Today, the Netherlands Development Finance Company (FMO), the Trade and Development Bank of Mongolia (TDB), the International Finance Corporation (IFC), a member of the World Bank Group, the Mongolian Bankers Association (MBA), and the Banking and Finance Academy (BFA) jointly inaugurated a forum to promote green development and sustainable financing in Mongolia.
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The four-day "Mongolia Sustainable Financing Forum 2013" commenced with a roundtable discussion among executive directors. Participants included CEOs of commercial banks and representatives from the Bank of Mongolia. The forum aims to raise public awareness of sustainable development, strengthen partnerships, influence development policies, and share knowledge and expertise.
For the first time, executives from Mongolian banks, relevant government officials, business representatives, and international experts from various sectors have gathered to discuss how the banking industry can leverage emerging business opportunities to support Mongolia’s sustainable development.
As a country with abundant natural resources, Mongolia is among the fastest-growing economies in the world. According to the World Bank, Mongolia’s economic growth reached 12.3% in 2012.
During the roundtable discussion, Mongolia’s Minister of Environment and Green Development, Ms. S. Oyun, stated:
“Mongolia has entered a critical phase of economic development. The banking sector plays a vital role in driving the country’s economic growth, creating long-term value, and enabling citizens to benefit from it.”
The event also featured remarks from Mr. E. Batshugar, Deputy Governor of the Bank of Mongolia, who said:
“We welcome the hosting of the Sustainable Financing Forum in Mongolia. We are hopeful that internationally recognized sustainable financing practices and standards will be implemented in Mongolia’s banking sector in the near future. The work has already begun, and we will collaborate with banks to support sustainable financing and development," he emphasized.
The Government of Mongolia places significant importance on green development and environmental responsibility. In 2013, it developed the National Green Development Strategy, outlining an action plan for establishing a green economy.
During the forum's opening ceremony, Mr. Nanno Kleiterp, CEO of the Netherlands Development Finance Company (FMO) and a co-organizer of the event, expressed his satisfaction with the high-level support for sustainable financing. In his remarks, he stated:
“I am deeply pleased to see various stakeholders and decision-makers coming together to support sustainable financing in Mongolia. I firmly believe that Mongolia has the potential to become a leader among nations in this emerging field.
The number of developing countries working to establish sustainable financing frameworks is steadily increasing. For instance, China's Green Credit Policy and Nigeria's Banking Sustainability Principles not only set environmental and social standards but also encourage the adoption of sustainable business models. International organizations such as the International Finance Corporation (IFC) and the Netherlands Development Finance Company (FMO) are collaborating with developing countries to guide and implement these transformative changes.
Mr. Hyun Chan Cho, IFC’s Director for Mongolia, China, and Korea, remarked:
“IFC has demonstrated through its own operations that environmentally and socially responsible practices lead to long-term financial benefits. We are sharing our accumulated international experience, knowledge, and resources with banks, financial institutions, and businesses in emerging economies to help them enhance competitiveness and manage non-financial risks wisely.”
As one of Mongolia’s top five banks, the Trade and Development Bank (TDB) is actively raising awareness of sustainable financing and integrating environmental and social risk management practices into its operations. Mr. B. Medree, CEO of TDB, noted:
“Environmentally and socially responsible banking practices not only protect our assets but also unlock new financial products and market opportunities. We are committed to sharing international best practices with our peers in the financial sector and enhancing the knowledge and awareness of our clients and partners on this crucial topic.
Mr. M. Bold, President of the Mongolian Bankers Association, stated:
“Developing professional expertise and establishing consistent standards across sectors are crucial factors for advancing sustainable financing in Mongolia. By leveraging existing frameworks and networks, we will work closely with the Bank of Mongolia, the Ministry of Environment and Green Development, and both domestic and international partners to build relevant knowledge and capacity in the banking sector over the short, medium, and long term.”
This sentiment was echoed by Ms. S. Nergui, Director of the Banking and Finance Academy.
The Bank of Mongolia and the Ministry of Environment and Green Development participate in the Sustainable Network for banking sector regulators. Led by the International Finance Corporation (IFC), this informal network connects banking regulators and banking associations worldwide to develop standards, policies, and guidelines aimed at fostering environmentally and socially responsible practices within their respective banking sectors.
Mongolia’s President, Mr. Elbegdorj Tsakhia, is scheduled to deliver a speech at the Mongolia Sustainable Financing Forum 2013 during the sector seminar on May 15, 2013, the forum’s second day.
