Enhancing Accessibility of Green Financing Through Non-Bank Financial Institutions in Mongolia

Climate change, global warming, and environmental pollution are global concerns. Green financing serves as a financial market-driven approach to protecting the environment and ensuring sustainable development. In December 2019, with the policy support of the Mongolian Financial Stability Council, the "Mongolian Green Taxonomy" document was approved by the Bank of Mongolia, the Financial Regulatory Commission, and the Ministry of Finance, aligning with international green economy principles and criteria. This taxonomy provides a framework for identifying and classifying environmentally sustainable economic activities in Mongolia and serves as a guideline for financial institutions to promote green finance. This study examines green financing and green loan products within Mongolian NBFIs, analyzes the current situation, identifies challenges, and proposes recommendations to increase green financing accessibility based on international standards for environmental performance measurement. Furthermore, it aims to explore how NBFIs can contribute to Mongolia's transition to a green economy and improve access to financing for businesses and individuals engaging in environmentally sustainable projects. The research findings will assist financial regulators, policymakers, and financial institutions in developing strategies to strengthen green finance in Mongolia.