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From Waste to Wealth: Empowering SMEs to Lead Mongolia’s Green and Circular Transition

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From Waste to Wealth: Empowering SMEs to Lead Mongolia’s Green and Circular Transition
Country: Mongolia
Business innovation, policy advancements, and community-driven solutions

Mongolia is taking bold steps toward sustainability by embracing circular economy practices, eco-labeling, and enhanced waste management. With the support of the EU-funded SWITCH-Asia projects, Switching On the Green Economy (SOGE) and Sustainable Plastic Recycling in Mongolia (SPRIM), the country is fostering a greener, more resilient economy through business innovation, policy advancements, and community-driven solutions.

Globally, only 7.2% of materials are recycled, creating significant environmental challenges, including climate change, biodiversity loss, and pollution. Mongolia faces an even greater challenge, ranking among the top 10 countries in the world for per capita plastic waste generation (CCR Mongolia, market study 2022). Research reveals that the average Mongolian citizen consumes 137.58 kg of plastic waste annually, posing a serious environmental burden.

The SOGE and SPRIM initiatives are working to reverse this trend by enhancing plastic recycling systems, supporting businesses in adopting sustainable practices, and influencing key policies to regulate waste management. By pioneering eco-labeling standards, guiding businesses toward waste reduction, and engaging communities in sustainable plastic recycling, these initiatives are shaping Mongolia’s path to a more circular economy.

There are over 80,000 registered businesses in Mongolia, 86% of which are SMEs. SOGE has reached approximately 1,000 SMEs and MSMEs over the past three years, accelerating the adoption of circular economy principles. Through the introduction of eco-labeling, the project is fostering efforts to minimize waste and optimize resource use through smart product design, longer product lifecycles, and enhanced recycling strategies.

Introducing Green Certification: A Game-Changer for Mongolia

In the absence of eco-labeling frameworks, SOGE has furthermore led the development of internationally recognized green certification systems, playing an important role in Mongolia’s transition toward a green and sustainable economy.

Through initiatives such as its Accelerator Programme, the project has empowered approximately 1,000 SMEs and MSMEs to integrate sustainable practices into their operations. These businesses receive tailored guidance on optimizing energy consumption, improving waste management, and restructuring resource use to minimize environmental impact.

One success story is Eden LLC, which significantly reduced its greenhouse gas (GHG) emissions after SOGE’s analysis identified transportation as a key emissions source. By redesigning delivery routes, the company cut emissions andreduced driver workload by several hours. Eden LLC has since expanded its sustainability efforts by adopting waste recycling, glass packaging, and greywater systems, positioning itself as a model for other businesses.

Scaling Eco-Labeling with Policy Support

Led by People in Need (PIN) in partnership with Caritas Czech Republic (CCR), Development Solutions NGO (DS), and Mongolian Sustainable Finance Association (MSFA), SOGE’s eco-labeling certification, aligned with international standards, incentivizes sustainable practices by enhancing market competitiveness and unlocking green financing opportunities. Thanks to the project’s advocacy, five key environmental declarations and labeling standards have been officially approved.

"Thanks to the Switching On the Green Economy (SOGE) project, we have gained knowledge about eco-labeling, circular economy standards, and best practices. We now understand how to integrate these into our operations and meet global export standards," says Kh. Batbayar, Founder of Iromic LLC, a producer of traditional Mongolian chili oil. "Once eco-labels become available, we are committed to meeting their criteria and proudly displaying them on our products."

In December 2024, the National Green Challenge competition recognized three MSMEs for their leadership in sustainability and their ability to communicate their environmentally friendly practices effectively. Building on this success, SOGE is collaborating with Mongolia’s Ministry of Environment and Climate Change (MECC) to develop a comprehensive, long-term eco-labeling program that will continue beyond the project's completion.

Transforming Waste Management through Community Action

A robust plastic recycling system is a key prerequisite for successful eco-labeling. The EU funded SWITCH-Asia SPRIM project, has played a key role in strengthening Mongolia’s waste management infrastructureThe project worked closely with the MECC to amend the Law on Waste, introducing an Extended Producer Responsibility (EPR) mechanism to hold producers accountable for waste management. This policy shift has already fostered successful community-driven waste sorting initiatives, such as the Altain Baraa Housing Association (HOA) in Ulaanbaatar’s Bayanzurkh District.

Thanks to SPRIM’s efforts, 80% of residents in the district now actively sort their waste, diverting over 20 tonnes of plastic from landfills to local recycling companies in the past three years.

"Over the past four years, we have worked closely with the SPRIM project to educate and engage Ulaanbaatar households on waste sorting," says Sh. Narantuya, Chair of Altain Baraa HOA. "We conduct training sessions, awareness campaigns, and even recognize residents who consistently sort their waste. Initially, fewer than five households participated—today, 80% of our community is involved. In the past four years, we have delivered over 20 tonnes of plastic bottles to collection centers and local PET plastic recycling factories."

A Unified Vision for a Circular Economy in Mongolia

The SOGE and SPRIM projects demonstrate that low-carbon, circular economy initiatives can drive real change. While SOGE focuses on eco-labeling and green production, SPRIM is addressing waste management and recycling, together, they share a unified vision:

  • Fostering a circular economy
  • Reducing environmental impact
  • Scaling sustainable practices across industries

 

SPRIM’s policy successes and SOGE’s advances in certification and business engagement highlight the potential for nationwide adoption of circular economy principles. Through innovative business models, policy advocacy, and community-driven solutions, these efforts directly align with Mongolia’s Nationally Determined Contributions under the Paris Agreement, reinforcing the country’s commitment to sustainability and climate action.

 

Written by:

People in Need Mongolia (Enkhtsatsral Namkhaijantsan, Amarjargal Dagvadorj, Purevbat Bolorchuluun)

Caritas Czech Republic Mongolia (Solongo Munkhjargal, Tsendsuren Boldbaatar)