The Mongolian government and EIB Global (a unit of the European Investment Bank, EIB) have signed a memorandum of understanding to accelerate the country’s transition to green energy and diversify its energy mix, according to the EIB website.
“Diversifying our energy mix and ensuring reliable and affordable electricity supply for households and businesses is a national priority. The partnership with EIB Global and the European Union, which will raise up to €1 billion, will help Mongolia unlock its renewable energy potential, support private sector development, modernise energy systems and create jobs in the green economy,” the statement quoted Mongolian Deputy Prime Minister Dorjhand Toghmid as saying.
According to Vice President of EIB Global Teresa Czerwinska, Mongolia has great potential in the field of renewable energy, which will ensure stable development of the country and climate change resilience. Cooperation under the Global Gateway programme will help accelerate the country’s transition to green energy and strengthen its energy security.
According to the Bank, the final investment will depend on the portfolio of projects developed jointly by Mongolia and the European Union.
Mongolia has been co-operating with the EIB since 2014 and has received a total of €144 million in loans and grants for green energy projects.
Mongolia is currently experiencing unfavourable environmental conditions due to high domestic coal consumption, despite the fact that most of the resource is exported. In this regard, the authorities are implementing a number of national programmes to reduce emissions of pollutants into the atmosphere and projects to develop renewable energy – in particular, the construction of wind turbines and solar power plants.
By 2030, the Mongolian authorities aim to increase the share of renewable energy in the country’s energy mix to more than 30 per cent and to reduce coal consumption.