Mongolia

Very long and cold winters are a feature of the continental climate in Mongolia. An adequate supply of heat and energy is indispensable for the population, at temperatures reaching minus 40 degrees Celsius and heating periods of up to 200 days. Energy production is largely based on combined coal-fired heat and power stations, using domestic coal. The power stations were built between 1960 and 1990 aided by the Soviet Union. The demand for energy is constantly growing due to the extreme weather conditions and a rapidly growing national economy. However, the power stations are outdated, which is contraproductive to a reliable supply of energy. Up until now, the growing requirement for energy can only be met by additional imports from Russia. And this is the starting point for KfW's projects, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), which invest in existing power stations and distribution networks. Using comparatively inexpensive modernisation measures, the power stations can be operated on a more environmentally friendly and economic basis. In doing so, Germany is contributing to energy security and also the socio-economic development of the country and climate protection.

Project example - Energy efficiency  (PDF, 455 KB, non-accessible)

Mongolia is made up of very different ecological regions including the Altai Mountains, the wide landscape of the Daursky steppe, the dry areas close to the Gobi desert, the forest steppe and boreal forests. Especially in the overlapping areas from one ecological region to another, a particularly wide diversity of species has developed under the extreme conditions of the prevailing continental climate. Due to the low population density, this biodiversity has been preserved until today, meaning that Mongolia is a refuge for animal and plant types which are unique in the central and East Asian region.

Since the political changes of 1990, there has been a considerable increase in pressure on the ecological systems. On the whole, the land is used intensively but not sustainably. The impact of climate change is another factor. That is why, according to the United Nations, up to 70 % of the surface area has been ravaged. During the past few years environmental reforms have significantly improved the preconditions for protecting Mongolian biodiversity. The government declared almost 30 % of the country's surface area as a protected zone: 16 % for the state and 14 % in communal hands, a total of 465,000 km². In doing so, Mongolia has proven its commitment to nature protection and its readiness to implement the UN convention for preserving ecological diversity. Despite annually rising allocation of funds from the budget, the financial scope available is not sufficient for effectively managing the assigned protective areas. KfW is therefore strengthening the management of protected areas on behalf of the German government, so that Mongolia can effectively implement the UN convention.