Thursday, June 26, 2014


/Unofficial translation by Ministry of Environment & Green Development of Mongolia. Policy passed by State Great Khural (Parliament of Mongolia) on Friday, June 13, 2014 with immediate effect/

1.            A need and justification for transition to a green development

1.1.        Global perspective

Climate change, rapid economic growth, population explosion, irruption of consumption and services and resource depletion are the greatest global challenges that are posing a risk on earth subsistence. Estimation of ecological impacts of production and consumption suggests if this development trend further continues, a need for resources will exceed global resources available by 2030.

Thus, all countries and every citizen need to substantially change their live style and production and consumption patterns and shifting into environmentally friendly, "green"   lifestyle. These global challenges discussed in the United Nations Conference on Sustainable Development which took place in 2012 and recommended the adoption of country specific green economy as a vehicle to sustainable development and poverty reduction. Furthermore, United Nations specialized agencies brought up green economy, green production and green growth concepts aimed at creation of economic systems with low carbon emission, efficient use of natural resources and avoidance from environmental pollution and degradation and made commitments to creation of new opportunities of participation in the global economic integration. 

1.2.        Development opportunities and challenges of Mongolia

In case of Mongolia, it has an opportunity to create a green development keystone through using its cultural and traditional advantage, ability to live in harmony with nature and environment, its geographical location, rich mineral resources and relatively pristine and natural terrain. In the other hand, Mongolia is at the outset of economic boom backed by natural resources, 47.2% of total population is young with 15-40 years of age, country is open with democratic governance and it has a political commitment to sustainable development.

However, Mongolia is facing numerous challenges, including poverty, un-equal income distribution, natural resource-based economic structure, inefficient use of energy and resources, wasteful consumption, technical and technological obsolescence and vulnerability to climate change. 

Thus, Mongolia needs to change “Grow first and Clean-it up later” axiom by turning it into environmentally friendly, waste less and effective production with increased productivity, create an inclusive and participatory economic growth aimed to increase quality of life.

1.2.1.   Green development concept

1.2.2.   Green development terms and definitions

The terms used in this document shall be construed as follow:

“Green development” means a development model with efficient and effective use of natural resources, ecosystem services support, lower green house gas emission, wasteless, reduced poverty through inclusiveness,

“Green economy” means an economy aimed to improve human well-being, social justice and inclusiveness along with reduced environmental risks and degradation,

“Green growth” means an economic growth that ensures environmental sustainability, supports social inclusiveness/participation and with lower green house gas emission,

“Green production” means energy and resource efficient and wasteless production activities with lower greenhouse gas emission and with no human health and environmental risks,

“Green job” means any job that contributes to reduced consumption of energy, raw materials and water and limitation of greenhouse gas emission, waste and pollution reduction, ecosystem preservation and restoration and aimed to environmental protection and improvement of environmental quality through climate change adaptation. 

“Green city” means a city and urban settlement that ensures comfortable human living and development opportunities with smart energy, heating, water supply, communication, public transportation and optimal waste management infrastructure,

“Green building” means a building structured and constitutes a comfortable living and working environment with the use of building materials that does not cause negative impacts on human health and environment, energy efficient, heating system with low carbon emission, technology of rain water collection and with the sewage or waste water treatment system,

“Green procurement” means a procurement of goods, works and services that are directed to ensuring efficient use of energy and natural resources, sustainability of ecosystem services, climate change adaptation and creation of green environment,

“Green investment” means a financing of and investing in projects and operations which use energy and material efficient and waterless technologies with ecosystem conservation value,  

“Green tax” means a tax that aims to reducing production, services, imports and consumption with negative environmental impacts,

“Ecosystem services” means benefits/gains of supply of natural food, raw materials and other resources, regulation of climate change impacts and impacts of rapid environmental degradation, sustaining human life and mental recreation, 

“Payment for ecosystem services” means a payment mechanism between beneficiaries of ecosystem services and contributors to ensuring sustainability of ecosystem services.

1.3.        Green development concept of Mongolia

Supporting the global commitment to transition to a socially inclusive, low carbon and wasteless development model by changing current development trends and conserving natural resources and ecosystem value along with increased human well-being and reduced poverty;

Green development concept is transition to a development model that results in human well-being by safeguarding environmentally friendly, inclusive economic growth, enhancing natural resources utilization and maintaining the ecosystem service sustainability.

Based on Sustainable development concept of Mongolia,

Recognizing the need for a change in socio-economic development trends and pattern,

The green development concept is a transition to a development model that results in   sustaining well-being of people by ensuring environmentally friendly, inclusive economic growth or increasing efficient consumption of natural resources and sustainability of ecosystem services.

Transition to a green development will be ensured by valuing benefits and rationale use of natural resources, increasing productivity, green investment and green procurement, expansion of works and services directed to enhancing conservation of ecosystem balance and restoration, engraining environmentally friendly production and services and green lifestyle.

Key indicators for measuring progress of transition to a green development will include savings of natural resources derived from production and services, level of recycling, green employment and green procurement growth, reduction of usage of energy, water, greenhouse gas emission and ecological footprint per unit of production.

1.3.1.   Guiding Principles

The following principles will be followed for ensuring green development:

-       Efficient, effective and rationale use of resources;

-       Sectoral policies and planning shall be consistent with green development concept;

-       Promotion of clean and advanced technologies;

-       Ensure citizens participation in green economic growth;

-       Engrain environmentally friendly attitude and habits/competence;

-       Transparency, accountability and controllability.


2.1.        Purpose

Evolve as an advanced nation having built conditions for environmental sustainability to be inherited by future generations and with an opportunity of gaining benefits from it in the long-run through participatory and inclusive economic growth based on green development concept. 

2.2.        Strategic objectives

The following strategic objectives will be achieved to ensure green development:

Strategic objective #1: Promote resource efficient, low greenhouse gas emission and wasteless production and services.

Strategic objective #2: Preserve ecosystem balance through intensification of environmental protection and restoration activities and reducing environmental pollution and degradation.

Strategic objective #3: Introduction of financing, tax, lending and other optimal incentives for supporting green economy and increasing investments to promote  environmental protection, human development and clean technologies.

Strategic objective #4: Promotion of green employment, poverty reduction and engraining/promoting green life style.

Strategic objective #5: Promotion of “Live in harmony with nature” living and culture values and make education, science and innovation as catalysts for green development.

Strategic objective #6: Develop and implement population settlement plan in accordance with climate change, availability of natural and other resources in regions and restoration capacity.


3.1.        Strategic objective #1 will be achieved through implementation of following measures:

3.1.1.    Reduction of greenhouse gas emission in the energy sector through  increased  energy efficiency by 20 by 2030 ensuring the share of renewable energy in total energy production to 20 and 30 percent by 2020 and 2030 respectively and by renewing energy and industrial sector technologies, reducing wasteful consumption and losses and through  optimization of pricing policies.

3.1.2.    Reduction of building heat losses by 20 and 40 percent by 2020 and 2030 respectively through introduction of green solutions, energy efficient and advanced technologies and standards, including green building rating system, energy audit and introduction of incentives to promote these initiatives.

3.1.3.    Introducing environmental standards and norms consistent with international standards and increase results/quality of environmental assessment while promoting competitiveness and increased productivity.

3.1.4.    The processing of agricultural raw materials, including animal skin, wool and cashmere will reach 60 and 80 percent by 2020 and by 2030 respectively through promotion of sustainable agriculture development and development of green-tech, export-oriented manufacturing industry cluster.

3.1.5.    Reduction of soil erosion and eradication due to crop production and increase  production of wheat, potatoes and vegetables to meet local demand through improved soil fertility, introduction of soil maintenance agro equipment, water efficient and effective advanced technologies and creation of forest zones. 

3.1.6.    Improve agriculture product supply chain and networks and provide support to introduction of storage and packaging technologies.

3.1.7.    Develop eco-tourism products and services that meets environmental and sanitation requirements.

3.1.8.    Promote resource efficient and wasteless mining technologies

3.1.9.    Preventing negative impacts on human health and environment arising from mining activities through engraining transparent and responsible mining practices, increased results of environmental protection, restoration and offset protection.   

3.1.10.  Preventing pollution through use of international standards for conventional and un-conventional oil deposit exploration and mining and frequent monitoring and evaluation. 

3.1.11.  Creation of Wealth/Sovereign fund using mining sector income and use it for ensuring long-term sustainable development.

3.1.12.  Develop environmentally sound infrastructure and transportation network with no adverse impacts on human health and biodiversity.

3.2.        Strategic objective #2 will be achieved through implementation of following measures:

3.2.1.    Conservation of virgin nature and ecosystem balance through protecting at least 60 percent of water stream and spring water area and expanding protected areas to 25 and 30 percent by 2020 and 2030 respectively and create sustainable financing mechanisms.

3.2.2.    Promote transformation of natural and cultural heritage sites into exemplar of green development areas by limiting mining and industrial activities and developing eco-tourism and traditional livestock husbandry.

3.2.3.    Strengthen national capacity to adapt to climate change and reduce its negative impact.

3.2.4.    Creation of resources and prevention from deficiency by protecting biodiversity gene fund, their range land and habitat.

3.2.5.    Ensure that the condition for accessing resource benefits through registration and assessment of genetic funds and other relevant traditional knowledge base and creation of necessary regulatory framework for its use.

3.2.6.    Strengthen capacity to assess risks and prevent the impact of genetically modified organisms on human health and environment set limitation on import and trading of genetically modified organisms.

3.2.7.    Enhance forest absorption of carbon by intensifying reforestation efforts and expanding forest areas to 9 percent of country’s territory by 2030.

3.2.8.    Create sustainable financing sources through introduction of community-based natural resources management in protection and sustainable use of forest, non-timber resources, flora and fauna.

3.2.9.    Provide at least 90 and 60 percent of population with access to hygienic drinking water and improved sanitation facilities respectively by increasing water supply and sewerage capacity and productivity.

3.2.10.  Limit the use of surface water for industrial purposes and promote the introduction of technologies for wastewater treatment that ensures waste water is treated to meet permissible standard levels for its re-use. 

3.2.11.  Promote research and development towards improving surface water restoration system and initiatives to store and use of rain water and projects on creation of river basin.

3.2.12.  Reduction of impacts from desertification, land degradation and drought by creating conditions to minimize human impacts on environment in climate change conditions and through rapid economic growth.            

3.2.13.  Promote efforts aimed to reclaiming at least 70 percent of degraded, polluted  and abandoned land due to production activities.

3.2.14.  Improve mechanisms for increased investment returns and regulatory mechanisms for optimal utilization of natural resources.

3.3.        Strategic objective #3 will be achieved through implementation of following measures:

3.3.1.    Promote green investment equivalent to not less than 2 percent of GDP annually for green development, reduce per unit greenhouse gas emission and increase productivity and investment to ensure resource efficiency.

3.3.2.    Increase investments in public awareness campaigns of assessing benefits and supporting ecosystem services, including forest water containment, carbon absorption, floodplain water collection and treatment and environmental protection and restoration.

3.3.3.    Creation of green taxation system to decrease production and import of goods and services that are harmful to the environment.  

3.3.4.    Reflect green development principles in international trade agreements and contracts and promote trading of low carbon and energy efficient technologies.                                         

3.3.5.    At least 20% of public procurement shall be the procurement of environmentally sound, effective and resource efficient goods, works and services

3.3.6.    Enhance social responsibility of legal entities and organizations by creation of environmentally sound, sustainable financing system for financial institutions

3.3.7.    Estimate the share of environment contributions in socio-economic development by incorporating green development indicators in national accounting systems.

3.4.        Strategic objective #4 will be achieved through implementation of following measures:

3.4.1.    Create an environment for secured income by decent employment for at least   80% of working age population has thought continuously increased jobs within the framework of public-private partnerships.

3.4.2.    Enhance labor productivity through creation of competitive and professional workforce educated at homeland consistent with international education standards.

3.4.3.    Expand emerging middle class by promoting investment towards expanding social protection base and creating multiple sources of livelihood.

3.4.4.    Involve citizens in vocational training programs, provide job placement services, and increase labor value for and provide sufficient compensation to child care women.

3.4.5.    Ensure food safety, supply and availability, create an environment for equitable provision for the public with social services necessary for healthy living.

3.4.6.    Strengthening capacity of resilience to negative impacts of climate change by implementing projects and programs aimed to increasing livelihood of citizens dependent on biodiversity and natural resources.

3.4.7.    Creation of incentives such as payment for ecosystem service for herders with initiatives directed to preventing pasture degradation by managing livestock farming adapted to grazing capacity in remote areas and caring over watershed protection and spring water.

3.5.        Strategic objective #5 will be achieved through implementation of following measures:

3.5.1.    Develop and engrain skills and culture of patriotism, traditional customs of protecting the environment, environmentally friendly livestyle and efficient consumption culture through sustainable development education.

3.5.2.    Promoting the introduction of environmental standards MNS ISO14000” in legal entities and introduction of good practices of efficient production and consumption.

3.5.3.    Take risk assessment and preservation measures for environment, historical and cultural heritage prior implementation of large mining operations and development projects.

3.5.4.    Develop clean technologies and innovation by increasing the share of expenditures for science and technology research, experimentation/testing and introduction to 2 and 3 percent of GDP by 2020 and 2030 respectively and make these as catalysts for green development. 

3.5.5.    Increase production of green products with its leading quality and specifics through expanded cooperation between science organizations and industry aimed to introducing innovation, bio and nanotechnology transfer, incubation, localization and commercialization.

3.6.        Strategic objective #6 will be achieved through implementation of following measures:

3.6.1.    Creation of comfortable working and living environment through prevention from excessive concentration of population and developing self-sufficient green and smart small cities and villages consistent with future trends of climate change and natural resource carrying capacity/load.

3.6.2.    Reduction of air, water and soil pollution by implementing improved plan for urban land use, construction zoning and infrastructure and creation of appropriate legal framework on accountability.

3.6.3.    Increase the green area share by 15% by 2020 and 30% by 2030 respectively through re-planning of Ulaanbaatar city and other urban settlement areas.

3.6.4.    Reduction of solid waste for landfill by 20% by 2020 and 40% by 2030 respectively by providing a support for introduction of efficient and effective technologies and proper wasteless management through creation of knowledge and good practice on healthy living, recycling and production of value added products.

3.6.5.    Development of environmentally sound, inclusive, safe and riskless ypes of public transportation and services and creation of comfortable travelling environment for citizens.

3.6.6.    Increase the space for pedestrians and bicycle riders through improved planning and organization of pedestrians carriageway, green area, bicycle lane and parking. 

3.7.        Policy implementation phases

The Green development policy will be implemented in two phases:

First phase: Establishment of foundation for green development phase, 2014-2020

Second phase: Transition to a green development phase, 2021-2030


4.1.        Implementation mechanisms, monitoring and evaluation

4.1.1.    The government of Mongolia will adopt the Mid-term Green Development Action Plan.

4.1.2.    Green development policies will be incorporated in the Government Action Program, sector policy documents and public investment programs.

4.1.3.    Political parties and coalitions shall reflect green development concept in their Election platforms and programs for implementation.

4.1.4.    Provide incentives to citizens, private sector and civil society initiatives and participation in green policy implementation and expand cooperation and partnerships.

4.1.5.    The government shall undertake annual evaluation on the implementation of Green development policy and present it to the Parliament.

4.1.6.    The results of implementation of Green development policy shall be assessed based on appropriate methodology and modeling.

4.2.        Criteria and expected results

The following criteria and indicators shall be used to measure the results of Green development policy implementation. 2013 data will be the baseline quantitative indicators.




Share of renewable energy in total installed capacity of energy production



Reduction of building heat loss



Waste recycling share



Share of expenditures for green development in total GDP



Share of expenditures for science and technology research in total GDP



Share of green procurement on total government procurement



Share of protected areas



Increased investments in environmental protection and restoration



Share of forest area



Percentage of population has an access to safe drinking water



Percentage of population living in connected to improved sewage/waste water treatment systems



Poverty level



Percentage of green parks and areas in Ulaanbaatar and other urban areas



Share of agriculture and manufacturing sector in total GDP



Expected results

First phase: Establishment of foundation for green development phase, 2014-2020

Creation of green development models and norms in all economic and social sectors that are consistent with own country specifics, creation of legal framework needed to ensure green development and actively mobilizing infrastructure and other reconstruction efforts aimed to enhancing long-term sustainable economic development. 

Per unit greenhouse gas emission reduced through Mongolia’s achievement of its sustainable development goals, development of regionally competitive production and service sectors, formation of knowledge-based economy, development of environmentally sound and highly efficient green infrastructure, production of renewable energy and clean production technologies by introducing green investment and financing mechanisms.      

Second phase: Transition to a green development phase, 2021-2030

Green economic, socially equitable, inclusive and highly efficient development system established where nature and environment conserved, smart gaining of benefits from ecosystem services achieved and climate change adapted. High tech and innovative production will be dominated in the economic structure and transition to a green economy achieved.    


1 comment:

  1. What authority does the MEGD have in implementing these policies?