Page 8 - AsiaElec Week 25 2021

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Mongolia’s FRC approves regulation

to boost green bond finance

MONGOLIA MONGOLIA’S Financial Regulatory Commis- Nationally Determined Contribution (NDC)
sion (FRC) board has approved a regulation target for a 27.2% reduction in greenhouse gases
drawn up to tackle environmental challenges in by 2030. According to an IFC study, $11.5bn in
the country by helping to grow green finance. climate investments will be required to achieve
The FRC has signed a memorandum of this new target.
understanding with the International Finance “Mongolia’s geographic and climatic condi-
Corporation (IFC), a sister organisation of tions offer unique financing opportunities for
the World Bank. The IFC assisted the FRC in projects that support renewable energy, energy
drafting the regulation on the issuance and reg- efficiency, green buildings, climate-smart agri-
istration of green bonds in line with the interna- culture, and clean urban services,” said Qamar
tionally recognised Green Bond Principles. Saleem, IFC’s regional manager, advisory ser-
The FRC has approved the regulation as part vices for financial institutions group in Asia and
of the newly enacted Company Debt Instrument Pacific. “We’ve already seen interest from finan-
Registration Regulation. cial institutions and other organizations to invest
As yet, no green bond has been issued in in green bonds to tap into the climate and green
Mongolia. However, there is interest in issuing finance opportunities in the country, which
green bonds in the country, with the FRC refer- can help deliver a cleaner, more energy efficient
ring to estimates that Mongolia may have around and sustainable environment for the people of
$1bn in green investment demand annually. Mongolia.”
“The government of Mongolia has intro- Mongolia’s harsh climate and heavy reliance
duced several policies and commitments to on coal, combined with low energy efficiency,
build a low carbon, climate-resilient future for contributes to the country’s high annual per cap-
the country. This latest move will help open up ita greenhouse gas emissions, relative to other
a market for green finance,” said Bayarsaikhan countries with similar levels of economic output
Dembereldash, chairman of the FRC. and income. Financing from green bonds could
At a Climate Ambition Summit held last help spur renewable energy projects as well as
December, Mongolia committed to a higher investments in energy efficiency. ™

P8 www. NEWSBASE .com Week 25 23•June•2021