ADB Project in Mongolia secures $175 million in funding from Green Climate Fund

AKIPRESS.COM - The Green Climate Fund (GCF) has approved $175 million in funding for an Asian Development Bank (ADB) program to support the Government of Mongolia's efforts to improve rangeland management and reduce climate vulnerability of its rural economy. GCF funding, which consists of a $130 million highly concessional loan and a $45 million grant, will supplement a $560 million Aimags and Soums Green Regional Development Investment Program.
The program is co-financed by ADB, the European Investment Bank, the European Union, and the private sector to provide a transformative model on green territorial development and urban-rural linkages where aimags (province) and soums (subprovince) become anchors of green agribusinesses that promote sustainable, resilient, and high-carbon sequestration management in Mongolia's rangeland. This is the second GCF funding for ADB in Mongolia.
"We are very thankful for GCF's support and co-financing. Our partnership with GCF reinforces ADB's strong commitment to climate change mitigation and adaptation," said ADB Director General for East Asia James Lynch. "The program introduces an integrated solution to Mongolia's multidimensional challenges by balancing its territorial development, reducing migration to Ulaanbaatar, and regenerating natural resources for high-carbon sequestration."
The program will promote low-carbon, climate-resilient territorial development and green economic diversification by supporting sustainable livestock sector management and reverse rangeland degradation. It will also strengthen local agribusiness value chains to link sustainable herding with low-carbon and climate-resilient business development, and support vulnerable herder groups by empowering them in sustainable rangeland management practice and creating green jobs to overcome the economic downturn related to the coronavirus disease (COVID-19). With an initial focus on Mongolia's western aimags, the program promotes climate finance and private sector investment mechanisms that are designed for replicability across the country.
GCF approved the funding at its 28th board meeting. GCF, based in Songdo, Republic of Korea, is a global fund created to help developing countries address the challenge of climate change. GCF has approved total funding of $648 million for 11 ADB projects since 2015.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.