Mongolian Sustainable Finance Initiative
Although Mongolia is a mining-driven economy, other important sectors include agriculture/livestock and associated products (cashmere, wool, meat); construction and real estate development; and transportation. Ninety-five per cent of investment funding in Mongolia comes from the banking sector. A number of challenges associated with these sectors include air pollution, climate change and water scarcity, as well as a need for inclusive development. All this amounts to increasing pressure on business and the banking sector to consider ways to balance economic, environmental and social considerations.
In response to these challenges, Mongolia is developing a Strategic Plan towards Green Development, with the concept of Green Civilization. Mongolia is committed to working toward a low carbon economy; conserving natural, cultural and historical heritage; and promoting human development and environmentally friendly processes.
Sustainable Finance is an opportunity for the Banking Industry to take a lead in Mongolia's Green Development and identify new markets. By doing so, banks are not just doing the right thing to help preserve Mongolia's environment and support Mongolia's communities, but can also seize the opportunity for a first mover advantage to expand into new markets such as low carbon financing.
Mongolian government agencies, industry players and financial institutions met in May 2013 at the first Mongolian Sustainable Finance Forum in Ulaanbaatar to discuss how they can work together towards a green civilization for Mongolia. They benefited from international experiences and knowledge shared by IFC, FMO, and private sector players from other markets.
The Forum was well attended by all major stakeholders in the Mongolian banking industry, including the President's Office, Bank of Mongolia, the Ministry of Environment and Green Development, all 14 Mongolian banks, the Mongolian Bankers' Association, the Banking and Finance Academy, as well as key industry representatives served by the Mongolian banking industry.
In particular, the Forum featured a CEO Roundtable at which CEOs from 10 Mongolian banks shared their experiences with addressing sustainability through E&S policies. All the participating banks expressed a desire for shared learning and collaboration, and agreed on the need for more awareness and capacity building – for bank staff as well as clients
In accordance to that, the participating CEOs agreed to establish a Working Group for sustainable finance, to be convened by the Mongolian Bankers' Association, which would work towards a joint declaration on sustainable finance by Mongolian banks.
See more at: http://mba.mn/mongolian-sustainable-finance-initiative-eng/
