MONGOLIA S PERSPECTIVE ON GREEN DEVELOPMENT

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1 MONGOLIA S PERSPECTIVE ON GREEN DEVELOPMENT Green Growth Development Paths for a Better Future Joint OECD-GGGI Workshop 22 November 212, Paris, France Damdin Dagvadorj, PhD, Special Envoy on Climate Change, Mongolia

2 Country at a glance: Territory: 1.56 Mil. sq. km P Population: l ti 2.8 Million G GDP growth rate: 17.2% (211) Inflation: 9.7% (211)

3 Green development concept in the development agenda The new government of Mongolia established in 212 announced that green development concept is a new development strategy of the country. y of Nature,, Environment Ministry and Tourism Ministry Environment Green Mi i t off E i t and dg Development / with status of the core Ministry/* *Established according to the law on government structure on 16th August 212

4 Green Development Objectives In the government action program for the period of : To develop green development concept and legal framework and to implement demonstration projects/programs in key economic sectors; To launch several ambitious industrial programs and projects in railway, g roads, industry, y building g sectors nationwide. mining, To provide incentive to environmentally friendly, clean technologies and green consumption; To o ccreate eate mechanism ec a s to link g green ee de development e op e t po policies c es with t loan oa po policies c es o of major banks or financing institutions who provide loans to big mining as well as other big infrastructure projects; To support introduction of environmentally friendly, best available techniques and technologies into mining activities and new development projects. To adopt principles of prohibiting mining activities which have severe environmental impacts and has negative net present values when environmental damage is taken into account. account

5 Main Characteristics of a Brown Economy y Mongolian economic sectors are very energy intensive and carbon footprint is very high. CO2 emission per GDP is 1 times higher than the world average. Energy intensity of industrial output is 7 times higher than the world ld average Automobilesu o ob es e emitting g 5% more o e po pollution u o

6 Sources of electricity generation in Mongolia ДDiesel изельplants түлшнээс Coal fired PPs Нүүрсээс Hydro and wind Усаар Import Импортоор Source: Mongolian Energy statistical indicators, 211

7 Carbon intensity of energy (compared with regional countries) Carbon intensity of Mongolian energy sector is highest among regional countries due to extensive use of coal for electricity and heat production. d ti Source: Asia Pacific HDR, 212 7

8 Water pollution situation Due to the active gold and other mineral exploration and mining activities, Tuul river around Ulaanbaatar, Orkhon river in Arkhangai and Uvurkhangai province, Boroo river in Selenge province is extensively polluted.

9 Composition of Environmental Damages g Caused by y Mining g Activities Surface water Гадаргын ус % 8% Underground water Газрын р доорхи р уус 1% Soil cover Хөрсөн бүрхэвч 7% Plant and vegetation cover Ургамлан нөмрөг 8% Эдэлбэр газар 3% Arable land 73% Газрын хэвлий soil Underground Ойн сан stock Forest АWildlife Амьтан Wildlif Air мандал Агаар Current environmental damage has been estimated to be trillion g yp prohibited to mine. MNT of which 672 trillion is related to areas legally Source: Ministry of Environment and Green Development

10 Share of renewable energy in the energy production and consumption p p (compared with regional countries) Renewable energy share h iin th the ttotal t l energy production is lowest (except Iran) among regional countries. Source: Asia Pacific HDR, 212 1

11 Energy gy intensity y of industrial output p (compared with regional countries) Energy intensity E i i off industrial production in Mongolia is a number of times higher than other countries in the region. Source: Asia Pacific HDR,

12 Overview of GHG emissions in Mongolia Overview of GHG Emissions (26) (1,t-CO2) Agriculture sector Industry 5% Rice cultivation Field burning of agricultural residues 1 Waste 1 % Manure management 172 Agricultural soils Agri-culture 36% 394 Enteric fermentation Energy 58% Energy sector Fugitive emissions from fuels Fuel combustion 5,895 (1,t-CO2) Oil and natural gas Coal 15 Others 244 M Manufacturing f t i and d construction t ti 356 Commercial, residential & agriculture Transport Energy industries Source: Mongolia 2nd National Communication 1,181 1,887 6,399 12

13 Renewable energy is key in reducing GHG emissions as well as air pollution p Advantage for linking GHG emission reduction activities to international mechanisms 1. Overlapping policy objectives g Possibilityy to arrange financing Policy support and subsidy Advantage of linking air pollution reduction measures with carbon finance mechanisms: 1. MRV mechanism which meets international standards, 2 Additional 2. Additi l revenue stream t inthe future secures project stability in the long term. 13

14 CDM under the Kyoto protocol is a way to Reduce Emissions in the Energy gy Sector Approved project type 1 14% 1, 2,, 29% Project Status Num Num. CDM projects registered at CDM executive board 4 CDM projects approved by DNA 7 CDM projects at or after the validation stage 2 Renewable 4, 57% Energy efficiency Biofuel Registered CDM Projects Num. of p j projects Average annual emission ( reduction(tco 2) Total ERs by 212 (tco2) Amount of issued CERs ((tco2) Review Conducted Rejected 51,269 Hydro Power 2 3, 32,173 Wind Power 1 178,778 Energy Efficiency 1 11,94 83,328 Total 4 62,67 385,51 51,269 Source: CDM National Bureau, CCCO, MEGD 14

15 Nationally Appropriate Mitigation Actions (NAMAs) in Mongolia Mongolia submitted its NAMAs on 28th January 21 Sector / Actions Scope of Actions 1 Energy supply - Increase renewable options a PV and solar heating Install large scale PV systems in Gobi region b Wind power generators and Wind farms Place 1-15kW wind turbine generators in provincial centers in the southern part Implement large scale wind farm project c Hydro power plants Encourage the use of small and medium sized hydro developments 2 Energy supply - Improve coal quality a Coal beneficiation Introduce coal washing at the biggest coal mines such as Banganuur, Shivee-Ovoo and Tavantolgoi b Coal briquetting Introduce coal briquetting technology 3 Energy supply - Improve efficiency of heating boilers a Improve efficiency of existing HOBs and Install boilers with new design and high efficiency b Convert hot water boilers into small capacity thermal Convert steam boilers into 1MW thermal power plants x 5 power plants Use 25MW efficient boilers x 12 Install 1MW new boilers x 26 15

16 Nationally Appropriate Mitigation Actions (NAMAs) in Mongolia (Cont d) Sector / Actions 4 Energy supply - Improving household stoves and furnaces a Change fuels for household stoves and furnaces Change raw coal used in stoves of households in cities by LPG and C lb Coal briquette i tt b Modernize existing and Implement the new design for household stoves and furnaces Modernize stoves and furnaces x 25, 5 Energy supply - Improve CHP plants Improve efficiency and Reduce internal use 6 Scope of Actions Improve efficiency at CHP plants Reduce own use at CHP plants Energy supply Increase use of electricity for local heating in cities Use of electricity from grid for individual households in cities In ger (traditional tent house) districts of Ulaanbaatar city 7 Building Building energy efficiency improvement a Improve district heating system in buildings Reduce the loss such as minimizing leakage and replacement of valves and compensators p Regulate room temperatures by residential customers b Install heat and hot water meters in apartments Install the meters in apartments to calculate their heating fee and price based on actual amount of feat used c p for existing g Make Insulation improvements buildings and implement new energy efficient standards for new buildings Lesson the heat loss to improve p energy gy efficiencyy at houses and buildings 2-3 times higher than current d Improve lighting efficiency in buildings Replace current ILB to energy efficient CFL in 3% of service and 16 commercial buildings

17 Sustainable development concept and initiatives Mongolia has been establishing legal framework and institutional arrangements of sustainable development since the1992 Rio Summit Summit. National Program on Sustainable Development, 1997 MDG-based Comprehensive National Development Strategy, 28 Mongolian Action Program for the 21st Century (MAP 21), 1994 National committee on sustainable development headed by the Prime Minister was established in 1994 as a coordinating entity for development and implementation of MAP 21. National Green Development Committee headed by the Prime Minister is a governance body to coordinate and manage green development policy and strategy in the country, 212

18 Green development goals To establish legal and policy framework and institutional arrangements for green development of the country. To green all spheres of life style of the people and industrial and service sectors of the country, To introduce clean and green technologies To establish climate resilient and a low carbon society To increase use of alternate and renewable energy sources To legally prohibit mining activities in the regions with valuable environmental assets; To implement policy towards adopting EU common principles, standards and rules in Mongolia; To bring level of cooperation between central government and local communities, NGOs in preserving the environment to a whole new level; To introduce offset mechanism into mining g restoration;; To introduce waste recycling technology to household as well as industrial sectors;

19 Measures to be taken to reach the goal Green development concept, legal framework and action program to be developed and approved; Techniques and technologies in major economic sectors will be assessed and environmentally sound technologies will be introduced, introduced Green elements of traditional nomadic civilization and local communities will be identified and spread, Special protected areas will be expanded and will be included into World environmental and cultural heritage sites list; The requirements in the environmental impact assessment will become more stringent, strategic environmental assessment will be conducted for development projects, programs and plans; Action programs of climate change adaptation and mitigation, water resource protection and desertification will be implemented. The procedure to award eco labeling will be improved;

20 Measures to be taken to reach the goal (Cont d) Improve the procedure to estimate the deposit for environmental restoration cost; Create legal environment for prohibiting mining in some areas and establishing the borders of areas where no mining is to be allowed; Adopt EU standards in mining restoration, appropriate use of water resources and timber production; Outsource some of the government activities to NGOs and professional associations; Introduce industrial and solid waste recycling techniques and technologies; Regulate flows in Orkhon, Selenge and Tuul rivers, establish water y studies for multi p purpose p water reservoirs,, and conduct feasibility complex based on the pre-feasibility study on water transportation and distribution; Create sustainable financing mechanism to support special protected t t d areas, i t d introduce conservation ti measures based b d on ecosystem service

21 THANK YOU FOR YOUR ATTENTION! website:

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