The Bank of Mongolia presents results of its first climate scenario analysis
On May 6, 2025, the Bank of Mongolia organized a workshop to present the results of the country’s first bottom-up Climate Scenario Analysis (CSA). The CSA was conducted in partnership with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) under the “Readiness Support for Greening the Bank of Mongolia” project, funded by the NDC Partnership. The project aims to integrate climate risk and impact assessments into the Bank’s policies and operations to build a more climate-resilient financial system.
The pilot analysis involved five systemically important banks and one voluntarily participating bank. The CSA was conducted using three climate transition scenarios and two physical risk scenarios for drought-dzud, and flooding—as well as transition risks from financed emissions were assessed.
“This pioneering initiative sets a precedent for other landlocked developing countries working to assess climate risks in their financial system and then target key sectors to ensure economic resilience in the face of climate change,” emphasized Ms. Subathirai Sivakumaran, Chief of the Macroeconomic Policy and Financing for Development Division at UNESCAP.
During the seminar, participants discussed the challenges faced, the experiences of the participating banks and the Bank of Mongolia, and potential next steps. Representatives from the Bank of Mongolia, commercial banks, the Mongolian Sustainable Finance Association (MSFA), the National Agency for Meteorology and Environmental Monitoring, the National Emergency Management Agency, the Mongolian Mortgage Corporation, and development partners took part in the event.
Ms. Urgamal Suvd, Director of the Monetary Policy Forecasting Division at the Bank of Mongolia, stated: “We believe this climate scenario analysis will serve as a gateway for broader participation by banks and financial institutions in the future, enabling more realistic assessment and management of climate-related financial risks.”
As climate risks intensify, this initiative marks a milestone in aligning Mongolia’s financial sector with national climate goals and global sustainability standards.