Mongolia is actively seeking $11 billion in green finance to fuel its transition towards a greener and more sustainable economy, according to the country's Minister of Environment and Tourism, Bat-Erdene Bat-Ulzii. Currently heavily reliant on fossil fuels, mining, and livestock farming, Mongolia faces challenges such as land degradation, limited water resources, and overgrazing. The nation aims to decarbonize its economy and promote environmentally-friendly businesses with advanced technology.
Bat-Ulzii emphasized the importance of international cooperation and partnerships to support Mongolia's environmental efforts and contribute to global environmental improvements. The country acknowledges its role as a victim of global climate change and called for a strengthened environmental compensation mechanism with more options. However, Bat-Ulzii expressed his skepticism about the effectiveness of the yet-to-be-operational loss and damage fund to provide substantial support to Mongolia due to potential high criteria and slow financial delivery.
Mongolia has set ambitious goals to increase its renewable electricity capacity, including hydropower, solar, and wind, to 30% by 2030 as a share of the total electricity generation capacity. Currently, it has already achieved a portion of 27%, considering projects in the construction stage. Furthermore, Mongolia is in the midst of transforming its livestock farming sector since it currently exceeds the theoretical pasture capacity with 71 million livestock animals, compared to a sustainable capacity of 25 million.
The need for $11 billion in green finance highlights Mongolia's commitment to transition to a more sustainable and low-carbon economy. The funding will support initiatives to reduce reliance on fossil fuels, develop renewable energy sources, and address environmental challenges. Securing financial support is crucial for Mongolia to phase down or phase out fossil fuels effectively. The country would require more financial solutions and a guarantee of timely delivery to support such a transition.
Mongolia's participation in the COP28 summit seeks to emphasize the urgency of addressing climate change. The country believes that the conference should not merely be symbolic but should offer practical solutions to support countries in need. The agreement to phase down or phase out fossil fuels will be highly influenced by the availability of financial support and suitable mechanisms for its delivery.
In conclusion, Mongolia is determined to decarbonize its economy and address environmental challenges through sustainable development and a greener approach. With a pressing need for $11 billion in green finance, the country seeks international cooperation and financial solutions to support its transition and contribute to global environmental improvement.