Ms. Beate Trankmann, UNRC and UNDP RR at the signing ceremony of Nationally Appropriate Mitigation Actions in the construction sector in Mongolia” Project Document

Jun 9, 2016

STATEMENT  by  Ms. Beate Trankmann, UNRC and UNDP RR at the signing ceremony of Nationally Appropriate Mitigation Actions in the construction sector in Mongolia”   Project Document

June 9, 2016

It is a great pleasure to be here to sign this new project titled “Nationally Appropriate Mitigation Actions in the Construction Sector in Mongolia”.   This initiative is supported by the Global Environment Facility with a budget of USD 1.37m spanning over a period of over 3 years. It aims to develop and incentivize the introduction of ecological, low emission approaches in the construction sector of Mongolia.

Mongolia is a country that is vulnerable to climate change with temperature increases above global average. It is also a country with high per capita Greenhouse Gas emissions because of its long winters with eight months of space heating requirements which are predominantly met by fossil fuel (raw coal).

High emissions are further augmented by the low level of energy efficiency in the construction and housing sectors, as well as energy tariffs and subsidies that don’t incentivize energy saving actions and behavior by private and public consumers.

At the same time, Mongolia is a country with a high urbanization rate where a considerable proportion of urban dwellers live in traditional gers that are not connected to heating, water supply and sewerage systems.

In UB City alone, approx 180,000 ger households are burning raw coal for heating. This contributes to UB’s heavy winter air pollution which is one of the worst in the world. Particulate Matter (PM2.5) air pollution in winter months exceeds 2.5 times the national limit and leads to pneumonia and respiratory problems in children and cardiovascular diseases in adults.

At the same time, household expenditure per unit of heating energy is up to 16 times higher compared to heating expenditures for those living in apartments thus disadvantaging the poor.

These negative impacts and costs are avoidable.

For the abatement of air pollution, the Government will focus on gradually moving the Ger population into apartment buildings. Recent studies also indicate that by implementing energy efficiency measures, the projected energy demand in the building sector can be reduced by 35% by 2035. Therefore, attention needs to shift to development solutions for low cost and energy efficient housing. Furthermore, pricing and tariffing policies need to incentivize energy savings in existing buildings, both public and commercial.

The project we are signing today aims to demonstrate market transformation solutions in the construction sector to incentivize energy efficient behavior of suppliers, producers and customers.

Nationally Appropriate Mitigation Actions (NAMA), a novel voluntary approach introduced through the project, can help the Government leverage national and international support and finance to achieve effective and transformational GHG reductions in the construction sector

This will contribute to meeting the targets set out in the recently adopted Sustainable Development Goals and Mongolia’s 2030 Sustainable Development Vision, which foresee a 40% reduction in the heat-loss in buildings and a 14% reduction in total national GHG emissions by 2030, compared to business as usual scenario. Achieving these targets will require close cooperation and consultation of relevant ministries (MOGDT, Ministry of Energy and Ministry of Construction and Urban Development), standard setting and inspection agencies, UB City and the private sector. Importantly, the project hopes to attract private sector investments of roughly 3.5m USD.

Let me close by saying that at UNDP we are committed to support application of the best available energy efficient technologies in the Mongolia as part of a wider approach to address poverty and inequality and fight climate change and environmental degradation in order to meet Mongolia’s aspirations under the 2030 Sustainable Development Vision.

Thank you!

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