This session presented a study on the macroeconomic effects of temperature and precipitation shocks in Mongolia, a unique case of a developing economy in a cold region. While most research focuses on the negative impacts of climate change on developing countries in hotter climates, this study addresses the gap in understanding for cold-region economies like Mongolia. Using extensive national and provincial data, the study reveals that temperature increases have delayed negative effects on economic output, while increased precipitation can boost productivity in the short term. The findings emphasize the need for tailored climate adaptation strategies, improved water management, and economic diversification to build resilience. Mongolia’s experience offers valuable lessons for other ADB developing member countries facing climate vulnerabilities in diverse regional contexts, providing insights into how climate impacts can be managed to support sustainable development.

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