15 February 2025, Ulaanbaatar
The Green Economy Financing Facility (GEFF) Mongolia concluded 2024 with strong momentum, marking another decisive step in building a greener financial landscape across the country. By the end of December, partner financial institutions Khan Bank and XacBank had channeled more than USD 64.9 million in green financing to Mongolian households and businesses, supporting 194 projects that are expected to reduce 59,600 tonnes of CO₂ emissions annually and generate over 700,000 GJ (gigajoules) of energy savings each year. This amount of energy equals the heating needs of around 20,000 traditional Mongolian gers, or the total annual energy consumption of about 12,000 urban households — while the carbon reductions correspond to removing 13,000 cars from the road every year.
“The 2024 results confirm Mongolia’s growing appetite for climate-conscious investment. We now see construction companies, manufacturers and service providers integrating energy efficiency into their business models,” proudly says Mr. Stanislav Dubko, the GEFF Mongolia Team Leader. “Moreover, the demand for sustainable green finance is expanding far beyond the capital with our partner Khan Bank lending through its branches in the countryside”.
Thus, up to 20 percent of loans were issued to the businesses in rural Mongolia in 2024. With nearly one in five loans benefitting rural enterprises, GEFF Mongolia has made a steady progress in extending green finance opportunities to Mongolia’s regions.
Building partnerships and capacity
In 2024, Khan Bank remained the most active GEFF Mongolia partner, disbursing USD 26.7 million through 122 eligible sub-loans. The bank’s Green Banking Team expanded during the year and worked closely with GEFF Mongolia on project assessment, staff training and vendor engagement. Most of the new loans supported energy-efficient construction, manufacturing upgrades and renewable-energy technologies.
A new measure was introduced in late 2024, restricting very small vendor loans below USD 25,000 to be processed only through the GEFF Mongolia Green Technology Selector (GTS), an online vendor registration platform. This upgrade has markedly improved efficiency and quality control. The partner Khan Bank also took significant steps towards digitalisation, announcing plans for its own online “Green Database” of pre-approved technologies to be launched in 2025.
XacBank, meanwhile, reached a key milestone by fully utilizing its first USD 25 million EBRD GEFF loan and beginning deployment of a second facility of the same size. Its green portfolio, totalling USD 30.4 million, includes investments in modern production equipment, high-efficiency buildings, electric vehicles and renewable energy systems.
“XacBank’s progress in disbursing green technology loans shows how targeted engagement and technical support can unlock large-scale green investments. We are seeing a tangible shift in how Mongolian banks view climate finance—as a mainstream, profitable part of their business,” says Mr.Dubko.
A broader transformation of Mongolia’s financial sector
Mongolia’s economy grew by 5.2 percent in 2024, supported by a resilient services sector and renewed investor confidence. The country’s banking industry mirrored this optimism: total assets rose by 25 percent year-on-year, and the national portfolio of green loans reached MNT 1.3 trillion (USD 378 million)—up 9.6 percent in just one quarter. Khan Bank alone accounted for more than half of this amount, confirming its leadership in sustainable finance.
The two GEFF partner banks also made headlines with new international partnerships. In October 2024 Khan Bank issued Mongolia’s first USD-denominated green bond, worth USD 25 million, under a framework aligned with the ICMA Green Bond Principles and the Mongolian Sustainable Finance Association’s taxonomy. The following December, XacBank announced a USD 50 million funding package from the Asian Development Bank and Canada’s Climate and Nature Fund to expand climate finance and MSME lending, with a strong focus on women-led enterprises.
GEFF Mongolia and Gender
Nearly 40 percent of all GEFF Mongolia financed projects were led by women entrepreneurs, underscoring GEFF Mongolia’s commitment to inclusive, gender-responsive green finance that empowers women to lead sustainable businesses and climate resilient communities.
GEFF Mongolia has actively reached out to sub-borrowers and conducted dedicated gender trainings based on the findings of the Facility’s 2022 Gender Baseline Assessment and in full alignment with the EBRD’s policy on gender-sensitive lending. These trainings focused on enabling women entrepreneurs to identify, invest in, and benefit from green technologies and climate-resilient business solutions, helping them enhance competitiveness while contributing to Mongolia’s low-carbon transition.
Throughout 2024, training programmes were organized for large, medium, and small women-led enterprises in partnership with the International Women’s Federation of Commerce and Industry (IWFCI) Mongolia Chapter and MONES – the Mongolian Women’s Fund. This collaboration strengthened the capacity of women-owned businesses to plan and implement sustainable, technology-based investments under the GEFF framework.
Expanding the Green Technology Selector
Throughout 2024, GEFF Mongolia added 65 new technologies and registered 10 new vendors in the GTS, bringing the national database to 922 products offered by 203 local suppliers. The GTS now covers everything from insulation materials and efficient motors to solar equipment and electric vehicles. The online platform (https://techselector.com/mongolia-en/) remains the only open database in Mongolia where local businesses can identify EBRD-approved green technologies.
Looking ahead
As GEFF Mongolia enters 2025, its focus will remain on supporting partner banks, verifying implemented projects, and broadening access to climate-friendly technologies across the country. “Every verified project tells a story of innovation and resilience,” notes Mr. Dubko. “Our goal for 2025 is to ensure that green finance reaches more regions, more SMEs and more women entrepreneurs.”
GEFF Mongolia is implemented by the European Bank for Reconstruction and Development (EBRD) with funding from the Green Climate Fund (GCF) and the Japan-EBRD Cooperation Fund (JECF). The programme enables local banks to finance energy-efficient and renewable-energy investments that help reduce greenhouse-gas emissions and promote sustainable growth across Mongolia.
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