Background

Mongolia's economy, traditional culture, and livelihoods are highly vulnerable to climate change due to its geographic location, harsh weather, and fragile ecosystems. The reliance on pastoral livestock and rain-fed agriculture makes Mongolia particularly susceptible to extreme weather events like dzuds and droughts. With one of the fastest rates of global warming, temperatures in Mongolia have risen over 2°C above the global average, causing significant shifts in climate patterns that are already impacting lives and livelihoods. Mongolia has shown a strong commitment to tackling climate challenges, ratifying the Paris Agreement in 2016, submitting its Third National Communication to the UNFCCC in 2018, and updating its Nationally Determined Contributions (NDC) in 2020. The updated NDC sets a target to cut greenhouse gas emissions by 22.7% by 2030, with an estimated US$11.5 billion required for implementation, including US$6.3 billion for mitigation and US$5.2 billion for adaptation. Prioritizing these investments in government budgets and public plans is crucial for achieving these goals.

Objectives

The project aims to strengthen climate-aligned public investment management for the Ministry of Economy and Development and the Ministry of Finance, supporting the integration of Nationally Determined Contributions (NDC) and National Adaptation Plan (NAP) targets into public investment planning, particularly within the energy and agriculture sectors. Ultimately, it seeks to increase the proportion of public investments aligned with climate objectives.

Key Results

Output 1: Climate-aligned Public Investment Management improved.

Output 2: 15 Climate Investment projects developed for integration into the public investment programme 2026-2030.