Mongolian banks adopted sustainable finance principles in 2014, including an agriculture guideline. The Financial Stability Council approved a Green Taxonomy with a sustainable agriculture category in 2019, and green loans reached 5.7% of bank loans in early 2026. Green loans for sustainable agriculture were MNT 348.9 billion at the end of 2025. Banks have issued green bonds since 2023, and the Green Climate Fund supports rangeland adaptation and a national green finance corporation.
7.1
What is in force
The Mongolian Bankers Association adopted the Mongolian Sustainable Finance Principles in 2014, with four sector guidelines that include agriculture, and banks report on them every six months, according to a 2019 IFC report12. The banks founded the Mongolian Sustainable Finance Association in December 20173. The Green Taxonomy, approved by the Financial Stability Council in 2019, has a sustainable agriculture category covering organic farming and husbandry, sustainable processing of cashmere, wool and yak down, climate-smart pasture and livestock management and grassland restoration45. An expanded SDG-aligned finance taxonomy was approved in 20235. The national sustainable finance roadmap, approved by the Financial Stability Council in 2022, sets a target of 10% green loans in banks by 203065.
The Bank of Mongolia has collected green loan data since the first quarter of 2020. Green loans rose from MNT 428.1 billion, 2.5% of bank loans, in early 2020 to MNT 2.55 trillion, 5.7%, in the first quarter of 2026, against a target of 6% for 202657. Loans classified as sustainable agriculture were MNT 348.9 billion at the end of 2025, about US$98.1 million, and MNT 567.2 billion in June 202689. A Parliament resolution of June 2025 directed the Government to provide green loans at no more than 6% and asked the Bank of Mongolia to update its green loan classification and risk weights, and the Law on Climate Change of July 2026 placed the green taxonomy in law1011. A 2025 climate-risk assessment by the Bank of Mongolia and the World Bank found, on end-2022 data, that a small share of bank loans (around 4% in the report's classification) went to agriculture, and that exposure to dzud and drought was 1–3% of the portfolio12.
Building the green-finance framework
2014
Mongolian Sustainable Finance Principles, with an agriculture guideline21Finance
Dec 2017
Mongolian Sustainable Finance Association founded3Institution
2019
Green Taxonomy approved by the Financial Stability Council45Finance
Q1 2020
Banks begin reporting green loans to the Bank of Mongolia5Finance
Nov 2020
Green Climate Fund approves the Mongolia Green Finance Corporation13Finance
Mar 2023
Khan Bank issues a US$60 million green bond14Market
Jul 2023
EBRD Green Economy Financing Facility of US$137 million15Finance
Jan 2025
Golomt Bank green and social bond of US$50 million16Market
Jun 2025
Parliament resolution on the green financing system10Law
Jul 2026
Law on Climate Change places the green taxonomy in law11Law
Aug 2026
Mongolia Green Finance Corporation launched17Institution
Green loans for sustainable agriculture
Outstanding bank green loans classified as sustainable agriculture, MNT billion, end of year 2020–2025 and June 2026
End of period
Sustainable agriculture (MNT bn)
2020
80
2021
55.9
2022
49.1
2023
103.2
2024
125.3
2025
348.9
Jun 2026
567.2
Source: BoM — Category of the Mongolian Green Taxonomy reported to the Bank of Mongolia. Total green loans were MNT 2,337.7 billion at the end of 2025 and MNT 2,896.8 billion in June 2026.
Green loans as a share of bank loans
% of total bank loans, first quarter 2020, 2024 and 2026, with targets
Period
Green loan share (%)
Q1 2020
2.5
Q1 2024
3
Q1 2026
5.7
Target 2026
6
Target 2030
10
Source: BoM — Bank of Mongolia. Green loans were MNT 428.1 billion in the first quarter of 2020, MNT 875.3 billion in the first quarter of 2024 and MNT 2.55 trillion in the first quarter of 2026. The 10% target for 2030 is set in the national sustainable finance roadmap.
Sustainable finance framework
Instrument
Issuer
Year
Relevance to agriculture
Mongolian Sustainable Finance Principles and sector guidelines
Green loans for sustainable agriculture of MNT 348.9 billion at the end of 20258
Climate-risk exposure assessment
Bank of Mongolia and World Bank
Sep 2025
On end-2022 data, a small share of bank loans (around 4% in the report's classification) to agriculture, with dzud and drought exposure of 1–3% of the portfolio12
Green financing resolution
Parliament Resolution No. 57
Jun 2025
Green loan rates of no more than 6% and revised Bank of Mongolia classification10
Law on Climate Change
State Great Khural
Jul 2026
Places green finance and the green taxonomy in law11
Banks have used green bonds to raise long-term funding. Khan Bank issued a US$60 million green bond in March 2023, with climate-smart agriculture among its eligible uses, and listed a green bond on the Mongolian Stock Exchange in 20241418. Golomt Bank issued a US$50 million green and social bond in January 2025, and Trade and Development Bank announced green and social bonds that include sustainable agriculture1619. As of October 2026, the Green Climate Fund had approved 14 projects for Mongolia with US$497 million of its financing13. They include UNDP's US$79.3 million project on the adaptive capacity of rural communities, which works on rangeland management and livestock value chains, and ADB's US$735 million green regional development programme for aimags and soums2013. The Mongolia Green Finance Corporation, supported by the Green Climate Fund through XacBank, was launched in August 202617. Mongolia reports about US$2.5 billion of international climate finance mobilised in 2010–202221.
Green and sustainability bonds of Mongolian banks
Issuer
Date
Amount
Terms and use of proceeds
Khan Bank
Mar 2023
US$60 m
5 years. IFC, FMO and MicroVest invested. Eligible uses include climate-smart agriculture14
Khan Bank
Oct 2024
US$30 m offering
Listed on the Mongolian Stock Exchange, with EBRD participation18
Trade and Development Bank
Nov 2024
Not disclosed
5-year green and social bonds. Uses include sustainable agriculture19
Golomt Bank
Jan 2025
US$50 m
Green and social bond, 5 years at 8%, issued in the international market16
Source: IFC · EBRD · TDB · Golomt Bank — Amounts in US dollars as published by the issuers and investors.
Climate funds relevant to agriculture
Project
Funder and entity
Amount
Dates
FP141 Improving adaptive capacity and risk management of rural communities
Source: GCF · EBRD — In October 2026 the Green Climate Fund listed 14 projects in Mongolia with US$497 million of GCF financing.
Law on Climate ChangeLaw2 Jul 2026
Уур амьсгалын өөрчлөлтийн тухай
A new framework for mitigation, adaptation, carbon markets and monitoring, reporting and verification, aiming at net-zero emissions. It defines green finance and the green taxonomy in law, requires projects with green financing to meet taxonomy and verification criteria, and lists pasture as a carbon sink.
Parliament Resolution on the green financing system and legal environmentParliament Resolution No. 5719 Jun 2025
Focuses on housing and air pollution. It sets green loan rates of no more than 6%, directs at least half of the SME Development Fund portfolio to green buildings and energy efficiency, and asks the Bank of Mongolia to update its green loan classification, reporting and risk weights.
Mongolian Green TaxonomyApproved by the Financial Stability Council2019
Defines the activities that count as green lending. Its sustainable agriculture category covers organic farming and husbandry, sustainable processing of cashmere, wool and yak down, climate-smart pasture and livestock management (including herd-size reduction) and grassland restoration. Banks have reported green loans to the Bank of Mongolia on this basis since the first quarter of 2020.
Mongolian Sustainable Finance Principles and sector guidelinesMongolian Bankers Association2014
A voluntary commitment of Mongolian banks to eight principles covering the environment, communities, cultural heritage, green growth, financial inclusion, ethics, transparency and the banks' own practices. Sector guidelines include one for agriculture.
The Green Taxonomy counts climate-smart pasture management, herd-size reduction and grassland restoration as sustainable agriculture4. Green loans classified as sustainable agriculture reached MNT 567.2 billion in June 2026, of which MNT 36.3 billion for climate-smart pasture and livestock management8.
Dzud risk to herder borrowers
Herd losses of 9.4 million animals in 2024 show the scale of the risk to herder borrowers. Insurers wrote 2,555 index-based livestock insurance contracts in 2025, and brokers sold 19,3502223.
Green funding is available in dollars
Khan Bank's US$60 million green bond of 2023, in which IFC invested US$15 million, lists climate-smart agriculture among its uses14. The EBRD's US$137 million Green Economy Financing Facility, launched in 2023 with Green Climate Fund co-financing, works through Khan Bank and XacBank15. ADB's IATI data record a proposed US$100 million loan to Khan Bank (pipeline status, start date 8 December 2025), not yet disbursed, which would also support sustainable agriculture24.
Livestock methane
Enteric fermentation produced 70% of agricultural emissions in 2022, and the NDC includes livestock and manure measures in agriculture2125.
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
