Mongolia’s Taxonomy Journey
Presented by:
Nomindari Enkhtur, CEO of the Mongolian Sustainable Finance Association, Advisor to the IFC Sustainable Banking and Finance Network (SBFN)
2022
Sustainable finance implementation
Тогтвортой санхүү
Mongolian Sustainable Finance Initiative was launched by the Mongolian Bankers Association (MBA).
MSF Principles (8) and Sectoral guidelines were developed. Commercial banks began to adopt Environmental and Social Management Systems.
“Mongolian Sustainable Finance Association (MSFA) member-serving NGO” was founded by commercial banks and MBA, to expand activities into to non-bank FIs and the wider business community.
“National Green Taxonomy” was approved by Financial Stability Council, and BoM started collecting green loan statistics from banks.
“Mongolia Green Finance Corporation” was established, and its investment proposal of $50mln has been approved by the Green Climate Fund.
To become a green finance and investment knowledge hub in the region.
The National Sustainable Finance Roadmap was approved by the Financial Stability Council and Integrated National Finance Framework was endorsed by the SDG Council.
Financial market development programme 2025 was approved, including a pillar on sustainable finance.
Green bond regulation was approved by Financial Regulatory Commission (FRC).
2013
2015
2017
2018
2020
2019
2025
2021
2022
ESG and sustainability reporting guideline and voluntary directive on ESG disclosure was approved by FRC and Mongolia Stock Exchange,
ESG integration guideline for microfinance institutions was approved by FRC.
MSFA
ТоС Холбоо
Banking + ESG
green finance
wider financial sector
Mongolia Green Taxonomy vs. SDG Taxonomy
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
2018
Approved by the Financial Stability Council
2022
Under development
Categories of the draft Mongolia SDG Taxonomy
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
4
Categories of the draft Mongolia SDG Taxonomy
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
5
Applications
GREEN TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
Taxonomy development
Principles
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
PRINCIPLE 1:
Contribute to national policies and targets
PRINCIPLE 2:
Easy to use
PRINCIPLE 3:
Empower vulnerable groups
PRINCIPLE 4:
Align with international standards
PRINCIPLE 5:
Comply with ESG standards
PRINCIPLE 6:
Continuous review and development & stakeholder engagement
New Revival Policy
Vision 2050
Nationally Determined Contributions
Easy to understand and practical to use in order to support sustainable finance market development
Children, youth, people with disabilities, elderly, herders, internal migrants
i) Broad conceptual definitions
ii) Regulatory and legislative approaches
iii) Market-led standards
iv) Financial institutions’ definitions
Mongolian Sustainable Finance Principles and Sector Guidelines
Banks’ own E&S policies
Review and update the taxonomy every 2 years in line with market, technology and policy developments and involve large range of partners
Interoperability
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
Implementation of the Green Taxonomy
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
9
Implementation of the Green Taxonomy
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
10
National Sustainable Finance Roadmap
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
ROADMAP 2030
TO INCREASE THE SHARE OF GREEN/SUSTAINABLE LOANS UP TO
Implementation
TAXONOMY: SHARING MONGOLIA’S EXPERIENCE
12
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THANK YOU
Any questions?
To receive a copy of the taxonomy or ask any questions, please contact:
nomindari@toc.mn
nenkhtur@ifc.org