The Green Economy Barometer 2018

Ulaanbaatar, Mongolia 2018 www.greeneconomycoalition.org

Funded by the European Union Green Economy Barometer 2018 Mongolia

May 2018

Economic Policy & Competitiveness Research Centre 29 Prime Minister A.Amar St, , Mongolia

Twitter: @UrsulduhChadvar Facebook: ECRC Mongolia www.ecrc.mn

Green Economy Coalition 80-86 Grays Inn Rd, London, WC1X 8NH, United Kingdom

Twitter: @GECoalition Facebook: GreenEconomyCoalition www.greeneconomycoalition.org

This publication has been produced with the assistance of the European Union, DCI- ENV/2016/372-847. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union. Photo: Bayar Balgantseren About the organisations

This report has been produced for the Green The Green Economy Coalition (GEC) is the Economy Coalition by the Economic Policy and world’s largest civil society movement for Competitiveness Research Centre (EPCRC). green and fair economies. Our 50+ members represent poor people, workers, environmental Contents As a national think tank the Economic Policy organisations, faith groups and small businesses and Competitiveness Research Center (EPCRC) as well as international institutions. Together, we aims to conduct in-depth research and reporting are inspiring a movement for change from the Executive Summary: A golden opportunity for green economy 4 that help build a competitive and sustainable ground. Overview of the Mongolian Economy 5 Mongolia using globally-accepted research methodologies. The EPCRC is committed For more information, please see Geography 5 to delivering factual knowledge about the greeneconomycoalition.org, or contact Stuart Population 5 Mongolian economy and competitiveness both Worsley: stuart.worsley@greeneconomycoalition. Mongolia’s key challenges 8 domestically and internationally by producing org Increasing Urbanisation 8 reliable sources of information. This publication has been produced with Air Pollution 8 The EPCRC leads the Green Economy Coalition the assistance of the European Union, DCI- Land degradation and desertification 9 Mongolian hub, an ongoing initiative to accelerate ENV/2016/372-847. The contents of this Water scarcity 9 a regional transition to a green economy. For publication are the sole responsibility of the Status of the transition 10 more information, please see www.ecrc.mn authors and can in no way be taken to reflect the International commitment and advocacy 10 views of the European Union. National agenda and roadmaps 10 Subnational Interest 11 Green Economy Indicators 12 Sustainable Development Goals 12 Global Green Economy Index 13 Reforming financial systems 14 Green Financing in Mongolia 14 Social development 15 Green Sectors 15 Green Jobs 15 Inequalities and poverty 16 Mongolia’s transition to a green economy: Where do we stand? 17

www.greeneconomycoalition.org 5 EXECUTIVE SUMMARY GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 OVERVIEW OF THE MONGOLIAN ECONOMY

Executive Summary Overview of the Mongolian Economy

A golden opportunity for green economy Geography Mongolian weather consists of long of the population live in urban areas, cold winters and short summers. and as of 2016, 46.2% of the total Mongolia is the world’s 18th largest Temperatures in the capital city, population, or nearly 1.5 million For the first time, new research has quantified the opportunities of the green country by land mass, covering an Ulaanbataar fall below -40° in people, resided in Ulaanbaatar. economy in Mongolia. Legislative commitment and investment in sustainable, area of approximately 1.6 million winter, making it the coldest capital The “Poverty profile 2016” study inclusive economic practice could have a transformative effect by 2030. But is the square kilometres, and the world’s city in the world. Despite the harsh done by the National Statistical country ready to make the commitment to a sustainable future? second largest landlocked country winters, Mongolia is known as the Office showed that poverty in (positioned between Russia and land of the blue sky, with an average Mongolia increased by 8% in 2015 China). of 3,000 hours of sunshine annually. as the poverty headcount reached 907,500 people meaning that This paper, produced by Mongolian Mongolia’s mining industry drove The EPCRC’s 2017 Green Policy Mongolia is a resource-rich country, Population nearly 30% of the population are economic think tank the Economic explosive economic growth in the Assessment Report suggests that ranking 7th in global resources with considered as poor. In other words, Policy and Competitiveness early 21st century. But over the in the long run, supporting green around 1,170 known deposits and Mongolia has a population of around 30 people out 100 cannot afford to Research Center (EPCRC), lays out last few years a slump in global economic planning will offer a more over 10,000 known instances of 80 3.1 million people, and is one of the buy necessary food and non-food the potential benefits of embracing commodity prices has caused an sustainable path for the future. different types of minerals. Coal, most sparsely populated countries items.1 a sustable future for Mongolia. economic downturn, highlighting the copper, gold, silver and uranium in the world, with an average fragility of Mongolia’s progress to The modelling found that if 4% are the main abundant minerals, population density of 1.8 people per 1 National Statistics Office of Mongolia, Commiting to the green economy date, and the need to diversify away of GDP were invested for green according to the Mineral Resource square kilometer. However, 52.7% Poverty Profile 2016 would end the country’s precarious from mineral exports as the main development: Authority of Mongolia. dependence on the volatile boom driver of economic growth. • Economic growth will be more / bust cycles of commodity-led sustainable and less volatile In addition to mineral wealth, Temperatures in Ulaanbataar growth. It would boost employment In 2017, the International Monetary Mongolia has a long tradition of by 5% by 2030. Per capita GDP Fund (IMF) approved a financing • The unemployment rate will raising livestock. In 2016 the total decrease by 2% by 2030; fall below -40° in winter, making it would be up by a third in real terms, package of USD 5.5 billion, designed number of livestock in Mongolia while poverty would be cut by an to lay the foundation for sustainable, • Real GDP per capita will grow by stood at 61.5 million. the coldest capital city in the world. additional 2%, and greenhouse gas inclusive growth and end the a third, reaching MNT 3.1 million emissions slashed by 17%. commodity-led boom / bust cycles (USD 1,297) by 2030 of the past. To achieve these goals, • The poverty rate will fall to 10% But is Mongolia ready to fulfil its however, requires more than just by 2030 (down from 21.6% in potential as a future green economy finance. 2014 champion? This report – a shortened • Green-house gas emissions per Faced with poverty, inequality, summary of the 2018 Mongolian unit of GDP will be reduced by Green Economy Barometer, serious environmental challenges 17%. produced with the support of the and a constrained economy, Green Economy Coalition and there is only one solution that can But how is the transition shaping the European Union - tracks the tackle all these issues: a strategic up? This report lays out Mongolia’s transition, celebrates success and commitment to the green and fair progress so far, and considers next identifies opportunities for action. economy. Happily, the prospects are steps for the country. bright. There is only one solution that can tackle all these issues: a strategic commitment to the fair and green economy

www.greeneconomycoalition.org www.greeneconomycoalition.org 6 Flickr Schofield, Yuki credit: Photo 7 OVERVIEW OF THE MONGOLIAN ECONOMY GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 OVERVIEW OF THE MONGOLIAN ECONOMY

Table 1: Poverty levels in Mongolia’s regions commodity prices, it is anticipated that the Mongolian economy will stabilize in the coming years. However, it is important that Mongolia implements sustainable economic diversification policies and economic growth strategies.

The Green Policy Assessment Report 2017 authored by the EPCRC suggests that in the long run, supporting green economic growth would offer a more sustainable path for Mongolia going forward. Source: National Statistics Office of Mongolia The report presents scenarios utilizing the Threshold 21 (T21) framework jointly developed by the Millennium Institute, the Mongolian Ministry of Finance and Ministry of Environment and Tourism to test the effects of investing in a green economy in Mongolia. volatile commodity prices • The poverty rate will fall to 10% The modelling found that if 4% of by 2030 (down from 21.6% in GDP was to be invested for green • Employment will increase by 2014); and development: 5.23% by 2030; • Green-house gas emissions will WTable 1 shows poverty levels condition of the economy, in 2017, The purpose of this package is to • Economic growth will be • Real GDP per capita will reach be reduced by 17%. 2 in the regions: Khangai, Western, the International Monetary Fund lay the foundation for sustainable, sustainable and more MNT 3,1 million by 2030 (up Eastern, Central and Ulaanbaatar. (IMF) approved a financing package inclusive growth in the future and consistent over the long term, from MNT 2.1 million in 2014);

Poverty levels in Ulaanbaatar and totaling approximately USD 5.5 end the boom-bust cycles of the with less dependency on 2 EPCRC (2017), Green Economy Policy the Central region are the lowest, billion. past. With IMF support and a rise in Assessment Report of Mongolia, p.62-64 with poverty levels in the Eastern region being the highest. Table 2:

Economy

Despite having high growth in recent years due to global commodity price booms, since 2013 economic growth has been falling due to declining commodity prices. As can be seen in Table 2, in 2011 economic growth hit 17%, before falling to only 1% in 2016.

Following the deteriorating

Source: National Statistics Office of Mongolia

8 www.greeneconomycoalition.org Photo credit: ILO Asia Pacific, Flickr ILO credit: Photo MONGOLIA’S KEY CHALLENGES GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 MONGOLIA’S KEY CHALLENGES

The Mongolian steppe is one of the world’s largest Mongolia’s key challenges remaining grassland ecosystems, but in recent years

Increasing Urbanisation domestic animals to harsh weather eases, immune system disorders has begun to face serious degradation conditions such as “dzud” (a natural and cancerous diseases. The PM Large-scale migration from rural disaster where thick snow and ice 2.5 levels in the city are routinely to urban areas began in 1990. The cover stop animals from reaching substantially higher than WHO Air coal, wood and other waste mate- population of Ulaanbaatar grew fodder, causing livestock to die of Quality Standards, with an average rials for cooking and heating which from around 0.6 million in 1996 to starvation) migrate from rural to level of 75. contributes to the severity of air 1.6 million in 2016, an increase of urban areas. pollution in winter. Fortunately, around 165% in two decades. Sources of air pollution include summer air pollution is much lower Roughly 20% of Mongolia’s popula- dust from the desert and unpaved than in winter. As more people move to the city, tion have migrated to the city in the roads, coal power plants, vehicles, problems such as traffic conges- last three decades. but particularly stoves and boilers The other urban areas of Mongolia, tion, air pollution and inadequate in the extensive ger (traditional such as the second and third larg- infrastructure have arisen. Mongolian nomadic tent) districts. est cities and and Air Pollution Former herders move from rural to provincial centers are following the The cold weather and the lack of urban areas bringing their own gers same path of Ulaanbaatar, and the unemployment in rural areas are The growing air pollution of Ulaan- and settle on the outskirts of the air pollution problem in those cities key drivers behind the increasing baatar is a key factor affecting the city. is also growing year by year. migration problem. health of the population, in particu- lar the physical growth of children, Since people who live in ger areas This issue has attracted consider- Former herders who lost their respiratory and cardiovascular dis- don’t have any access to basic city able public attention in Mongolia, infrastructure systems, they have and public frustration at low air to live without piped-water, sanita- quality is a growing political issue Roughly 20% of Mongolia’s popu- tion and central heating systems. for the government. Photo credit: Iliker Ender, Flickr lation have migrated to Ulaanbaatar in As a result, hundreds of thousands of families in the ger districts burn Land degradation and As a direct result of climate change, the last three decades alone desertification hundreds of Mongolia’s lakes and rivers The Mongolian steppe is one of the are drying up world’s largest remaining grass- land ecosystems. Unfortunately, in desertification are due to climate regions, which are more inaccessible recent years it has begun to face change, over-grazing, or both. than the drier central and southern serious degradation. part. According to a report released by the Asian Development Bank in The Ministry of Environment and Water scarcity 2014, Mongolia has a high reliance Green Development (MEGD) pub- on groundwater resources which lished a desertification atlas show- As a result of climate change, accounted for 80 percent of all ing that 77.8 per cent of land has hundreds of Mongolia’s lakes and freshwater consumed in 2010. been affected by desertification to rivers are drying up, and there is a some degree, while 10 per cent of significant desertification of land, In addition to concerns about the Photo credit: Einar Fredriksen, Flickr land is considered highly vulnerable especially in the southern Gobi volume of water available for con- to degradation, an increase of 2-3 desert regions, where most mining sumption, there are also emerging per cent since 2006. resources are located. concerns about the quality of water available due to increased livestock However it is unknown whether the Mongolia’s surface water resources raising, mining and urbanization. reasons behind degradation and are concentrated in the northern

10 www.greeneconomycoalition.org 11 STATUS OF THE TRANSITION GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 STATUS OF THE TRANSITION

tion, MEGDT, Bank of Mongolia Indicators for Mongolia’s Sustainable Development Vision 2030 and Mayor of the Capital City Status of the transition The following 20 key results indicators will be used to assess the performance and implementation of to implement the Sustainable Mongolia’s Sustainable Development Vision 2030. Source: Secretariat of Mongolian State Great Hural Financing programme. programme that supports coun- try-led efforts for governments to More recently, in February 2016, include pro-poor, pro-environment the Mongolian Government ap- objectives into national and sub-na- proved Mongolia’s Sustainable tional development. Development Vision 2030 (SDV 2030). National agenda and road- maps The SDV 2030 is a direct applica- tion of the UN Sustainable Develop- At the national level, the Mongolian ment Goals (SDGs). The UN SDGs Government is taking a number of are 17 goals designed to be adopt- positive steps to support a greener ed globally, to end poverty, protect economy. the planet, and ensure prosperity for all. Figure 3 summarises the In June 2014, the Mongolian Gov- overall SDV directions, objectives ernment approved the National and targets. Green Development Policy (NGDP). The goal of this policy is to advance While some of these objectives are Mongolia’s national development precise (for example, reduction of in an environmentally sustainable heat loss by 40% in 2030), others

Photo credit: Ganzorig Gantulga manner. are vaguer (for example, “enforce Encouragingly, Mongolia appears In 2013, Mongolia was also one of the standards” for green cities) to be committed to transitioning the first countries to participate To date, there have been several and leave room for interpretation.

towards a greener economy at in the Partnership for Action on positive steps taken under the At the time of writing this report, Photo credit: Muratama, Flickr both the domestic and internation- Green Economy (PAGE), an inter- NGDP, with actions including: there is yet to be an assessment of al level. national organization dedicated to Mongolia’s progress towards the helping countries in their transition • providing income tax exemp- SDV 2030. International commitment to a greener model of develop- tions for 41 types of equipment and advocacy ment. using solar and wind energy, Subnational Interest with 21 entities receiving tax In December 2015, Mongolia rati- Further, Mongolia also actively exemptions worth approxi- Political authorities in Mongolia are fied the Paris Agreement following participates in the Global Green mately USD 1 million; also in the process of integrating the COP21 international confer- Growth Institute, dedicated to those sustainable targets into sub- ence on climate change. As part of supporting and promoting strong, • introducing tax exemptions for national jurisdictions. Under the this commitment, Mongolia is also inclusive and sustainable economic wood imports, which helped NGDP, five provinces expressed a member of the Green Climate growth in developing countries and avoid the clearing of 1,645 their interest to become “model Fund (discussed further below), emerging economies. hectares of forest; and green provinces”. which aims to finance investment in low-emission and climate-resil- Mongolia is also closely involved • a memorandum of under- Under this commitment, certain ient development. with the United Nation’s (UN’s) Pov- standing was signed by the provinces (aimags) have adopted erty-Environment Initiative, a global Mongolian Banking Associa- vision statements which focus on sustainable development, im- plemented green development frameworks, and adopted green At the national level, the Mongolian Government is taking a development principles. number of positive steps to support a greener economy.

12 www.greeneconomycoalition.org www.greeneconomycoalition.org 13 Photo credit: Khulan Jamiyandorj Khulan credit: Photo 15 GREEN ECONOMY INDICATORS ECONOMY GREEN www.greeneconomycoalition.org www.greeneconomycoalition.org ognized, including internationally. ognized, including internationally. policies government official Turning actions and achieving concrete into will be a crucial tangible outcomes a to transition Mongolia’s part of economy. greener The gap between the official- narra This is evidenced by Mongolia’s This is evidenced by Mongolia’s in the rank better comparatively which Mon- for index, “perception” 12 positions higher (67th) ranks golia ranking. performance than its overall - the govern extent, a certain To - be rec seems to goodwill ment’s commitments, strong emphasizing tive, implementation process and the actual the main challenge. remains - It com- 2 Mongolia performs poorly in the Global Green Green in the Global poorly performs Mongolia 80 countries. out of 79th ranking Index, Economy The Global Green Economy Index: Measuring Economy Index: The Global Green

pares 80 countries around the world countries around 80 pares one common metric, to according tool and is a useful the GGEI index, - national pro and compare asses to green towards transition in the gress economy. poorly performs Mongolia Overall, Economy Index, in the Global Green 80 countries in 79th out of ranking 2016. the sub-indica- analysis of However, in Mongolia’s disparities reveals tors Mon- example, For performance. in “leadership performance golia’s is considered change” and climate “decent” . government This is partly due to - and Mongo policies, growth green co- for advocacy international lia’s sustainable of in the area operation development. in “en- score the country’s Moreover, vironment” as low as in “mar is not and “efficiency and investment” ket indicators These two latter sectors”. weaknesses relative the reflect towards transition Mongolia’s of The gap between economy. green emphasizing narrative, the official commitments, and the actual strong the remains implementation process main challenge. 2 Economy; 5th in the Green National Performance 2016 Edition, September Economy Global Green Index Index Economy The Global Green green (GGEI) analyses national economic performance. GREEN ECONOMY BAROMETER 2018 BAROMETER ECONOMY GREEN MONGOLIA

Photo: European Bank of Reconstruction and Development, Flickr -

Photo credit: CandidaPerforma, Flickr energy”, “industry, innovation and innovation energy”, “industry, be the appear to infrastructure”) Mongolia issues for most pressing the SDG indicators. to according This is evidenced by the fact that in these sectors scores progress 50 percent. reached yet has not on these goals Making progress plan- sound strategic will require energy and ning as infrastructure, long-term costly are innovation investments. at the these fields are However, sustainable of the concept of core should and, therefore, development be tackled urgently. GREEN ECONOMY BAROMETER 2018 MONGOLIA 2018 BAROMETER ECONOMY GREEN Whilst Mongolia performs compar performs Whilst Mongolia room significant still is there well, atively the goals. in most of improvement for However, these figures overlook overlook figures these However, dif- between discrepancies notable Whilst Mon- individual goals. ferent well comparatively performs golia (respectively in SDGs 1, 4 and 10 “quality education” “no poverty”, inequalities”), with and “reduced is there 75 percent, above scores - for improve room still significant the goals. ment in most of should still 17 goals Indeed, 8 out of priorities as they are be considered red on the SDG scale, classified as figures meaning that the current the objectives. far from still very are SDGs 2, 7 and 9 (“zero In particular, and clean “affordable hunger”,

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GREEN ECONOMY INDICATORS ECONOMY GREEN

Bertelsmann Stiftung and Sustainable Stiftung Bertelsmann 14 1 SDG (2017) Solutions Network Development Report 2017, p. 210-211 and Dashboards Index Moreover, Mongolia’s general index index general Mongolia’s Moreover, the close to is very (64.2) score East and South of average regional Asian countries (63.3). Mongolia’s overall global rank (95th (95th rank global overall Mongolia’s countries) in achieving 157 out of its to the SDGs is comparable development in other performance - Human Devel example (for metrics wellbe- subjective opment Index, ing, GDP per capita) and is consist- ent with its status as a developing country. an overall provides The SDG Index towards progress assessment of implementing the UN SDGs, and enables comparison with peer countries. Sustainable Goals Development Green economy indicators economy Green REFORMING FINANCIAL SYSTEMS GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 SOCIAL DEVELOPMENT

Reforming financial systems Social development

Green Financing in golia’s financial sector is interested and in July 2017 GCF completed a Mongolia and participating in supporting USD 20 million transfer to Xac- Mongolia’s transition to a green Bank as part of a USD 60 million Mongolia’s efforts to transition to economy. project to support micro, small and a more sustainable and greener medium-sized enterprises finance economy will require very substan- Since 2013 Mongolia has held an low-carbon initiatives in Mongolia. tial investment. The Mongolian annual Mongolian Sustainable Bankers’ Association has estimat- Finance Forum (sponsored by the Another positive sign is the an- ed that approximately USD 7 billion Mongolian Bankers’ Association), nouncement of the Mongolian is required for national projects bringing together key government Green Climate Fund at the 2017 focusing on energy efficiency, agencies, industry players and Mongolian Sustainable Finance renewable energy, buildings, waste financial institutions to discuss how Forum. This fund is the first dedi- and transportation. A further USD they can work together to support cated financial vehicle for climate 4.3 billion is required to tackle air a greener Mongolia. finance, and has been established and soil pollution and quality. in conjunction with the Global Various initiatives underway Green Growth Institute. Evidence suggests that, to date, demonstrate that limited funds are there are limited efforts by Mon- being made available for green and When launched, it is expected the golia’s financial sector to support sustainable projects. For example, fund will initially mobilize USD 8 – Mongolia’s transition to a greener in December 2016, XacBank en- 10 million to fund energy efficiency Green Sectors It was well received by the UN and responsibility, providing decent economy. To further highlight the tered an accreditation agreement retrofit projects in public buildings other stakeholders. This mapping wage and social protection, and challenge, Figure 5 below shows with the Green Climate Fund (GCF), throughout UIaanbataar. Mongolia has a number of study quantified existing green environmental sustainability. challenges in various key economic jobs, mapped these out across Whilst these initiatives are wel- sectors. The table above highlights economic sectors and subsectors The survey estimated there were come, and should be encouraged some of the various challenges in as well as geographical areas, and 112,300 green jobs throughout There are positive signs that to the greatest extent possible, it respect of agriculture, mining and identified the decent work deficits the country in the second quarter Mongolia’s financial sector is interested is clear that significant challenges energy. in other jobs. of 2016, which represent 9.9% remain in increasing financial flows of all jobs in Mongolia. Whilst and participating in supporting Mongolia’s in support of a greener Mongolia. Green Jobs In 2017, a pilot survey to estimate this was the first survey of its transition to a green economy. the demand for green jobs in kind in Mongolia, the thorough As noted earlier, one of the six Mongolia for the first time, in line methodology used by the the last five years of capital invest- Table 5: Capital investment in conservation & protection strategic objectives under the with international methodologies, researchers undoubtedly laid the ment for the protection and reha- Mongolian NGDP is promoting was completed by the Mongolian ground for future evaluations. bilitation of natural resources. green jobs. Under the ILO’s National Statistics Office, the Indeed, monitoring the trend in definition “green jobs” combine International Labour Organisation green jobs is a way to ensure that As can be seen, in the three years the characteristics of social (ILO), and PAGE. Under the ILO’s Mongolia’s transition to a green until 2015, investment increased responsibility, providing decent definition, “green jobs” combine economy is more widely discussed. by approximately 26%. However, wage and social protection, and the characteristics of social in 2016, capital investment fell environmental sustainability. by 13%. This is likely to reflect tightening economic conditions in The EPCRC completed Mongolia’s Mongolia more generally. first green jobs mapping study There were 112,300 green jobs in 2014 at the request of PAGE throughout the country as of 2016, which Notwithstanding this, there are (ILO, Ministry of Environment and positive signs elsewhere that Mon- Green Development at that time). represent 9.9% of all jobs in Mongolia. Source: www.1212.mn, EPCRC analysis

16 www.greeneconomycoalition.org www.greeneconomycoalition.org 17 SOCIAL DEVELOPMENT GREEN ECONOMY BAROMETER 2018 MONGOLIA MONGOLIA GREEN ECONOMY BAROMETER 2018 WHERE DO WE STAND?

This pilot survey also provides Table 6: Mongolia’s sustainability gap frame some useful insights into the distribution of green jobs Mongolia’s transition to a green throughout the Mongolian economy. The results indicate that 30.3% of all green jobs economy: Where do we stand? are in education, 15.9% are in manufacturing, 9.4% in mining and 6.2% in management. While Using the milestones of the GEC

education is, of course, an Source: Sustainability Thought Leaders, SSH framework, and considering investment for the future, it is the various achievements and hopeful that the proportion of challenges outlined in this report, green jobs will progressively shift Mongolia’s progress towards a towards sectors where the need green economy can be ranked as 3 for environmental (and social) out of 10. sustainability are the most urgent. This is particularly true of the Mongolia is a good example of mining sector, given Mongolia’s the crucial difference between reliance on this sector for legislative commitments on economic growth. paper, and genuine action on the ground. New policies, laws, Inequalities and poverty and participation in international since 2014, due to the recent rapid in regions where the most programmes are necessary Since it opened its economy in economic downturn, highlighting productive mines are concentrated, elements of the transition, but the 1990s, Mongolia has been the fragility of Mongolia’s progress like the Orkhon province . In the they are not sufficient in and of performing relatively well in terms to date. coming years, balancing these themselves. of income equality on the basis of geographical discrepancies certain statistical indicators (GINI Unlike most developing countries, through diversification of the Mongolia performs very poorly in coefficient, inequality-adjusted inequalities in Mongolia haven’t economy and improved social the Global Green Economy Index, HDI, Palma ratio). Up until 2014, skyrocketed over the past 25 safety nets should be considered ranking 79th out of 80 countries in Mongolia showed encouraging years. The poverty rate is on as part of the agenda in order 2016, and UN Environment’s 2015 results in poverty reduction and a decreasing trend. However, to ensure economic and social Green Economy Progress index lifted much of its population above Mongolia’s overreliance on exports inclusiveness as part of a “green found Mongolia to be regressing the poverty line. However, the of natural resources creates growth” strategy. significantly on its path to an Considering the achievements latest figures indicate a strong discrepancies, and economic inclusive green economy. increase in prevalence of poverty development is much more and challenges outlined in this report, Although Mongolia’s performance against the UN SDGs is very close Mongolia’s progress towards a green to the regional average for East economy can be ranked as 3 out of 10. and South Asia, almost half of the JB Dodane, Flickr credit: Photo 17 SDGs are classified as red, with agencies, and the wider public. such as the NGDP and SDV 2030, particular weaknesses against Luckily, some issues are cutting but this process must be deepened SDGs 2, 7 and 9 (“zero hunger”, through to the public – air pollution and accelerated. Mongolia’s “affordable and clean energy”, and green jobs in particular – and natural heritage is deteriorating and “industry, innovation and are already mobilising public rapidly under the pressure of infrastructure”). support for green economy industrialisation, and current gains measures. in economic and social progress Photo: Remtsendorj B (Gamma) Kicking the transition up a gear for ordinary Mongolians are at risk needs real awareness, engagement Laudable new initiatives and of reversal if the country does not and commitment from the private innovations are beginning to choose a more sustainable path. sector, civil society, government emerge thanks to policy initiatives

www.greeneconomycoalition.org 19 Photo: Giulio Bernardi, Flickr