Mongolia launches $50 mln green finance platform to cut 3.75 mln tons of CO2

21 / 08 / 2026

By Marwa Nassar - -

Mongolia has launched a $50 million green finance platform, backed by $26.6 million from the Green Climate Fund, to scale climate investment and cut an estimated 3.75 million tons of CO2 emissions over its lifetime.

Building national green finance platform:

The Mongolia Green Finance Corporation (MGFC) officially launched on Aug. 20 at the High-Level Sustainable Finance Forum 2026 in Ulaanbaatar, with backing from the Green Climate Fund (GCF).

GCF is providing $26.654 million in concessional finance through grants, loans and equity, anchoring a total $49.654 million initiative designed to expand green investment across Mongolia.

The launch brought together Mongolia’s Prime Minister, the Minister of Environment and Climate Change and the Head of the Financial Regulatory Commission, along with representatives from the Development Bank of Mongolia, Credit Guarantee Fund, XacBank and the Global Green Growth Institute.

Turning climate capital into projects:

MGFC is designed to go beyond financing individual projects. It will serve as a national platform connecting the government and financial sector to develop a pipeline of bankable green investments and demonstrate their commercial viability.

GCF supported the institution from concept to launch, providing initial Readiness support, followed by project preparation assistance and direct investment through equity, concessional debt and technical assistance.

The approach is intended to use catalytic capital to reduce investment risks and bring in private financing that may otherwise struggle to reach Mongolia’s green economy on competitive terms.

Nearly 3.75 mln tons of emissions targeted:

Over its lifetime, MGFC is expected to cut greenhouse gas emissions by 3,754,767 tons of CO2 and directly benefit 86,291 people, including 43,145 women. Another 1.49 million people are expected to benefit indirectly.

“GCF’s vision for MGFC is to build a lasting national green finance institution that goes beyond financing a portfolio of projects,” said Hemant Mandal, GCF Director of the Asia and Pacific Region.

“With dlrs 26.6 million in GCF financing anchoring a dlrs 50 million vehicle, expected to cut emissions by close to 3.75 million tons of CO2 over its lifetime, MGFC shows what that vision looks like in practice — a locally anchored platform using catalytic capital to build a track record, crowd in private investment, and grow the market for green finance in Mongolia and the region.”

Model for regional green finance:

MGFC is expected to help connect Mongolia’s climate priorities with domestic savings and international capital, while creating a stronger track record for green investment.

The institution could also provide a model for other markets seeking to build locally anchored climate-finance institutions capable of attracting private and international capital over the long term.