A high-level discussion on strengthening partnership-based cooperation to reduce dependence on energy and oil products, promote renewable energy and develop energy storage systems and digital solutions was held on February 6 at the State Palace.
Opening the discussion, Speaker of Parliament N.Uchral emphasized that Mongolia must keep pace with global trends in green energy development, investment growth and financing, noting that green financing worldwide has increased 40-fold over the past decade and is expected to continue growing at an average annual rate of 21 percent.
Speaker N.Uchral stressed that the country’s development policy must fully align with the global transition to green financing. In this context, he highlighted that the state documents include clear goals to support the green economy, expand renewable energy sources, reduce energy dependence and strengthen national energy security. He also noted that concrete indicators are being established to measure implementation outcomes in line with international indices, with investment projects exceeding 30 billion MNT planned, including major green energy initiatives.
Currently, 77 percent of Mongolia’s total energy production comes from thermal power plants, 22.3 percent is imported, and only seven percent is generated from renewable sources. Speaker N.Uchral warned that this level of renewable energy use is insufficient, adding that while the global average for electricity line losses is six percent, Mongolia’s rate stands at 14 percent. He further pointed out that annual fuel imports amounting to 2.2 billion USD, a low number of electric vehicles, and severe air pollution indicate inadequate preparedness for the green transition.
The Speaker also introduced initiatives aimed at achieving energy independence for herder households, expanding carbon credit mechanisms, and implementing the “Sunny Mongolian Herder” program to support trade with Eurasian countries. He further noted that opportunities have emerged to reduce or exempt taxes on livestock products such as leather, wool and cashmere under a three-year agreement with the Eurasian Economic Union. He highlighted herders’ proposals to participate in carbon markets by improving pasture management and restoring approximately 30 million hectares of land, thereby reducing emissions and generating income through carbon credits. He emphasized the need to establish policy development, measurement, reporting, and verification systems to support this initiative.
Resident Representative of the UNDP in Mongolia Matilda Dimovska delivered welcoming remarks, describing the Parliament’s renewable energy resolution as a historic decision. She emphasized the importance of placing households and communities at the center of energy reform and making clean energy more accessible. She noted UNDP’s ongoing support to Mongolia in policy analysis, investment planning and risk assessment related to air pollution, energy poverty, and climate change. She also introduced a pilot project on renewable energy heating and insulation solutions for ger area households, currently covering 150 households and expected to reach 600 households by 2028.
Minister of Industry and Mineral Resources G.Damdinnyam highlighted the risks posed by Mongolia’s continued dependence on imported oil products to economic production and national security. He stressed the need to diversify energy sources and develop sustainable, environmentally friendly production systems based on domestic resources. He reported that the oil refinery is scheduled to commence operations in 2028 and emphasized the importance of intensifying oil exploration and improving fuel quality standards, including the transition to fuels meeting Euro 5 standards. He also noted that, under Resolution No. 119, plans are underway to install 100,000 solar lights, develop 100 MW solar projects in provinces and soums, and introduce 100,000 electric vehicles.
During the discussion, the governors of Bayankhongor, Bayan-Ulgii, Khentii, Uvs, and Dornod provinces signed a Letter of Expression of Interest with the Ministry of Energy. The document aims to support renewable energy projects through simplified procedures and improve the regulatory and legal framework for their implementation.
