Sain baina uu? 

Distinguished experts, colleagues, ladies, and gentlemen, 

I am very pleased to be here, at this workshop on SDG Finance Taxonomy and how to utilize it.

Today, we unite in a shared commitment towards sustainable development as in essence SDG Taxonomy is a tool in that direction. It is a classification system of economic activities contributing to SDGs, along with the criteria for measuring, verifying, and reporting the impacts of the financial flows towards the SDG. 

Last year, in June, I was not in Mongolia, but I carefully followed the developments in Mongolia and saw that the launch of the Mongolia SDG Finance Taxonomy took place during the Green Finance International Forum and thus Mongolia became one of the first countries to adopt SDG Finance Taxonomy. 

Rightly so. The financial gap for achieving SDGs in Mongolia is estimated at around USD 43 billion, or 18 percent of GDP annually. Therefore, it is crucial to mobilize private capital to achieve national sustainable development.

SDG Finance Taxonomy is one of the tools, expected to leverage more private capital to support the transition to a sustainable, low-carbon, climate-resilient economy. 

In 2022, UNDP, under the leadership of the Ministry of Finance and within a broader UN intervention, supported the drafting of the SDG Finance Taxonomy. Launched in 2023, the target was set to officially adopt the SDG Taxonomy as of 2025, replacing the current Green Taxonomy. 

This event – is about preparation for that, hence it is jointly organized by the Mongolian Sustainable Finance Association, the Bank of Mongolia, the Financial Regulatory Commission, and the Ministry of Finance. 

In preparation for the adoption of the new SDG Taxonomy, MSFA, ADB, and UNDP partnered with Khan Bank and Golomt Bank to pilot the Taxonomy in their portfolios, to identify areas for improvement, recommendations for all financial institutions and financial regulators for implementation of this new framework. The results and recommendations from the pilot study will be shared today.

In addition, MSFA with support from the Green Climate Fund and the Trade and Development Bank, developed three sector guidelines to support the Taxonomy - green financing for energy efficiency, sustainable water management, and sustainable waste management. The draft version of these guidelines will also be presented during the workshop.

Finally, we hope that the event will result in an agreement on an action plan and its timeline to jointly ensure the readiness of the financial market to use the new SDG Taxonomy, comply, and report according to it.

UNDP takes much pride in supporting the Mongolia’s achievement of this significant milestone in its development trajectory.

We are inspired that Mongolia is among the early developers of the SDG Finance Taxonomies worldwide, having launched the national Taxonomy framework in June 2023. We aim to support Mongolia and the most vibrant financial sector for much more, ultimately expanding the use of innovative sustainable finance instruments and thematic bonds.

Because that is the way to advance the sustainability of Mongolia’s development.

I look forward to fruitful outcomes that will shape the future of sustainable finance in Mongolia.

Bayar-la-laa | Thank you.