The “SOAP II” project, funded by the European Union’s SWITCH-Asia Program and the FRESH Project supported by the French Development Agency (AFD), has been implemented in Mongolia to reduce air pollution by improving the energy efficiency of detached houses.

In June 2025, Geres International NGO organized a study tour to France and Belgium (June 21-29). The visit enabled Mongolian policymakers, financial institutions, and housing sector stakeholders to explore European experiences in energy-efficient housing retrofits and financing mechanisms. This exchange provided valuable insights to address Mongolia’s challenges, particularly in ger areas, and opened new opportunities for collaboration to scale up retrofitting, reduce air pollution, and cut greenhouse gas emissions.

Learning from France and Belgium: Best Practices

The study tour began in Paris, where the delegation examined strategies and innovations in energy efficiency, affordable housing, and inclusive urban development. In Brussels, the focus was on financial mechanisms, policy frameworks, and large-scale housing retrofits, with visits to exemplary housing projects and European institutions.

An Ecosystemic Approach

European experiences show the importance of national housing agencies playing a central role in retrofitting and energy efficiency, as well as integrated and enforceable frameworks:

●          ANAH (French National Housing Agency): Manages retrofitting subsidies for low- and middle-income households, condominium associations, all over France. Its 2024 budget reached EUR 3.7 billion, reflecting the scale of state commitment.

●          SOLIHA: France’s largest non-profit housing network, providing end-to-end renovation support (technical, financial, administrative) tailored for vulnerable households, the elderly, and people with disabilities.

●          Agence Parisienne du Climat (Paris Climate Agence): A “one-stop shop” offering technical advice, financial guidance, and post-renovation monitoring. Its digital platform CoachCopro.com helps condominium owners design and finance renovation projects.

●          In Belgium, the SLRB (Brussels-Capital Housing Company) and Comensia demonstrated how long-term planning and coordinated financing can transform social housing, combining heritage preservation with modern energy efficiency standards.

Inclusive Financing and Balanced Incentives

●          Experts emphasized that sustainable retrofit programs require both strong financing tools and balanced incentives:

●          Inclusive Financial Mechanisms – Tools that allow low- and middle-income households to access retrofits.

●          Balanced Incentives – Support for both supply-side actors (builders, engineers, energy service companies) and demand-side actors (households).

Innovative models such as Energiesprong in France illustrate how prefabricated insulated walls, integrated solar roofs, and performance guarantees can deliver net-zero homes. Although upfront costs remain a challenge, these approaches show how scale and standardization can lower long-term costs.

European consulting firm Climact underlined that subsidies alone are not enough: innovation, skilled labor, and behavioral change are equally crucial.

Opportunities for Mongolia

During the tour, the Mongolian delegation presented the country’s pressing issues: inefficient housing in ger districts, severe winter air pollution, and financial barriers for households. Exchanges with the European Investment Bank (EIB), the European Commission (DG INTPA, SWITCH-Asia), and AFD highlighted potential avenues for cooperation and investment.

The European Commission also announced future opportunities that Mongolia could leverage to scale up housing retrofits and sustainable urban development.

Conclusion

The study tour demonstrated that successful retrofitting requires more than subsidies: it relies on a strong ecosystem of policies, financing tools, skills, and innovation.

●          France’s ANAH, SOLIHA, APC, and AFD showcase how public policies, local actors, and civil society can work together to make retrofits affordable and inclusive.

●          Belgium’s SLRB and Comensia highlight the role of social housing as a lever for equitable and sustainable urban development.

For Mongolia, adapting these approaches offers a clear path to:

●          Expand retrofitting in ger districts and urban housing,

●          Bridge financing gaps through inclusive tools, and

●          Build strong partnerships with European and international institutions.

With these insights, Mongolia is well-positioned to accelerate its energy transition, reduce air pollution, and improve the quality of life through better-insulated homes.

Key Takeaways for Mongolia

1. Ecosystemic Approach – Integrate enforceable housing-sector policies and regulations to ensure long-term sustainability.

2. Inclusive Financial Mechanisms – Develop financial instruments tailored to low- and middle-income households.

3. Balanced Incentive Systems – Support both builders and households to create a functional and sustainable retrofit market.

For more information about SOAP Project:

+ 976 75052000

“ДУЛААН ШИЙДЭЛ ТӨСӨЛ”

dulaanshiideltusul@gmail.com

https://dulaalga.mn/