Mongolia is experiencing severe climate change impacts, threatening its environment, economy, and cultural heritage. As a large landlocked country, it faces risks from desertification, rising temperatures, and extreme weather. Transitioning to a sustainable, green economy is crucial.

The financial sector in Mongolia is central to this transition, playing a key role in mobilizing capital for green projects, innovating financial products, and promoting sustainable practices. Initiatives include developing green financial products and integrating climate risks into financial decision-making. The Asian Development Bank (ADB) has been a major supporter, providing assistance with economic reform, infrastructure, sectoral support, and climate action.

An assessment by ADB highlighted progress and challenges in Mongolia's financial sector. While the banking sector is evolving with increased transparency, there is a growing capital market and expansion in green finance. However, the sector faces issues like inadequate disclosure standards and a limited institutional investor base.

On 21-22 August 2024, ADB jointly organized a seminar with the Bank of Mongolia to discuss strategic action plans such as enhancing regulatory frameworks, fostering market development for green products, incentivizing low-carbon initiatives, and aligning with international disclosure standards as key priorities to realize Mongolia's vision for a sustainable future.