Mongolia Signs Landmark Climate Finance Deal For Its Grasslands

Mongolia Signs Landmark Climate Finance Deal For Its Grasslands

Mongolia sealed a groundbreaking climate finance pact to safeguard its grasslands. The agreement, named “Eternal Mongolia,” calls for a $71 million commitment from a coalition, supported over 15 years by Mongolia’s guarantee of $127 million. This deal is expected to be among Asia’s biggest climate finance projects and would extend Mongolia’s network of National Protected Areas and provide a template for international conservation initiatives.

With temperatures rising by 2.25 degrees Celsius in 80 years due to climate change, Mongolia is experiencing extreme environmental problems such as severe winters and droughts. “Eternal Mongolia” uses the Project Finance for Permanence (PFP) approach, combining financing and policy modifications into a unified contract with social and environmental goals.

The Nature Conservancy, working in partnership with Mongolia, anticipates that this agreement will support national conservation initiatives while safeguarding the distinctive steppe lifestyle of the nomadic herders. Mongolia’s grasslands confront numerous risks, even though they support a varied range of wildlife and store enormous amounts of carbon.

The idea suggests charging mining corporations that utilise Mongolia’s resources with biodiversity offsets to fund conservation. It also intends to increase national park fees to viable levels. With future projects planned in Africa, the Americas, and Canada, the Nature Conservancy hopes to spread this concept around the world.