Mongolia has developed and launched its “Blue Bond Guideline” to increase investment in the protection, restoration, and sustainable use of water resources. The Guideline establishes a framework for mobilizing financing for projects related to water resource management, water supply, water pollution reduction, and the protection and restoration of freshwater ecosystems.
Water is a strategic resource that underpins economic development, social well-being, and environmental sustainability. In Mongolia, the majority of water demand is met through groundwater resources. However, mounting challenges such as climate change, desertification, water scarcity, pollution, and the degradation of freshwater ecosystems are increasing pressures on the country’s water resources and highlighting the urgent need for greater investment in the sector. Although there are 44 landlocked countries worldwide, blue bond frameworks tailored to their unique circumstances and development needs remain largely underdeveloped. In this context, Mongolia’s Blue Bond Guideline, which reflects the country’s specific water resource characteristics and development priorities, represents a pioneering initiative with the potential to serve as a model for other landlocked nations.
The Guideline was developed through a collaborative effort among the Financial Regulatory Commission of Mongolia, Golomt Bank, and the Mongolian Sustainable Finance Association, with technical support from the International Finance Corporation (IFC). The Guideline aims to reduce water scarcity risks affecting water-dependent economic sectors and promote the sustainable management of water resources.
Awareness and understanding of blue finance remain relatively limited in Mongolia, the market potential and opportunities are already within reach. The mobilization of USD 160 million in financing, supported by the International Finance Corporation (IFC), and the introduction of three new financial products provide tangible evidence of this potential. Blue finance is not exclusively an issue for coastal or maritime economies for Mongolia, it is intrinsically linked to the sustainable management of water resources, lakes, rivers, and the growing challenge of desertification. In this context, Golomt Bank is taking a leading role, with technical assistance from IFC, has been developing guidelines for the issuance of blue bonds and is working closely with the Water Agency of Mongolia. The market is ready, and so are we. The priority now is to prepare our clients and channel financing toward tangible, high-impact projects”
emphasised A.Odonbaatar, CEO of Golomt Bank.
Furthermore, the Guideline is expected to catalyze greater investment in sustainable water management, water resource conservation, pollution prevention, and freshwater ecosystem restoration. By aligning Mongolia’s blue finance market with international best practices and standards, it will make a significant contribution to strengthening the country’s sustainable finance ecosystem, enhancing water security, and supporting long-term economic resilience and sustainable development.
Investing for a brighter future