,

inefficient consumption. 7 times more materials compared to average in

the region

Environmental pollution including air, soil and water, desertification

Poverty rate was reduced to 21,6% in

2014 , however difference in rural and urban areas

and income disparity

Vulnerability to climate change. 3

times higher warming compared to world

average

Dependance of economy on

environment or silo sector, export 88%

in 2015

MONGOLIA SUSTAINABLE

DEVELOPMENT VISION 2030 (2016)

17 GOALS 169

TARGETS

GREEN DEVELOPMENT POLICY OF MONGOLIA (2014)

SDGS, NGDP AND SDV OF MONGOLIA

15 AREAS AND 44 OBJECTIVES

6 GOALS, 52 STRATEGIES, 255 ACTIONS

PARLIAMENT APPROVED PARIS

AGREEMENT SEP. 2016

PARIS AGREEMENT ON UN FRAMEWORK

CONVENTION ON CLIMATE CHANGE

Goal of the Green Development Policy is to advance Mongolia’s national development in an environmentally sustainable manner, building the conditions for future generations to benefit and gain in the long term and to ensure environmental sustainability through creation of growth based on green development concepts and

through citizens’ participation and inclusiveness.1. Promote

resource efficient, low carbon

production and consumption with

emphasis on waste reduction

2. Maintain ecosystem balance

and reduce environmental

degradation while intensifying

reclamation activities and environmental

protection3.Promote

investment in environmental

protection, human development and clean technology and leverage tax,

credit and incentive mechanisms to finance green

economy

4. Promote green jobs, reduce poverty and promote green

lifestyle

5. Make education, science and

technology and innovation

accelerators of green development by

promoting environmentally

adapted .lifestyle and cultural values

6. Plan and implement human

settlement adapted to climate change,

and natural resources carrying

capacity

6 Strategic objectives

Period of implementation

Phase 1

2014-2020

Phase 2 2021-2030Action plan with

255 activitiesNecessary financial

resources:

17 trillion MNT

GREEN DEVELOPMENT POLICY OF MONGOLIA

GREEN DEVELOPMENT POLICY OF MONGOLIA

Share of the agriculture and manufacturing sector in total GDP

Percentage of greening spaces in Ulaanbaatar and other settlement areas

Poverty level

Percentage of population connected to improved sanitation facilities

Percentage of population that has access to safe drinking water

Share of forest area

Increased investments in environmental protection and restoration

Share of protected areas

Share of green procurement in total government procurement

Share of expenditures for science and technology research in total GDP

Share of expenditures for green development in total GDP

Share of waste recycling

Reduction of building heat loss

Share of renewable energy in total installed capacity of energy production

22.5

3.14

27.4

33.2

72.6

8

17.4

0.8

0.5

15.7

4.3

28.0

15.0

24.0

40.0

80.0

8.5

20.0

25.0

20.0

2.0

2.0

20.0

20.0

20.0

30.0

30.0

15.0

60.0

90.0

9.0

30.0

30.0

30.0

3.0

3.0

40.0

40.0

30.0

2030 2020 2013

PAGE SUPPORT FOR MONGOLIA

• Joined PAGE in 2013• PAGE lead ministry: Ministry of Environment and Tourism• Focal point: Director of Department of GDPP• Technical inter-ministerial PAGE Committee• National PAGE Coordinator in Mongolia

PAGE SUPPORT FOR MONGOLIA

Green Economy Modelling and Policy Assessment

Green Economy Indicators and Green Jobs

Green Economy Learning

Waste Management

Green School Building

Sustainable Public Procurement

Sustainable Finance and Green Credit Fund

PAGE SUPPORT-WHY GREEN BUILDING?

More than half of Ulaanbaatar’s residents live in ger districts many of whom without access to basic public services like water, sewage systems, and central heating. The pollution is bad in winter time.Risks to natural disasters are high.

Need for greening construction sector

Over the last 3 years the size of residential buildings increases by 30% so does demand for energy

Building heat loss is very high. We heat 3 mln m2 space by using the energy that can be used for heating 10.5 mln m2 spaceWaste from construction on average 188,512 tonnes a year

PAGE SUPPORT-WHY GREEN BUILDING?

Need for greening construction sector High opportunities in the construction sector of Mongolia

• Increasing demand for apartments due to urbanisation and migration to city

• Long period for heating (8 months) • High energy loss (up to 60% ) • Need for development of new settlement areas near UB • Re-planning and re-development of ger areas• Community initiative for land planning and development

PAGE SUPPORT-WHY GREEN BUILDING?

The country will introduce appropriate rating system for green building, energy, technology, standards and implement these methods to develop and reduce heat loss through building by 20 percent in 2020 and 40 percent in 2030; increase the share of renewable energy to 20 percent in 2020, and reach 30 percent in 2030.

Green development policy strategy in the sector

PAGE SUPPORT-WHY GREEN BUILDING?

• Green school building design” for Secondary School No 122.

• The school has a capacity of 640 children seats, but now over 1200 children attend the school.

When developing building design and architecture planning, we had a vision of "Children’s Academic House," a concept of modern school building development trends

• child-friendly, • healthy, • safe and comfortable learning environment, • free space planning or resting area (recreational

area), • direct access glass wall from recreational areas

to sports center, • spacious planning with maximum direct sunlight

on tunnels and open spaces. Myagmar Uyanga, Director of NAP LLC

SUSTAINABLE PUBLIC PROCUREMENT

• You can spend your own money on yourself. When you do that, you try to get the most for your money.

• You can spend your own money on somebody else. Then I’m not so careful about the content of the present, but I’m very careful about the cost.

• I can spend somebody else’s money on myself. If I spend somebody else’s money on myself, then I’m sure going to have a good lunch!

• I can spend somebody else’s money on somebody else. If I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get.

Milton Friedman on the four ways you can spend money

SUSTAINABLE PUBLIC PROCUREMENT

Sustainable Public Procurement

Implementation Status Assessment

Legal Review

Sustainable Public Procurement Policy and Action Plan

Prioritization Market Analysis

SUSTAINABLE PUBLIC PROCUREMENT

2006 2007 2008 2009 2010 2011 2012 2013 20140

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

172,100

509,094

759,506

314,440

1,403,958

850,464

1,583,862

1,663,720

1,046,332

Public Procurement in Mongolia

Procurement in million tugriks

56 COUNTRIES WITH A MINISTRY/GOVERNMENT THAT HAS ADOPTED A SPP POLICY

43 identified through UNEP survey + 13 through additional desktop research

57. Mongolia

0

Renewable energy

Waste recycling

Environment-friendly technology

Land rehabilitation

Forestry entity

Hydrological entity

Sewerage

Organic production

4276GREEN

ENTITIES

1708 (40%)projects

Total projectsTOTAL BUSINESS ENTITIES

SUSTAINABLE FINANCING-DEMAND FOR GREEN CREDIT

857 2.2

302 2

189 1.6

151 1.9

142 1.9

32 2.0

19 1.6

16 2.0

Total number

of projects

Per entity

Introduce new products or

services to the market

Establish new branch and plant

Purchase or construct building

Renew equipment and

technology

56%

17%

16%

10%

1%

Production of products and

services for own use

TYPES OF INEVSTMENT

INVESTMENT NEEDED

80.4

TOTAL BUSINES

S ENTITIES

(for next 5 years: 2017-2021)

ENVIRONMENTAL ENTITIES

19.8

(25%)Trillion MNT

Renewable energy 0.8 (4%)

Waste management

1.0 (5%)

Environment-friendly technology

16.2 (82%)

Renewable energy 0.6 (3%)

Forestry entity0.5 (2.7%)

Sewerage 0.3 (1.4%)

Hydrological entity 0.2 (1.0%)

Organic production 0.2 (1.0%)

Mining and quarrying 5.6 (9%)

Electricity production and distribution 2.2 (3.6%)

Manufacturing 0.9 (1.5%)

Whole and retail trade

0.8 (1.3%)

Agriculture 0.7 (1.2%)

Hotels and restaurants 0.4 (0.7%)

trillion MNT NON ENVIRONMENTA

L ENTITIES

60.7(75%)

Trillion MNT

Transportation, storage, communication

15.0 (25%)

Construction 34.9

(58%)

PAGE SUCCESS IN MONGOLIA

• PAGE workstreams are aligned with SDGs Agenda 2030 • PAGE workstreams are aligned with national development

policies (GDP, SDV) and its actions have demonstrated substantial results and serve as a best practice in many areas.

• PAGE has established close Government relations by bringing ministries together. PAGE Inter-ministerial Technical Committee composes of Directors of Policy and Planning at 11 ministries and 2 agencies.

• PAGE has been recognized for its affiliation to UN system and brings together the value and expertise of participating UN agencies in addressing development challenges and bring opportunities for learning and sharing good practices and knowledge

PAGE SUCCESS IN MONGOLIA

• PAGE brings diverse stakeholders and has built partnership with Chamber of Commerce and Industry, Mongolian Bankers Association, Economic policy and competitiveness center, the National University of Mongolia, and research and training institutions.

• Provides a platform to bring many projects by many agencies including Switch Asia, and PEI and further joint initiatives by development partners including IFC, GGGI and so on.

• Upscaling of PAGE initiatives by the Government and development partners

LEARNING EXPERIENCE AND A WAY FORWARD

• Government of Mongolia finds broad based partnerships such as PAGE necessary for integrating social, economic and environmental consideration in national sustainable development planning and advancing 2030 Agenda at national level

• To sustain PAGE success it is necessary to build broad partnership platform.

• For achieving such significant and lasting impacts there is a need to redesign current PAGE workstreams and shift to a longer-term program approach.

THANK YOU