Mongolia is a lower-middle-income resource-rich democracy of 3.3 million people landlocked between Russia and China. Mongolia is clearly inclined toward democracy and human rights, but economically dependent on China and energy-dependent on Russia.
Traditionally, Mongolia tries to balance the dominance of the two geographical neighbours by also cultivating close relations with “third neighbours”, including the EU.
The EU supports Mongolia to strengthen the resilience of its economy by diversifying out of mining and making it less vulnerable to exogenous shocks, in line with “Vision 2050”, its domestic long term development policy, and the Global Gateway Strategy.
Team Europe in Mongolia brings together the EU, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), Czech Republic, and Germany (GIZ and KfW).
The EU adopted a Multi-annual Indicative Programme (MIP) for the period 2021-27 under the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe). Under that framework, the EU allocated €31 million in funding to the partnerships with Mongolia over 2021-24. Mongolia also benefits from several multi-country EU programmes and investments mobilised through the European Fund for Sustainable Development Plus (EFSD+), Global Gateway’s financial tool.
Our flagship initiatives
Team Europe in Mongolia aims to leverage financing on sustainable nature resource management, value chain development, and green energy through the Team Europe Initiative Green Economic Growth by focusing on several key sectors:
- Climate & energy and Water & waste management – to promote investments for green and climate resilience, and create a more enabling business environment on renewables. It focuses on:
- Energy transmission line - constructing the 220 km Choir-Sainshand double circuit energy transmission line will enable on-going renewable energy projects to connect to the grid, reduce energy losses, and improve intra-regional connectivity in Mongolia
- Climate resilience - constructing, extending and rehabilitating the water network, including flood protection measures, will contribute to building climate resilience and protecting the existing environment where the population resides and earns its livelihood in Erdenet City
- Green and resilient regional development - providing basic infrastructure to secondary urban centres, such as roads, internet connection, electricity networks and substations, photovoltaic panels, water networks, district heating network, renovation of public building, social and affordable housing, and solid waste management
- District heating - rehabilitating and installing pipes, valves and smart meters to help reduce CO2 emissions and local air pollution in the City of Ulaanbaatar by improving the reliability of district heating supply and increasing the network’s capacity
- Solid waste management - building a new sanitary landfill and waste recycling plant will improve the solid waste management situation in the city of Ulaanbaatar
- Forest Partnership – to contribute to Mongolia’s National Campaign to plant “One Billion Trees by 2030” launched in October 2021. A Memorandum of Understanding (MoU) was signed by President von der Leyen and Mongolian President Ukhnaa Khurelsukh on the margins of the UN Climate Change Conference, COP 27 on 9 November 2022. The main objective of the Forest Partnership is to address the protection, restoration and sustainable management and use of Mongolia’s forests by improving governance, forest-based value chains, conservation and restoration of natural forest, and reducing deforestation and forest degradation.
To support the implementation of the Green Economic Growth Team Europe Initiative, we also cooperate with Mongolia on:
- Judicial reforms - to improve efficiency and credibility of the justice system ensuring an independent judiciary, which will lead to an enhanced business environment and more green investments
- Digital transformation agenda - to ensure the twin transition (green and digital) with a focus on the regulatory framework, connectivity, and the promotion of e-governance, e-commerce and e-learning
- Transparent management of public finances - to contribute to fighting against corruption across sectors, increasing investors and citizens’ trust of government institutions and ensuring more support for climate-sensitive policies