Mongolia

Mongolia’s economic growth has been volatile due to its heavy reliance on the mining sector, which is vulnerable to fluctuations in copper and coal prices and inconsistent demand from China. High unemployment and poor job quality have driven many rural households to migrate to urban areas. Climate change poses a serious threat to sustainable development in Mongolia. Despite ambitious carbon emissions targets, existing fossil fuel subsidies promote coal overconsumption, and investment in renewable energy and green development remains inadequate.

Recognizing the need for a transition to a more inclusive and environmentally friendly economy, Mongolia has enacted several environmental laws and developed a National Green Development Strategy—its most significant development policy since the early 1990s. The government has made notable progress by establishing institutional mechanisms to oversee the Sustainable Development Goals (SDGs) and implementing the Vision 2050 framework for better-coordinated and integrated programmes.

PAGE work in Mongolia commenced in 2013, initially supporting the conception of the National Green Development Policy, which set clear goals to support the country’s green economy transition. PAGE began the phase-out process in Mongolia in 2018, accompanied by the development of a comprehensive sustainability plan to safeguard the progress made over the five-year engagement. Achievements include integrating Inclusive Green Economy (IGE) goals into national planning, enacting reforms in green buildings, green finance, waste management, and sustainable procurement, as well as strengthening institutional capacities across various sectors. As a graduated PAGE country, while completing green recovery work, Mongolia continues to share its lessons and best practices, particularly in sustainable finance, to help replicate its achievements on a global scale.