ADB to Promote Green Regional Development

2023-03-31 09:22:54

Ulaanbaatar, March 31, 2023 /MONTSAME/.  The Asian Development Bank has approved an investment program of USD 448 million to support green and inclusive development of Mongolia's aimags and soums. According to the ADB, this Investment Program for regionalized "Green Development" of aimags and soums will promote a transformative model for green territorial development and urban-rural linkages. In this way, the program aims to turn the centers of provinces and soums into anchors of climate-smart agricultural businesses that support sustainable, climate change-resistant and carbon-absorbing pasture management. It will be done through:

  • Ensuring the balance of territorial development of Mongolia,
  • Reducing migration towards Ulaanbaatar city,
  • Restoring natural resources that absorb carbon.

ADB Principal Portfolio Management Specialist Mr. Arnaud Heckmann said that an integrated solution to handle the multifaceted challenges facing the country would be piloted.

Grasslands cover 82 percent of Mongolia's land area, but they are on the verge of “extinction” due to overgrazing and unsustainable management practices. Due to climate change, the productivity of fragile pastures has deteriorated and herders face more risk of natural disaster.

Therefore, sustainable pasture management that is resistant to climate change and able to absorb a lot of carbon will be applied in order to support herdsman groups in the western aimags of Mongolia, train and empower them in sustainable management practices in animal husbandry and agriculture.

By supporting renewable energy and low-carbon solutions through urban services, it will create an opportunity to develop the centers of aimags and soums as centers for a green agricultural value chain and a place pleasant to live in.

The Project will establish a regional green and inclusive agribusiness fund to increase financial access to climate-resilient and low-carbon agribusiness value chains. The fund will create climate-based multilateral financial mechanisms and institutions to address the financial challenges faced by agribusiness SMEs.

The total cost of this Program, jointly financed by the Government of Mongolia, the private sector, European Investment Bank, the European Union and the Green Climate Fund, is USD 735 million. A USD 3 million grant is sourced from the Asian Development Fund (ADF). The project will be implemented in three stages (tranches) and is expected to be completed in 2033.

Related news