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FROM PLANNING TO ACTION

Best Western Premier Tuushin Hotel,

Ulaanbaatar, Mongolia

November 25,2016

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suSTAtNAEtt 0!vIt0FMINT 2030:

FROM PLANNIN6 IO ACTION

0rkhon 0ncn, Fresident

of

the

$&nnqr./,ianP,a'l"ke:vs Nassaeiatian

"We have realized

that

sustainable development is

not

only an important topic

for

countries that are largely affected by climate change. lt is a global commitment and a serious goal for the prosperity of our future. Realizing the potential _role of the Mongolian banking sector in the sustainable development

ofthe

country, banks have introduced the Mongolian 5ustainable Finance (ToC) Principles that are voluntary implemented starting from January 201 5. During the past 3 years, Mongolian banks worked together and have started assessing

and

managing

the

environmental

and

social (E&5) risks

of their

^projects according to international standards. During this important event, we enc0urage and call for the coalition of the public, private and widerfinancial sector on this important initiative.

We hope the next phase of theToC lnitiative

will

be the establishment of a green credit fund providing the opportunity for ^Fls to effectively support environmentally friendly and socially responsible projects. We invite you to join _us for the Mongolian 5ustalnable Finance Forum 201 6 and contributetothe discussions to achievethe 2030 sustainability agenda."

sr. Oyunkhoral llulamsluren, Memher of ParliamEnt, Minister of

Environment

and

Tsurisrn

"The

Ministry of

Environment and Tourism ^(MET) has supported

the

Mongolian Sustainable Finance

lnitiative from its

inception given

the

importance

of

^public, private partnership and

the

engagement

of

businesses and financial

institutions in

^promoting sustainable, green development practices and principles among the key economic sectors

of

Mongolia. MET provides policysupportto _the Initiativeand workstogetherwith the MBAand international partners through its contribution to the ^green credit market assessment, green

credit fund

concept

development, international knowledge

exchange

and

capacity development

activities.

Furthermore, we are planning to introduce a supportive legal and regulatory environment through green tax incentives and green public procurement systems that promote envir0nmental and sociallyfiiendly projects.

We

will

also closely work

with

the banking and finance sector to raise and leverage development finance for the achievement of the national sustainable development 2030 aoenda."

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Tuyen Nguyen, Resident

Representative forMongolia,

IFC

"With the support ofIFC-backed Sustainable Banking Network,28 member countries around

the world

are connected

to

share experience and good practices

in

developing national sustainable finance framework.

lt

is impressive to see how much the Mongolian Sustainable Finance Initiative has achieved and the clarity to go forward considering this is a private sector led voluntary initiative. At lFC, we are strongly committed to continue supporting Mongolia's sustainable fi nance through our global expertise and local knowledge,"

Dr. Frank

Rijsberman, Director-General,

Global Green

Growth Institute

"Joint

publicprivate

led green financing must target and scale-up businesses

that

reduce natural resource intensity

while

generating

tangible

social

and

economic benefits. The proposed Green

(redit

_Fund and pipeline of green bankable projects appear

well

placed to accelerate Mongolia's green economy and increase competitiveness."

Mr.Asad

Naqvi,Acting

Head GEAS,

PaitfershipforAction

on Green Economy(PAGE)

"Mongolia _{was the} first country to join the Partnership for Action on Green Economy (PAGE).

PAGE partner countries from across

the

^globe look

to

Mongolia as a role model for policy development

on

green economy, linkage

and

coordination between policy makers and financial sector to achieve sustainable development goals and objectives, and catalyzing key partnerships

that

cut across public, private and

rivil

society secton. PAGE is proud

to

be a humble partner

in

Mongolia's impressive pursuit

to

develop a national framework under which social, economic and financial policies and practices serve as drivers of sustainability and social inclusion, leading to achievethe Sustainable Development Goals."

Mt AmgalanAltangerel,Projectdirector,EducationforSustainableDevelopment

"Education is essential to sustainable development. Mongolian people need to learn their way to sustainability. 0ur cunent knowledge base does not contain the solutions to contemporary environmental, societal and economic problems. Today's education is crucial to the ability

of

present and future leaders and communities to create solutions and find new ^paths to a better future."

SUSTAINABLE FINANCE

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susrAhlAEtt 0Ivtt0PMINT 2030:

FROM PLANNING TO ACTION

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A

key milestone

of

Mongolia's

transition

towards

an

inclusive green economy was

the

adoption

of the

National Green Development Policy ^(NG DP) by the Mongolian Parliament in June 2014, In Jan uary 201 6, the Government approved the Action plan for the implementation 0f the NGDP

that

specifically seeks to promote investment in environmental protection, human development and clean technology and leverage tax credit and incentive mechanisms to finance green economy. To achieve Mongolia's green development targets, as one

ofthe

pathways towards its broader Sustainable Development Vision 2030 and implementation of its NationalDetermined Contributions ^(NDCs) underthe Paris Climate Agreement, a substantial increase in green investment is required.

With the majority offunding being channeled through banks, the Mongolian banking sector is ideally placed to help leveraging private sector investment

in

climate-telated projects

and

contribute

to the

achievement

of the

NGDP, Recognizing this responsibility, Mongolian banks, convened by the MBA, have voluntarily committed to embark on a journey together to define and operationalize sustainable finance and leverage their efforts to play a role in driving green economic growth since 201 3. The Mongolian Bankers Association ^(MBA), along with other key stakeholders such as the Ministry of Environment ^(MET), the (entral Bankof Mongolia, the Financial Regulatory (ommission, lF( and FMO, has been working to introduce green and inclusive lending practices and strategies in the Mongolian banking sectorthat resulted in the launch

ofthe

Mongolian Sustainable Finance (To0 Principles and Sector guidelines (mining, manufacturing, construction, agriculture) starting flom January 2015. All the banks have already implemented the principles by establishing environmental and social management sy$ems ^(E5M5)

within their

banks and integrating environmental and social risk assessments in their lending and investment operations.

To effectively make the shift to sustainable banking and finance practices, banks require an enabling national green finance framework that provides the right economic incentives to support and invest in green projects. The main challenges

with

green finance include lack of equity for projects, lack of clear definition and criteria for green projects, low green project assessment capacity and knowledge of local disbursement channels and missing or little experience of local project developers. Responding to this need, partners of the Mongolian Sustainable Finance Initiative met in November 2015 at the third Mongolian Sustainable Finance Forum

in

Ulaanbaatar

and

agreed

to

advance

the

concept

of

developing

a

national financial vehicle

for

green development with the support from the Global Green Growth Institute ^(GGGI), Partnership for Action on Green Economy (PAGE- UNEP Fl) and the Education forSustainable Development ^(E5D).

A Mongolian Green

(tedit

FundWorking Group (MG(FWG),led by MBA and

MElwith

representatives of all 15 banks in Mongolia, Ministry of Finance, Bank of Mongolia, UB

(ity

Municipality, National Chamber of (ommerce and lndustry was established and has approved a work plan for 2016-2017 . As the first phase of the MGCF initiative, the MBA

with

the support of international partners, has conducted a market assessment

ofthe

demand for green project lending, reviewed the legal, regulatory and tax environmentforthefund and developed a concept note forthe Mongolian Green (redit _Fund.

To introduce the results

ofthe

above mentioned activities and discuss the way forward for the Mongolian Sustainable Finance Initiativeand Green Credit Fund,the MBA in cooperation with MEI lFC, FM0, GGGI, PAGE, ESD,the Ministryof Finance, the Bank

of

Mongolia,the FinancialRegulatory(ommission, UlaanbaatarOty Mayo/s 0ffice, the Mongolian National(hamberof (0mmerce and lndustry (MN(C|) and Golomt bank, ^is organizing the Mongolian Sustainable Finance Forum 2016 on November 25 at the Best Western Premier Tuushin Hotel in Ulaanbaatal Mongolia. This yea/s _event is being organized within a broader framework event hosted by the Ministry of Environment and Tourism, Ministry of Finance and the Prime Ministe/s Office under the theme

"Sustainable Development 2030: From Planning to Action'i

We sincetely welcome regulators, banks and other Fls, DFls and international organizations, clients, businesses, civil society representatives

and

E&5 experts

to join

us

for this important

event

and

contribute

to the

discussions

on (1)

effectively transforming the concept 0f the MGCF into action and implementation

(2)a

collaborative approach to introduce sustainable financing to the wider financial sector, and (3) engagement

ofthe

private sector in advancing the sustainable development agenda ofMongolia.

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SUSIAINABTE DTVTTOPMTNT 203O:

IROM PLANNIN6 TO AOION

LOOKING BA(K TO THE OUTCOME5 OT THE PAST EVENTs...

Mongolian Sustainable Finance Forum 2013 - Agreement t0 implement the Mongolian

Sustainable Finance lnitiative and establish a Working Group for sustainable finance, to be convened by the Mongolian Bankers Association, which would work towards a joint declaration on sustainable finance by Mongolian banks.

Mongolian Sustainable Finance

(Io0

Forum 2015 - _Decision to cooperatively work towards developing a green financing vehicle that would promote the implementation of the National Green

Development Poliry and the Mongolian Sustainable tinance lnitiative.

- Establishmentofa working group with

representatives ofthe public and private sector, and international organizations.

Mongolian Sustainable Finance

(Io0

Forum 2014

- _Approval ofthe Mongolian 5ustainable Finance ^(ToC) Principles and 4 sector guidelines for mining, construction, agriculture and manufacturing.

- Publir announcement ofthe launch oftheToC Principles from January 2015.

Mongolian Sustainable Finance (IoC) Forum 2016

Expected resultsl

-

Discussion to bring the ToC Initiative to the next stage and enhance collaborations with finanrial regulators and the non-banking financial sector.

-

De(ision to (ooperate and accelerate the proces of establishing the Mongolian Green Credit Fund.

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09:30 - 09:50 PR0GRAMMt

/draft/

08:00 ^- 09:00 Registration

09:00 - 09:10 0pening remarks 0.0rkhon, President ofthe MBA

D.0yunkhorol, Minister of Environment and Tourism

09:10 - 09:20 Address by special guest of honour J.Erdenebat, Prime Minister ofMongolia /tBC/

09:20 - 09:30 Video: Golomt bank - To( Lead 0rganization 2016 Presentation: Mongolian 5ustainable Finance ^(ToC) Initiative

-

annual progres, accomplishments, vision to go forward, engagement with the Central bank and the non-banking financial sector

09:50 -'10:10 Presentation: The case of Rwanda's national fund Alex Mulisa, Principal Program Manager of F0NERWA for sustainable development (F0NERWA) /invited by GGGI/

10:10 - 10:40

Networking break

Visual exhibition of potential MG(F pipeline projects

10:40-11:00 B.Naidalaa, Member of the MBA Steering Committee,

Advisory Consultant of GGGI

11:00 - 12:45

2.Ministry of Environment and Tourism 3.Ministry of tinance

4.Bank ofMongolia

5.Financial Regulatory Commision 6.tFC

7.tM0 8.GGGI 9.PAGE 10.E5D

Moderator: B.Naidalaa

Announcement

oflo(

lead Organization 2017 U.Ganzorig, (E0 of Golomt bank l3:00 ^- 14130

14:30 - _14:50 PAGVMMCG

l4:50 - 15:00 Educational fot Sustainable Development

l5:00 - 16:00

Panelists:

1. Ministryof (onstruction and Urban Development 2. Energy Regulatory Commission

3, Mongolian National Chamber ofCommerce and Industty 4.GtZ

5. Golomt bank Business representative 6. 5ME representative

Moderator: GGGI

16:00 - 16:15

U.Ganzorig, Chair of the To( Steering Committee, CE0 ofGolomt bank

Discussion session:

Moving ahead: Mongolian 5ustainable Finance Initiative and Green Credit Fund

Presentation:

Green credit market potential in Mongolia - Market assessment for green credit - Potential pipeline Droiects for MGCF Presentation: Green credit criteria development and capacity development for project developers and Fls

Session: Private sector engagement in sustainable development and green financing opportunities

l8:00 - 20$0 By invite only: Evening rereption

J.Unenbat, CEO and Secretary-General of MBA

,$#

SUSTAINABLE FINAN(E

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SUSIAINABI.T DTVEI.OPM ENT 203O:

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MAIN TOPIC5TO BT (OVERRED

.

Alignment

ofthe

National Green Development Policy and the Mongolian Sustainable Finance (To() Initiative

.

lmplementation of the Mongolian Sustainable Finance (ToC) Initiative in 2016

.

Vision

ofthe

Mongolian 5ustainable Finance lnitiative 2017-2020 - role

ofthe (entral

bank and the non-banking financial sector in sustainable finance

.

International experience and lessons learnt on green financing

.

Concept

ofthe

Mongolian Green

(redit

_Fund

.

Market study on green lending demand in Mongolia

.

Roles and cooperation

ofthe

public, private sector and international organizations'to incorporate the Mongolian Green

(redit

_Fund

EXPECTTD OUTCOMES OF MSFF

2016

.

ldentification

ofthe

roles and responsibilities

ofthe

^(entral bank and the non-banking finance sector in sustainable finance

.

Enhanced collaboration between main stakeholders on sustainable financing and the green credit fund

.

lmproved engagement and cooperation

with

private sector on the green credit fuhd initiative

.

Increased involvement and support from other DFls resulting in closer cooperation on sustainable finance and green economy development

.

Increased public awareness on the importance

oftheTo(

initiative and banks'implementation progress TARGET AUDIENCE

.

Bank management, senior risk/E&S officers and other professionals

.

Policy makers, tegulators and ministries

.

Developmentfinanceinstitutions

.

Internationalorganizations,embassies

.

Foreign ^guests and representatives involved in sustainable financing

.

Industry/Professionalassociations

.

Bank clients and business representatives

.

Non-banking financial sector

.

Environmental and social experts and consultants

.

Environmental and social NGOs

.

Otherfinancialinstitutions

.

Other interested organizations working in the area ofgreen, sustainable development

PARTNTRSHIP OPPORTUNITITS

lf you ate interested in partnering at this (onference, ^please contact Ms. Nomindari Enkhtur, Projects and Partnership Manager of the Mongolian Bankers Asociation at +976 99177149 or nomindari@mba.mn

R[GISTRATION

lf you would like to attend the (onference, please contact the Mongolian Bankers Association at nomindari@mba.mn or 976 1 1 -323581 before November 1 5, 201 6. Please note that the n um ber of seats of the (onference _is limited.

SUSTAINABLE FINAN(E

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SUSTAIIIABII DTVILOPMTNT 203O:

IROM PLANNING TO ACTION

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AboutMBA

The Mongolian Bankers Association is an independent, non-profit, non-government organization established in 2000 by the banking and non-banking financial institutions in Mongolia. As of today, we are the voice for 22 member financial institutions including 14 commercial banks, the Development Bank ofMongolia, 2 foreign Bank Representative Offices and other financial sector related organizations. TheVision ofthe MBA is to become a powerful professional organization representing

the

bankers and financial officers,

to

^lead

the

banking and financial sector

to

ensure

the

sustainable development and equitable economic arowth of Mongolia, and to contribute substantially to the development of the country as the regional financial center.

For more information, visit

http:i/mba.mn/

About Ministry

of

Environment

and

Tourism

The Mission of the MET is "To ensure human right

to

live in healthy and sound environment by promoting economic growth and social development taking into consideration ofecological balance, promoting the sustainable use of natural Iesources,

facilitating the natural rehabilitation and

restoration

of

environmental degradation,

and

developing environmentally friendly and sustainable tourism to implement green development goals, andlncouraging cooperation

and participation of the

Government,

citizens, private entities and organizations on supporting

sustainable development,"

For more information, visit

http://www.mne.mn/

About Golomt Bank

Founded on March 6th of 1 995 as a pioneer privately held bank in Mongolia celebrating 21st year anniversary this ^year, Golomt Bank grew into the leading commercial bank of Mongolia comprising /+ of Mongolian national GDP and 20%o

of

Mongolian banking system as of end of 201 4. The bank has well-established domestic and international client bases in both corporate and retail market. Worldwide financial magazines such as Global Finance, Euromoney and

the

Banker named Golomt as the best bank of Mongolia.

For more information, visit

http://www.golomtbank.comi

About

Bank

ofMongolia

As the Central Bank, the Bank of Mongolia (BoM) ensures the stability of the national currency -Togrog. Within ^{this main} objective, the BoM promotes balanced and sustained development

ofthe

national economy, through maintaining the stability of money, financial markets, and the banking system. In order to implement its objectives, the BoM conducts activities such as issuing cunencies in circulation, formulation and implementation of monetary policy, acting as the Government's

fiscal intermediary,

supervision

of banking activities, organization of inter-bank

payments and settlements, management of the offcialforeign exchange reserves.

For more information, visit http://www.mon golbank. mn/eng/default.aspx

AboutMNC(l

MNCCI is devoted to the development of internationaltrade and investment in Mongolia's business community.Today the MN(Cl has expanded to include 19 subsidiary branches in the Mongolian countryside and actively cooperates

with

more than 40 international Chambers of (ommerce and Trade Promotion 0rganizations.

MN((l

also houses the Mongolian National Arbitration (enter,

For more information, visit http://www.monqolcha mber.mn/en/

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SUSTAlllABLt 0&il.OFMtNT 2030:

TROI\4 PLANNING TO ACTION

AboutlF(

lFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working

with

^private enterprises in about 100 countries,

we

use our capital, expertise, and influence

to

help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more

than

522

billion

in financing

to

improve lives in developing countries and tacklethe most urgent challenges ofdevelopment.

For more information, visit

http://www.ifc.org/

AboutGGGl

The Global Green Growth Institute was founded to support and promote a model of economic growth known as "green growth'i which targets key aspects ofeconomic performance such as poverty reduction, job _{creation, social} inclusion and environmental sustainability.

GGGI envisions a resilient world achieved through strong, inclusive and sustainable green growth, and is dedicated to supporting the transition of GGGI Member countries towards a green growth _model. In pursuit of these ^goals, GGGI works with developing and emerging countries to design and deliver programs and services that demonstrate new pathways to pro-poor economic growth.

For more information, visit

http://gggi.org/

AboutPAGE

The Partnership for Action on Green Economy (PAGE) seeks to put sustainability at the heart of economic policies and practices to advance 2030 Agenda for 5ustainable Development. Bringing together the expertise of five UN agencies - UNEB lL0, UNDB UNIDO and UNITAR - The Partnership supports nations and regions in reframing economic policies and practices around sustainability to foster economic growth, create income and jobs, reduce poverty and inequality, and strengthen the ecological foundations of their economies.

lt

also supports engagement of the finance sector to bring funding behind country-determined priorities for greening of economy and Mongolia is one of the inspiring stories where the Government and finance sector are working togetherto achieve national sustainable development priorities.

For more information, visit http://www.u n-pa ge.org/

AbouttSD

Mongolia's economy is strongly dependent on mineral res0urces and its utilization. This issue contemporarily threatens

the

environment and society.

With

rapid urbanization, Mongolian society is challenged by dynamic socio-economic changes and insecurities in livelihood. From these challenges, Mongolia learnsthe impottance of shifting from brown to green economy and equitable development.

lt

recognizes

the

importance of integrating education

into

sustainable development. The Government of Switzerland is supporting Mongolia

to

initiate a comprehensive reform process to mainstream Education for Sustainable Development (E5D) in the societywhich gradually be transformed into sustainable development.

www.mba.mn

twitter.com/Mon golianbanker

faceboook.com/Mon golianBan kersAssociation +97 6 11 323581, +97 6 99177 1 49

info@mba.mn