By Bolortuya Chuluunbaatar

Photo by Byamba-Ochir Byamba-Suren

Series – Part 1

Ulaanbaatar, December 30, 2025 /MONTSAME/ For centuries Mongolians believed the foundation of life itself comes from the connection to nature – the mountains, the forests, the rivers and the plains. This is why the belief that breaking a single branch is akin to taking a life has been passed down through generations. This spiritual belief has been passed down through generations and remains rooted in our cultural consciousness. Even today, when seeking peace and clarity, we instinctively turn toward nature.

Yet, when residents of Ulaanbaatar wander even slightly into the nearby forests of the city, whether south toward Bogd Khan Mountain, east toward Tur Khurakh, or north toward Ar Gunt, they are met with a disheartening scene: decaying trees, fallen trunks, and litter scattered across the forest floor.

These troubling scenes raise an uneasy question: Are we losing our customs and values that once taught us to love and protect nature?

So then, what does environmental protection mean now?

Sustainable Development Goal (SDG) 15 defines environmental protection as: conserving, restoring, and ensuring the sustainable use of terrestrial ecosystems; promoting sustainable forest management; combating desertification; halting and reversing land degradation; and stopping biodiversity loss.

More specifically, Target 15.6 emphasizes: the fair and equitable sharing of benefits arising from the utilization of genetic resources and the promotion of their responsible use. These objectives are essential for meaningful environmental protection.

This brings us to a pivotal question: Are we truly implementing the balanced policies required to protect our forests, in Mongolia? Are we preserving them,or are we gradually destroying them?

I. FOREST AREAS AFFECTED BY PESTS AND DISEASE TRIPLED BETWEEN 2020 AND 2023

Mongolia has designated its forests as part of a national forest fund, which includes Special Forest Zones, Protected Forest Zones, and Industrial Forest Zones. Mongolia’s forest fund covers 18.3 million hectares, accounting for eight percent of the country’s total territory—an area roughly comparable in size to Romania.  Unfortunately, more than 70 percent of these forests are known to be aging and degrading, meaning that they are increasingly vulnerable to pests and wildfires, store less carbon, and gradually lose their ecological and economic productivity.

During a research discussion held under the Mongolia–European Union “Forest Partnership” initiative, S. Narantsetseg, head of the “Sumber Ekh Nutag” Forest User Group in Tuv Aimag noted, “Climate change and human mismanagement have caused extensive accumulation of deadwood and thick underbrush.” In her words, “Reforestation without first tending and cleaning the forest would be ineffective. If proper forest cleaning is carried out, nature is capable of regenerating on its own.”

This means removing mature and overgrown trees is one of the most important measures to support natural regeneration. At the same time, properly harvested, good-quality timber should serve as raw material for Mongolia’s wood and wood-product manufacturing sector, helping advance economic diversification.

A report titled “Forest Succession and Woody Debris,” published by the New York Institute of Environmental Science and Forestry, states that when about 30 percent of a forest consists of deadwood, favorable conditions exist for young forests to grow and for various organisms to thrive, and ecological balance is maintained. However, when no maintenance is carried out, aging trees fall and block the growth of new ones, dry out and increase the risk of fire, and attract harmful insects that can damage forests beyond recovery.

In Mongolia, the largest driver of forest loss is the spread of pests and diseases. According to the National Statistics Office’s “Forest Resource Account – 2023,” the area affected by forest pests and diseases reached 1,035.1 thousand hectares in 2023, an increase of 2.7 times compared with 2020.

Chart 1. Decline in forest-covered land by category and share of total

Source: NSO

From these indicators, it is clear that Mongolians are failing to protect the natural wealth bestowed upon us by Mother Nature. This raises an important question: what scale of wealth are we actually talking about?

II. WEALTH EQUIVALENT TO TWENTY-TWO TIMES MONGOLIA’S GDP

A single tree can supply the annual oxygen needs of two to three adults, increases local humidity by two to four percent, and provides habitat for roughly 500 to 1,000 living organisms. Moreover, one tree absorbs an average of 25 kilograms of carbon dioxide per year, playing a critical role in slowing global warming. This amount of carbon corresponds to the emissions produced by driving a car for 100 kilometers. These figures represent some of the most important indicators of the environmental, health, and economic value of forests.

Mongolia has more than ten types of tree species, including shrubs, fir, saxaul, and pine of which larch forests account for 63 percent of total forested area and approximately 80 percent of total forest fund.

By province, Khovsgol (27.4 percent), Bulgan (10.5 percent), Govi-Altai (10.2 percent), and Selenge (8.8 percent) hold the largest shares of forest resources. Based on the ecological and economic valuation approved by the Minister of Environment and Tourism in 2020—taking into account the types and volumes of tree resources in each aimag—the total forest stock of Mongolia is currently valued at USD 253 billion (MNT 909 trillion, converted at the Bank of Mongolia’s MNT–USD rate on 21 October 2025) according to studies conducted under the Mongolia–European Union Forest Partnership. This valuation is based on an ecological and economic assessment that accounts for forest area, species composition, timber volume, and the estimated ecosystem services provided by forest resources.

Chart 2. Forest resources of Mongolia by aimag (thousand hectares, percentage share)

Source: “Forest Partnership” – Ecological and Economic Valuation of Mongolia’s Forests, 2025

According to the ecological and economic valuation approved by the Minister of Environment and Tourism in 2020, the cedar forests of Selenge Aimag alone are valued at approximately USD 6.52 billion. Nationwide, the total valuation of cedar forests is estimated at approximately USD 27.76 billion.

Coniferous forests, which are widely spread across the northern regions of Mongolia, have an estimated valuation of approximately USD 179.5 billion, while pine forests are valued at around USD 18.24 billion. However, it is important to note that these calculations are based on total forest area and do not account for the extent of aging and degradation. Even so, Mongolia has been endowed with a vast natural resource base equivalent to twenty-two times the country’s GDP.

Unfortunately, due to poor management, more than 70 percent of Mongolia’s total forest stock has aged or degraded, leading to a continued decline in ecological and economic value.

Z. Uuganbayar, a lead member of the Association of Community-Based Natural Resource Management Forest User Groups in Selenge Aimag, stated, “During the research discussion that mature forests have increased significantly not only nationwide but also within Selenge itself. To maintain these mature stands, thinning and cleaning operations are essential.” Because thinning plays a crucial role in sustaining forest health, he stated, “The need to improve the legal framework and permissions for such practices within the Forest Law and to support them through policy measures.”

In Selenge Aimag, forest protection, restoration, tree cultivation, and the production of timber and wood products are relatively well developed compared to other regions. This is evidenced by the fact that the aimag alone accounts for approximately 17 percent of all national forest resource-use fee revenues.

According to the same valuation methodology, the ecological and economic value of Selenge Aimag’s cedar forests is estimated at USD 6.52 billion. However, 74 percent of these forests are old or overmature, meaning that approximately USD 4.85 billion in forest value is at risk of loss. In other words, Mongolia stands to lose an amount equivalent to roughly 85 percent of its total budget revenue for 2024.

This means the potential loss is comparable to fifteen times the annual government revenue from Oyu Tolgoi copper mines, twice the export earnings of Tavan Tolgoi coal mines, or the combined total of eight years of the national education budget and ten years of the health sector budget.

This loss refers to forest resources of immense value that were never converted into productive assets but instead were left to age, dry out, and become vulnerable to pest infestation. Aged and degraded trees, rather than serving as carbon sinks, release carbon dioxide and contribute to the spread of pest-infested forest areas—an environmental hazard that should not be overlooked.

A 2022 study by the Ministry of Environment and Tourism reported that delays and low effectiveness in pest eradication efforts had allowed harmful insects to spread across around 700,000 hectares. Without effective measures, an estimated 1.1 billion trees could die, and 126,000 hectares of forest stock could degrade. By 2023, the National Statistics Office reported that the area affected by pests and diseases had increased to 1,035.1 thousand hectares.

The ecological value of a single tree is exceptionally high. A single tree delivers economic benefits across multiple sectors. By harvesting trees at the appropriate time and supplying timber to the wood and wood-products market, forests can be improved and rejuvenated, while the construction, manufacturing, tourism, health, and food sectors can all benefit. Rejuvenated forests also produce more fruits, nuts, and other non-timber forest products – another area of economic returns.

III. A TURNING POINT: SHIFTING FROM PROTECTION TO SUSTAINABLE USE

At the United Nations General Assembly on September 22, 2021, President Ukhnaa Khurelsukh stated that ‘the most effective way to combat desertification is to plant trees,’ announcing Mongolia’s commitment to plant one billion trees by 2030 in support of global climate action. This policy brought long-overdue government attention back to the forestry sector, which had suffered from weak governance and mismanagement. It created an opportunity to reassess the current situation realistically and redefine the sector’s future development model. As a result, on July 5, 2022, the Forest Agency was re-established, marking the beginning of reforms in this century-old sector. From that same year, international cooperation also intensified, including the establishment of the Mongolia–European Union “Forest Partnership.”

According to the five-year implementation report of Mongolia’s long-term development policy, “Vision 2050,” the country’s forest fund reached 19.1 million hectares in 2023. Reforested and afforested land increased by 760,000 hectares compared to 2019, and forest cover rose to 8.45 percent. This is encouraging progress.

However, despite this progress, pressures from harmful insects continued to intensify during the same period. This indicates that sustainable forest management is still not being practiced effectively. Therefore, Mongolia urgently needs policy and governance solutions that address forest aging and degradation. This also means Mongolia needs to reduce reliance on imported wood for the domestic wood-processing sector, strengthen domestic production, and ensure proper management of forest assets.

According to a study presented by the Asian Development Bank in 2023, 66.8 percent of Mongolia’s total timber harvest (approximately 1,141,800 cubic meters) is used for firewood, while only 26 percent is allocated for the production of value-added wood products. Wood-processing and furniture factories operating in the aimags and in the capital city rely almost entirely on imported raw materials such as laminated boards and sawn timber. The study also notes that sawn timber prepared by Mongolia’s forestry enterprises generally does not meet the quality standards required by domestic wood-processing industries.

As a result, Mongolia is unable to use the sufficient forest resources—around 70 percent of which could be brought into economic circulation.  These are policy shortcomings.

In 2024, Mongolia earned approximately USD 5.57 million in forest resource utilization fees, the highest amount recorded to date. Yet in 2023, only four percent of total natural resource utilization fees came from forest resources. Meanwhile, the entire timber production sector remains valued at around USD 139.2 million. By comparison, Germany—whose forest area is similar in size to Mongolia’s—has a timber market exceeding 180 billion euros and generates approximately seven billion euros in annual revenue.

Chart 3. Natural resource utilization fees (thousand dollar)

Source: NSO

Chart 4. Breakdown of contributions to natural resource utilization fee revenue (as of 2023)

Source: Environmental Sector Public Expenditure Review, 2024, “Supporting Employment Reform through SDG-Aligned Budget Planning in Mongolia” project funded by the European Union

The factors hindering the development of this sector can be summarized in two words: the lack of sustainable use and governance. There was a time when the forestry sector accounted for around 15 percent of Mongolia’s GDP. In the mid-1980s, total annual timber harvests reached approximately 2.2 million cubic meters, and at its peak, the forestry industry employed between 15,000 and 20,000 people. By 1998, however, the sector’s contribution to GDP had fallen to 0.25 percent, marking a significant decline. Annual timber harvesting subsequently dropped by half, and legal logging has not exceeded 1.1 million cubic meters since.

According to the National Statistics Office, only 696.4 thousand cubic meters of timber were harvested from forests in 2023. Decision-making processes—passing through multiple levels of provincial and soum citizens’ assemblies—have resulted in reduced allowable harvest volumes. This has restricted the ability of timber enterprises to expand and modernize, while simultaneously limiting opportunities for essential forest thinning operations.  This is a turning point for Mongolia where the country needs to shift from ineffective protection-oriented policies—which have failed to protect forests—toward sustainable and responsible forest management.

In the next section, we plan to examine forest sector governance, human resource development, and opportunities for creating greater economic value.