31 January 2024, Ulaanbaatar
The portfolio of green loans under GEFF Mongolia issued to sub-borrowers through the project’s partner financial institutions, Khan Bank and XAC Bank, reached USD 23.2 million by the end of 2023. Cumulative energy to be saved annually from investment in GEFF-funded green technologies reached almost 300 thousand GJ annually which corresponds to almost 26 thousand tons of avoided emissions of greenhouse gases per year.
Green loans under GEFF Mongolia are available to both companies and individuals, to help them in acquiring green technologies. The financed projects are spread between various sectors – from the construction of green residential and commercial buildings to manufacturing, including the replacement of outdated production equipment with new energy efficient technologies and agriculture. GEFF Mongolia also provides loans to producers and vendors of green technologies: construction materials, LED lighting, white appliances, electric vehicles, and many more. The mix of the projects in the portfolio is well-balanced: 57% of projects belong to SMEs vs large companies and 40% of projects belong to women-led businesses as of the end of 2023.
GEFF Mongolia actively uses EBRD’s Green Technology Selector (GTS) to streamline the financing of standard investment projects. Green Technology Selector is a web-based online list of pre-approved technologies that can be financed by partner banks without further assessment. A team of international and local engineers from the Project Consultant Team is working with the Mongolian vendors to identify, assess, and list additional eligible green technologies on the GTS. By the end of 2023, a total of 755 pre-approved green technologies from 132 local vendors were available on the GTS for Mongolia.
To ensure gender parity and inclusion, in 2023 GEFF Mongolia developed and delivered Mongolia-specific gender materials and trainings for its partner banks. A set of recommendations from GEFF Mongolia is meant to aid financial institutions in enabling equal access for men and women to finance investments in green technologies.
Overall, USD 137 million of EBRD funding is available to the current and potential partner financial institutions under GEFF Mongolia for on-lending Mongolian businesses and individuals willing to invest in green technologies.
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