Title
Developing Sustainable Finance Mechanisms for Climate Change Adaptation in Dornogobi
Author(s)
Wildlife Conservation Society, Mongolia
Published
2025
Abstract
This report reviewed the legal framework and policies on climate change adaptation and conservation in Mongolia and compared the advantages and disadvantages of different community-based organizations including community based natural resource management groups (CBNRMs) and cooperatives. With reference to the desk review and few brief consultations with the local coordinator and Nutag NGO, who visited the target sites, sustainable finance mechanisms for climate change adaptations in Dornogovi province was proposed. National policy and legal framework on conservation and climate adaptation strategies are very well defined in Mongolia. Also, the government is committed to implementing the overarching long-medium-short term policies including Long-term Vision 2050, New Revival Policies, Regional Development Strategies. However, the development strategies and conservation and climate policies at the local levels (Dornogovi provincial and respective soum) are yet to be developed and approved. Based on the comparison of the different CBOs, it is recommended to transition the existing aravt CBOs into CBNRM groups preferably nukhurluls as per the Law on Environmental Protection (2012), or herder’s association as per the Law on Herders Associations (2024); so that the CBOs can secure priority access and management rights in their designated territories and natural resources. Several sustainable finance mechanisms including livestock tax, natural resources use fee, community savings and lending mechanism, biodiversity offset, corporate social responsibility, and CBNRM based cooperatives, were evaluated. It was found that the most viable sustainable finance solution for conservation activities (e.g. biotechnical measures for wildlife, monitoring and protection of wildlife, patrolling expenses of the rangers etc.) is the natural resource use fee, whereas livestock tax would be a potential resource for climate adaptation activities (e.g. purchase of fodder, improving the breed of livestock, protection of water resource, pasture management etc.). These finance solutions are supported by the respective laws and the implementation mechanisms are approved. However, the main challenges are the lack of capacity of local stakeholders (local officers, herders and CBNRM groups), lack of understanding of the opportunity, and mismatch between planned revenue and proposed activities. It is also recommended to develop community savings and lending mechanism to ensure financial sustainability of the community-based organizations (CBOs) and support the climate adaptation efforts. CBNRM based cooperative schemes can also be developed in line with the New cooperative – Wealthy herder program, which is supported by the government of Mongolia. Nevertheless, it should be noted that implementing sustainable finance mechanisms require long time as its success depends on the self-determination, capacity, leadership and governance of the CBOs.
Keywords
Sustainable finance mechanism
Full Citation
Wildlife Conservation Society, Mongolia (2025). Developing Sustainable Finance Mechanisms for Climate Change Adaptation in Dornogovi. Ulaanbaatar, Mongolia: Wildlife Conservation Society, Mongolia, 1-27.
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