’S PERSPECTIVE ON GREEN DEVELOPMENT

Green Growth Development Paths for a Better Future Joint OECD -GGGI Workshop

22 November 2012, Paris, France

DDdiamdin DDdjagvadorj, PhD, S peci al E nvoy on Cli mat e Ch ange, M ongoli a Country at a glance:

. Territory: 1.56 Mil. sq. km . PltiPopulation: 2.8 Million . GDP growth rate: 17.2% (2011) . Inflation: 9.7% (2011) Green development concept in the development agenda

The new government of Mongolia established in 2012 announced that green development concept is a new development strategy of the country.

Ministryy, of Nature, Environment and Tourism

Min is try o f Env ironmen t an d Green Development / with status of the core Ministry/*

*Established according to the law on government structure on 16th August 2012 Green Development Objectives

In the government action program for the period of 2012-2016 :

. To develop green development concept and legal framework and to implement demonstration projects/programs in key economic sectors;

. To launch several ambitious industrial programs and projects in railway, mininggyg, roads, industry, building sectors nationwide .

. To provide incentive to environmentally friendly, clean technologies and green consumption;

. To cceatereate mech ani sm to link ggeereen dev el opm en t poli ci es withloan poli ci es of major banks or financing institutions who provide loans to big mining as well as other big infrastructure projects;

. To support introduction of environmentally friendly, best available techniques and technologies into mining activities and new development projects. To adopt principles of prohibiting mining activities which have severe environmental impacts and has negative net present values when environmental damage is taken into account. Main Characteristics of a Brown Economy

Mongolian economic sectors are very energy intensive and carbon footprint is very high.

. CO2 emission per GDP is 10 times higher than the world average.

. Energy intensity of industrial output is 7 times higher than the world average

. Aut om obil es- eegmitting 50% mooere poll uti on Sources of electricity generation in Mongolia

ДDieselизель plantsтүлшнээс НүүрсээсCoal fired PPs УсаарHydro and wind ИмпортоорImport

Source: Mongolian Energy statistical indicators, 2011 Carbon intensity of energy (compared with regional countries)

Carbon intensity of Mongolian energy sector is highest among regional countries due to extensive use of coal for electricity and heat prodtiduction.

Source: Asia Pacific HDR , 2012 7 Water pollution situation

Due to the active gold and other mineral exploration and mining activities, around , Orkhon river in Arkhangai and Uvurkhangai province, Boroo river in is extensively polluted. Composition of Environmental Damagygges Caused by Mining Activities

ГадаргынSurface waterус ГазUndergroundрын доорхи уwaterс 1% 0% Soil cover 7% Хөрсөн бүрхэвч 8% Plant and Ургамлан нөмрөг 8% vegetation cover 3% Эдэлбэр газар Arable land Газрын хэвлий 73% Underground soil ОйнForest сан stock АWildlifмьтанe АгаарAir мандал

Current environmental damage has been estimated to be 1.162 trillion MNT of which 672 trillion is related to areas leggyally prohibited to mine.

Source: Ministry of Environment and Green Development Share of renewable energy in the energy ppproduction and consumption (compared with regional countries)

Renewable energy share in thttlthe total energy production is lowest (except Iran) among regional countries.

Source: Asia Pacific HDR , 2012 10 Energy intensit y of industrial out put (compared with regional countries)

Energy iiintensity of industrial production in Mongolia is a number of times higher than other countries in the region.

Source: Asia Pacific HDR , 2012 11 Overview of GHG emissions in Mongolia

Overview of GHG Emissions (2006)

Agriculture sector (1,000t-CO2) Industry Waste 1 % Rice cultivation 0 5% Field burning of agricultural residues 1

Manure management 172

Agricultural soils 394 Agri-culture 36% Enteric fermentation 5,895 Energy 58% Energy sector (1,000t-CO2) Fugitive Oil and natural gas 0 emissions Coal from fuels 150 Others 244 MftidManufacturing and cons ttitruction 356 Fuel combustion Commercial, residential & agriculture 1,181 Transport 1,887 Energy industries 6,399

Source: Mongolia 2nd National Communication 12 Renewable energy is key in reducing GHG emissions as well as air pollution

Advantage for linking GHG emission reduction activities to international mechanisms 1. Overlapping policy objectives  Possibilityyg to arrange financing  Policy support and subsidy

Advantage of linking air pollution reduction measures with carbon finance mechanisms: 1. MRV mechanism which meets international standards, 2. Additiona l revenue s tream inthe future secures project stability in the long term. 13 CDM under the Kyoto protocol is a way to Reduce Emissions in the Energy Sector

Approved project type

1, 14% Project Status Num. Renewable CDM projects registered at CDM executive 4 board

4, Energy CDM projects approved by DNA 7 2, 57% efficiency 29% CDM projects at or after the validation stage 2 Biofuel

Registered CDM Projects

Num. Average annual Amount of Total ERs by Review Rejected of emission issued CERs 2012 (tCO2) Conducted ppjrojects reduction(tCO2) (tCO2)

Hydro Power 2 30,000 302,173 51,269 0 0

Wind Power 1 178,778 0 0 0 0

Energy Efficiency 1 11,904 83,328 0 0 0

Total 4 62,670 385,501 51,269 0 0 14 Source: CDM National Bureau, CCCO, MEGD Nationally Appropriate Mitigation Actions (NAMAs) in Mongolia

Mongolia submitted its NAMAs on 28th January 2010

№ Sector / Actions Scope of Actions

1 Energy supply - Increase renewable options a PV and solar heating Install large scale PV systems in Gobi region b Wind power generators and Wind farms Place 100-150kW wind turbine generators in provincial centers in the southern part Implement large scale wind farm project c Hydro power plants Encourage the use of small and medium sized hydro developments 2 Energy supply - Improve coal quality a Coal beneficiation Introduce coal washing at the biggest coal mines such as Banganuur, Shivee-Ovoo and Tavantolgoi b Coal briquetting Introduce coal briquetting technology

3 Energy supply - Improve efficiency of heating boilers a Improve efficiency of existing HOBs and Install Use 25MW efficient boilers x 12 boilers with new design and high efficiency Install 1MW new boilers x 260 b Convert hot water boilers into small capacity thermal Convert steam boilers into 10MW thermal power plants x 5 power plants 15 Nationally Appropriate Mitigation Actions (NAMAs) in Mongolia (Cont’d)

№ Sector / Actions Scope of Actions

4 Energy supply - Improving household stoves and furnaces a Change fuels for household stoves and furnaces Change raw coal used in stoves of households in cities by LPG and ClbittCoal briquette b Modernize existing and Implement the new Modernize stoves and furnaces x 250,000 design for household stoves and furnaces 5 Energy supply - Improve CHP plants

Improve efficiency and Reduce internal use Improve efficiency at CHP plants Reduce own use at CHP plants 6 Energy supply – Increase use of electricity for local heating in cities

Use of electricity from grid for individual In ger (traditional tent house) districts of Ulaanbaatar city households in cities 7 Building – Building energy efficiency improvement a Improve district heating system in buildings Reduce the loss such as minimizing leakage and replacement of valves and compensators Regulate room temperatures by residential customers b Install heat and hot water meters in apartments Install the meters in apartments to calculate their heating fee and price based on actual amount of feat used c Make Insulation imppgrovements for existing Lesson the heat loss to improve energy efficiency at houses and buildings and implement new energy efficient buildings 2-3 times higher than current standards for new buildings d Improve lighting efficiency in buildings Replace current ILB to energy efficient CFL in 30% of service and commercial buildings 16 Sustainable development concept and initiatives

Mongolia has been establishing legal framework and institutional arrangements of sustainable development since the1992 Rio Summit.

. National Program on Sustainable Development, 1997

. MDG-based Comprehensive National Development Strategy, 2008

. Mongolian Action Program for the 21st Century (MAP 21), 1994

. National committee on sustainable development headed by the Prime Minister was established in 1994 as a coordinating entity for development and implementation of MAP 21 .

. National Green Development Committee headed by the Prime Minister is a governance body to coordinate and manage green development policy and strategy in the country, 2012 Green development goals

. To establish legal and policy framework and institutional arrangements for green development of the country. . To green all spheres of life style of the people and industrial and service sectors of the country, . To introduce clean and green technologies . To establish climate resilient and a low carbon society . To increase use of alternate and renewable energy sources . To legally prohibit mining activities in the regions with valuable environmental assets; . To implement policy towards adopting EU common principles, standards and rules in Mongolia; . To bring level of cooperation between central government and local communities , NGOs in preserving the environment to a whole new level; . To introduce offset mechanism into mining restoration; . To introduce waste recycling technology to household as well as industrial sectors; Measures to be taken to reach the goal

. Green development concept, legal framework and action program to be developed and approved; . Techniques and technologies in major economic sectors will be assessed and environmentally sound technologies will be introduced, . Green elements of traditional nomadic civilization and local communities will be identified and spread, . Special protected areas will be expanded and will be included into World environmental and cultural heritage sites list; . The requirements in the environmental impact assessment will become more stringent, strategic environmental assessment will be conducted for development projects, programs and plans; . Action programs of climate change adaptation and mitigation, water resource protection and desertification will be implemented. . The procedure to award eco labeling will be improved; Measures to be taken to reach the goal (Cont’d)

. Improve the procedure to estimate the deposit for environmental restoration cost; . Create legal environment for prohibiting mining in some areas and establishing the borders of areas where no mining is to be allowed; . Adopt EU standards in mining restoration, appropriate use of water resources and timber production; . Outsource some of the government activities to NGOs and professional associations; . Introduce industrial and solid waste recycling techniques and technologies; . Regulate flows in Orkhon, Selenge and Tuul rivers, establish water reservoirs, and conduct feasibility studies for multi pppurpose water complex based on the pre-feasibility study on water transportation and distribution; . Create sustainable financing mechanism to support special prottdtected areas, itintro duce conservation measures bdbased on ecosystem service THANK YOU FOR YOUR ATTENTION!

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