The Mongolia Green Finance Corporation (MGFC), a new public-private institution designed to expand green investment across Mongolia, has officially launched with major financial backing from the Green Climate Fund (GCF).
The GCF is providing USD 26.654 million in concessional finance through grants, loans and equity, anchoring a total MGFC project worth USD 49.654 million. The institution was launched during the High-Level Sustainable Finance Forum 2026 in Ulaanbaatar, held alongside the 17th Conference of the Parties to the UN Convention to Combat Desertification.
MGFC brings together the Mongolian government and financial sector to create a long-term platform for climate-focused investment. Rather than financing individual projects alone, the initiative aims to develop a pipeline of commercially viable green projects capable of attracting additional domestic and international investment.
The institution is expected to support Mongolia’s transition toward a greener economy while helping strengthen the country’s financial system. Its projects are projected to reduce emissions by approximately 3.75 million tonnes of carbon dioxide over its lifetime.
MGFC is also expected to directly benefit more than 86,000 people, including over 43,000 women, with a further 1.49 million people expected to benefit indirectly.
The Green Climate Fund says its support has extended from developing the initial concept to preparing and financing the institution. This included readiness assistance, project preparation and direct investment through equity, concessional debt and technical support.
The new institution builds on Mongolia’s growing green finance sector. The GCF’s Mongolia portfolio already includes a utility-scale solar project financed with XacBank, which became the country’s first bank-financed project of its kind and now supplies electricity to around 20,000 households.
The launch of MGFC is expected to provide a potential model for other countries seeking to connect national climate priorities with domestic savings and international capital. By creating a locally anchored institution dedicated to green finance, Mongolia aims to strengthen its ability to attract investment and accelerate climate action across the region.
