2024-12-08-亚开行-蒙古可持续发展目标金融分类试点（英）_90页_15mb

Summary of Mongolia Sustainable Development Goal Finance Taxonomy Pilot

Core Content

The Mongolia Sustainable Development Goal (SDG) Finance Taxonomy Pilot is a collaborative effort by the Asian Development Bank (ADB), United Nations Development Programme (UNDP), and the Mongolian Sustainable Finance Association (MSFA) to test and implement a new classification framework for sustainable finance in Mongolia. The initiative expands the existing Green Taxonomy introduced in 2019, which focused on environmental considerations, to include social sectors such as education, health, information and communication, and accessible infrastructure. This broader taxonomy aligns with the 17 SDGs and their 142 indicators, aiming to support a just transition, climate-resilient, and low-carbon economy.

The taxonomy includes 12 main sectors and 51 subsectors, which are categorized based on their contribution to sustainable development. These sectors cover energy production and supporting infrastructure, energy efficiency, green buildings, pollution prevention, sustainable water and waste use, sustainable agriculture, land use and biodiversity, low-emission transport, information and communication technology, health, education, and affordable basic infrastructure. Each category includes core indicators, additional indicators, thresholds, and verification standards to ensure consistency and transparency in measuring and reporting impact.

The report is structured into three parts: an introduction, results and analysis of the pilot, and recommendations for taxonomy revision and adoption. It outlines the methodology used to assess the lending portfolios of Golomt Bank and Khan Bank, and provides project profile examples for potential SDG-aligned activities. It also includes a sample reporting template and a governance structure for the taxonomy.

Main Views and Key Information

1. Context and Objectives

• The SDG Finance Taxonomy was introduced to support sustainable capital mobilization and align financial flows with Mongolia's sustainable development goals.
• The pilot project was conducted to classify the loan portfolios of two banks—Golomt Bank and Khan Bank—into sustainable activities as defined by the taxonomy.
• The report provides insights into the current lending strategies, green loan products, and potential for future sustainable lending.

2. Current Status of Green Finance in Mongolia

• As of Q4 2023, the green loan portfolio of commercial banks amounted to MNT 235.5 million, representing 2.9% of the total outstanding loan portfolio.
• Green loans have grown faster than regular loans, with an average growth rate of 154% in 2023 compared to 23.4% for regular loans.
• The Bank of Mongolia introduced favorable swap arrangements and reduced risk-weight ratios for green building loans to encourage green finance.

3. Green Loan Characteristics

• Green loans typically offer more favorable terms than regular loans, such as longer durations and lower interest rates.
• For MNT-denominated loans, the average weighted duration was 42 months, while for USD loans, it was 29 months.
• The average weighted interest rate for green loans was 10.8% for MNT loans and 8.7% for USD loans, both lower than regular loans by 2-3%.
• Some banks offer additional incentives, such as subsidies or reimbursements for green impact measurement and audit costs.

4. Challenges and Opportunities

• Investments targeting social development issues (e.g., human rights, health, education, decent employment) have been lagging compared to environmental investments.
• This is due to the difficulty in defining what constitutes a "social or sustainable" investment.
• The SDG Finance Taxonomy aims to address this by providing a clear framework for identifying, tracking, and reporting on social and sustainable investments.

5. Policy and Institutional Support

• The Government of Mongolia has developed the Integrated National Financing Framework (INFF) and a National Sustainable Finance Roadmap, which outline the financing priorities and targets for the financial sector.
• The National Sustainable Finance Roadmap sets quantitative targets to increase green and sustainable loans in the banking sector to 10% and in the nonbanking sector to 5%.
• The Financial Regulatory Commission (FRC) has also introduced green loan reporting requirements for nonbank financial institutions (NBFIs) since 2022.

6. Future Steps and Recommendations

• The Mongolia SDG Finance Taxonomy is expected to be adopted in 2025, with a 1-year test period for stakeholders to provide feedback.
• The report suggests an action plan for financial institutions to prepare for taxonomy adoption, including training, data collection, and impact measurement.
• The vision of the taxonomy is to help Mongolia transition to a sustainable, low-carbon, climate-resilient, and just economy by aligning financial flows with the SDGs.

Key Sectors and Activities

The taxonomy includes the following key sectors and activities:

• Energy production and supporting infrastructure

  • Wind, solar, geothermal, hydropower, hydrogen, bioenergy, waste-to-energy, and low-carbon energy supply chains.

• Energy efficiency

  • Efficiency improvement in energy supply and across all sectors.

• Energy-efficient and green buildings

  • Energy-efficient buildings, green buildings, and green infrastructure.

• Pollution, prevention, and control

  • Air quality and soil management.

• Sustainable water and waste use

  • Sustainable water use, waste management, rehabilitation of waste sites, e-waste, and mining waste.

• Sustainable agriculture and food security

  • Animal husbandry, agriculture, food processing, and agricultural support services.

• Sustainable land use and biodiversity

  • Sustainable forestation, production, and biodiversity management.

• Low-emission transport

  • Low-emission vehicles, freight transport, transport infrastructure, and inclusive public transport.

• Information and communication technology

  • Accessible networks, safe software and e-platforms, sustainable IoT, and green data centers.

• Health

  • Medical care, health logistics, epidemic control, and health technology innovation.

• Education and culture

  • Education and culture and sports industry.

• Affordable basic infrastructure

  • Affordable housing, historical building redevelopment, green infrastructure, disaster risk management, and utility corridors.

Conclusion

The Mongolia SDG Finance Taxonomy is a significant step toward aligning financial flows with sustainable development goals and social considerations. It provides a common classification framework for financial institutions to identify and report on sustainable activities. The pilot project with Golomt Bank and Khan Bank has highlighted opportunities for expanding green and social lending, as well as the need for further refinement of the taxonomy. The report concludes with barriers to adoption and strategic recommendations for improving the framework and ensuring its successful implementation.