SWITCH-Asia

The Challenge

Rapidly urbanising, Mongolia has inherited from the socialist inefficiencies and lack of awareness related to energy production and consumption, leading to high costs, almost exclusive usage of fossil fuels, poor efficiency and major air pollution and health concerns in all urban areas. As a source and first victims of pollution, ger districts dwellers remain at the center of the problem and the solution. Focusing on the building and construction sector, this project will address both Energy Efficient retrofitting of the existing stock of non-engineered individual houses in Mongolia and the construction of new houses, following the current trend of in-migration to cities in the country. Involvement of women as agents of change, for instance, women engaged in advocacy, awareness raising actors, entrepreneurs and technicians will be key in achieving desired changes in construction, housing and household energy management habits.

The Objectives

Promote the transition to a low carbon housing sector in Mongolia's cities, by working with consumers, households, companies, financiers, technicians and the public sector, leveraging finance and technical solutions, and increasing awareness. The project aims to diversify the offer of Energy Efficient solutions, strengthen all levels of Energy Efficient value chains, expand geographically to province capitals, and fine-tune and spread a replication mechanism for national handover and implementation, including the qualification of options for further access to finance.

The specific objectives include: 

• To contribute to the uptake of less polluting and more resource-efficient practices in housing in Mongolia;
• To improve air quality and reduce GHG emissions in urban Mongolia through the scale-up of conducive and inclusive access to finance and to Energy Efficient solutions in the individual housing sector.

The Way Forward

• Women and men of the Ger areas are capacitated to be actors of change to tackle energy inefficiency in their houses, neighborhoods, and at the national level;
• A large range of technical solutions is available to improve the energy efficiency of most individual housing situations: retrofitting, new house, or Ger (felt tent);
• Households and MSMEs have access to appropriate financing options, in the form of green loans and subsidies, to support their transition to energy efficiency;
• Craftsmen and women and MSMEs of the construction sector are capacitated in energy-efficient construction techniques, materials, and equipment, thanks to newly established MSME focused and regional branches of the dedicated national professional association (MNCA);
• A comprehensive methodological and technical package is tested and available for replication in every city of Mongolia;
• Ownership of the Project is handed over to a public-private body as a vehicle achieving nationwide scale-up with demonstrable effects on people's environment, economy, and well-being.

Relation to European Green Deal, Circular Economy and Climate Change

The project is directly related to both EU priorities and those of the Government of Mongolia outlined in the Multi-annual Indicative Programme 2021-2027 of Mongolia:

• Sustainable growth and jobs: by supporting MSMEs capacities and increasing demand for environmental goods and products. With GCF-funded Mongolian Green Finance Corporation the project promotes green loans for EE in housing, carrying a transformational potential for the whole national construction sector, with 15+ years perspective.
• Science, technology, innovation and digital networks: by developing and labializing insulation solutions, implementing innovative products, using new technologies in our study, reaching out to citizens through awareness campaigns, and connecting stakeholders (Banks, Households, SME, Building companies, among others) through digital technologies.
• Governance, Peace, Security and Development: by working closely with the Ministry of Construction and Urban Development to achieve the target to decrease by 40% the heat loss of the building sector by 2030.

In line with European Green Deal priorities, the SOAP project continues to improve the well-being and health of Mongolian citizens and future generations by acting on the following targets: climate, environment, energy, finance and regional development. Furthermore, the project contributes to technological innovations completed by future-proof jobs and skills training to improve the energy efficiency of the building sector, ultimately ensuring a better fresh air in Mongolian cities.