National program on small and medium-sized enterprises approved www.montsame.mn

Ulaanbaatar/MONTSAME/.The Cabinet approved the National Program on promoting small and medium-sized enterprises (SMEs) and assigned Ch.Ulaan, Minister of Food, Agriculture and Light Industry, to oversee its implementation. Required funding for the program will be issued from annual state and local budgets, basic guidelines and foreign and international loan and assistance.

Opinion: Can Mongolia bring back its blue skies, clouded by coal?

With the onset of spring, the deep freeze of Mongolia’s winter begins to thaw and Ulaanbaatar residents can breathe more easily.

It is not just the receding cold that is cause for relief, but an improvement in the Mongolian capital’s air quality, along with the diminishing need to burn coal indoors for many of those living on its outskirts.

During winter, when temperatures in Mongolia drop to -40 degrees Celsius, generating heat in any form is not just for comfort but a necessity to survive. And for many of those living in the outer parts of the city, not connected to the main electricity grid, this means burning coal.

The result is that sometimes during winter, Ulaanbaatar experiences the worst air pollution in the world as a pall of coal smoke stifles the city.

Mongolia is striving to wean itself from its current reliance on coal but continues to face challenges as growing segments of its population rapidly urbanise.

The Green Climate Fund (GCF), the world’s largest fund supporting climate action in developing countries, is channelling climate finance flows to Mongolia to help it leapfrog to low-emission energy generation, while promoting alternatives to home coal combustion.

Backing the Mongolian government’s plan for renewables to account for 20 percent of national power capacity in 2020, and 30 percent by 2030, the GCF joined forces with local bank XacBank to finance a recently completed solar power plant in the country’s eastern Govisumber province. The 10MW Sumber Soum solar power plant is the first to be financed by a Mongolian bank.

The plant is slated to provide Mongolia with 20 percent of its solar power, and account for five percent of the country’s total renewable energy mix. XacBank CEO Bold Magvan, who credits a low-interest loan from the GCF to his bank for getting the solar plant up and running, believes its construction will “trigger another huge wave of Mongolian investors in solar energy”.

The key to rerouting the development tracks of countries like Mongolia onto low-emission pathways is to stimulate the local private sector to seek out investment opportunities that create profits without adding to the already dangerous levels of ecological strain on the planet.

Another joint GCF-XacBank initiative is providing loans to grassroots private sector players in Mongolia to introduce renewable energy and energy efficiency measures that boost their business prospects.

The bustling crowds in Ms Myagmarsuren’s shop on the outskirts of Ulaanbaatar, which sells solar-powered equipment, testify to the power of the market in driving low-emission innovation at a small scale.

Her main customers are herding families whose nomadic lifestyles mean they don’t have regular access to grid electricity. She credits the low-interest loan provided in the GCF-XacBank programme as a key factor in her shop’s economic viability, attracting an average of 100 customers daily.

While successful business and the Sumber Soum solar plant offer signs of shifting, low-emission market forces, Mongolia’s severe air pollution is proof that urgent further action is needed.

On bad air days in Ulaanbaatar, a cloying blanket of coal smoke attacks your body, assaulting your nose and mouth and permeating your clothes. A joint report by Mongolia’s National Centre for Public Health and UNICEF warned in February last year that air pollution had become a “child health crisis.”

Purevjav Gomboluudev, head of climate research at Mongolia’s Information and Research Institute of Meteorology, Hydrology and Environment, says the household combustion of coal in Ulaanbaatar’s outskirts is responsible for about 90 percent of the city’s air pollution.

Most of the outer city dwellers have migrated from the countryside during the past 30 years. Many were formally nomadic herders or farmers, and they now account for half of the capital’s population.

In a cruel twist, the effects of climate change are increasing this influx of migrants whose use of coal to keep themselves warm further worsens the climate dilemma.

Summers that are unusually dry followed by periods during winter which are exceptionally cold are known in Mongolia as dzuds, and they are being exacerbated by climate change. Increasingly, severe dzuds are straining the ability of nomads to keep their herds of sheep and cattle alive.

The GCF has begun working with the Asian Development Bank on an urban renewal project that is designed to construct apartments for Ulaanbaatar’s outer residents as an alternative to their current makeshift housing.

While these new residential areas are intended to be energy-efficient and maximise the use of renewable energy, they are also connected to the main power grid, negating the need to burn coal at home.

Ultimately, a major goal of these measures to lower emissions from energy use and phase out household coal combustion is to restore Mongolia’s image as a land of clear blue skies.

Signing of Memorandum of Cooperation between Japan and Mongolia on a Basic Framework for Proper Operation of the System pertaining to Foreign Human Resources with the Status of Residence of “Specified Skilled Worker” www.mofa.go.jp

On April 17 (Wednesday), the Memorandum of Cooperation on a Basic Framework for Proper Operation of the System pertaining to Foreign Human Resources with the Status of Residence of “Specified Skilled Worker” was signed in Tokyo between the National Police Agency, the Ministry of Justice, the Ministry of Foreign Affairs and the Ministry of Health, Labour and Welfare of Japan and the Ministry of Labour and Social Protection of Mongolia.

Asian Development Bank and Mongolia: Fact Sheet www.adb.org

ADB operations in Mongolia address infrastructure gaps, promote renewable energy, foster regional economic integration, expand access to basic urban services, and provide support to agribusiness.

Discussion held on new satellite city in Khushig Valley www.montsame.mn

Ulaanbaatar /MONTSAME/. Chairman of the Citizens’ Representative Khural of the Capital city R.Dagva became acquainted with the general development plan for the satellite city, Aerocity, which will be built near the new airport in Khushig Valley, Tuv aimag, and held a discussion with the corresponding officials.

Hakuho to renounce Mongolian nationality www.nhk.or.jp

Sumo grand champion yokozuna Hakuho has begun procedures to renounce his Mongolian nationality so that he can obtain Japanese citizenship.

Rio Tinto warning may rupture mining industry into green and dirty www.mining.com

It's not quite yet pistols at dawn, but Rio Tinto's polite warning to mining lobby groups that they have to acknowledge the threat of climate change is likely a sign that the industry will inevitably fracture into two camps.

These factions could be described as the "green" miners, who produce the minerals essential for the transition from the age of oil to the age of electricity, and the "dirty" miners who remain trapped in coal and other minerals deemed unnecessary for a carbon constrained future.

Rio Tinto's carefully worded statement on industry associations, released last week, said that it would only work with groups aligned with its own climate principles.

Rio Tinto's carefully worded statement on industry associations, released last week, said that it would only work with groups aligned with its own climate principles
These include a commitment that "any advocacy on the use of coal in the long term will note that it will require advanced technology, and in the medium to long term must be consistent with Paris targets."

The world's second-biggest miner also said that mining lobby groups should argue against public subsidies for coal and advocate for energy supply to be done in a "technology neutral way."

Rio Tinto has effectively put mining industry lobby groups on notice that they need to adapt to a world in which the challenge of climate change is recognised and that mining should be a positive force for change.

While other mining groups, notably BHP Group, have also spoken out against the climate denialism that is still prevalent in some of the industry, Rio Tinto appears to be a step ahead in insisting on meaningful change.

The Minerals Council of Australia has now changed its view to argue that "sustained global action is required to reduce the risks of human-induced climate change."

This contrasts with its position in July 2017 that new generation coal-fired power plants would reduce Australia's emissions by replacing older, more polluting generators.

But even if the industry groups do tone down their anti-climate change rhetoric, it will become increasingly hard for them to represent the different ends of the mining scale.

For example, why would a miner of lithium, cobalt or copper in a well-regulated jurisdiction such as Australia, Canada or Chile want to be represented by the same people who also advocate on behalf of a thermal coal miner.

Split coming?
Miners who want to be seen as ethical, environmentally responsible and providing the raw materials for batteries and solar panels may also balk at the idea of being lumped in with companies that operate in countries with questionable governance, weak environmental enforcement or where child labour and unsafe mining practices can occur.

The mining industry is starting to come under more intense pressure from investors who are demanding sustainable and ethical mining.

The collapse of a tailings dam at an iron ore mine in Brazil operated by Vale, with the loss of an estimated 300 lives, sparked a coalition of ethical investors to write to 683 listed resource companies asking for them to make public within 45 days information on their facilities.

The mining industry is starting to come under more intense pressure from investors who are demanding sustainable and ethical mining
It's going to become increasingly common at company annual general meetings for investors to demand what action mining firms are taking when it comes to offsetting carbon emissions.

The mining industry as a whole has been slow to recognise that it doesn't matter what each individual mining executive or board of directors believe, it matters what the investing public believes, and the weight of evidence is that climate change is increasingly featuring in investment decisions.

Rio Tinto, with its focus on iron ore and copper, may be able to successfully re-brand itself as a green miner, given the key role of copper in electric systems and the need for steel in many renewable technologies.

However, other major miners, such as BHP and Glencore, may struggle given they both have sizeable positions in coal within their portfolios, even if they do also mine resources needed for the battery revolution.

How they balance the pressure they will no doubt be subjected to against the profits from coal will be a challenge for their executives.

For pure coal miners, they will likely have a choice between accepting their industry associations are not going to lobby much on their behalf, or strike out on their own and form dedicated bodies to advocate their interests.

(By Clyde Russell; Editing by Richard Pullin)

President expresses his full support for Third Neighbor Trade Act legislative bill www.montsame.mn

Ulaanbaatar/MONTSAME/. United States Representative Ted Yoho introduced the “Mongolia Third Neighbor Trade Act” (H.R.2219) in the U.S. House of Representatives on April 10, 2019. The bill has garnered bipartisan support in the House, and as of April 16, co-sponsored by Rep. Dina Titus, Rep. Steve Cohen, Rep. Brian K. Fitzpatrick, Rep. Don Young, Rep. Ralph Norman, Rep. David E. Price, Rep. James P. McGovern, and Rep. Susie Lee.

AmCham monthly meeting hosts Minister of Mining and Heavy Industry www.montsame.mn

Ulaanbaatar/MONTSAME/. The American Chamber of Commerce in Mongolia (AmCham) held its April Monthly Meeting on April 15 at Shangri-la Hotel, hosting Sumiyabazar Dolgorsuren, Minister of Mining and Heavy Industry. Amcham’s members, foreign and local investors, foreign embassies and ministry officials attended the meeting and discussed existing challenges and ways forward to promote competitive mining as the engine of the Mongolian economy. During the meeting, Minister Sumiyabazar provided an insightful and comprehensive overview of the government’s efforts to advance the policy reforms in the mining sector.

China's economy performed surprisingly well in the first quarter www.cnn.com

Hong Kong (CNN Business)China's ginormous economy could be showing renewed signs of life in 2019.

The world's second-biggest economy grew by slightly more than expected in the first quarter of 2019, Chinese government figures showed Wednesday. It expanded by 6.4% compared to a year ago, beating economists' forecasts of 6.3%.
The prospect of a deeper slowdown in China has been one of the biggest concerns for the global economy this year. The economy has been hit by a trade war with the United States and government efforts to rein in a huge amount of debt in China's financial system.
"This confirms that China's economic growth is bottoming out and this momentum is likely to continue going into months ahead," said Tai Hui, chief market strategist for Asia-Pacific at investment firm JPMorgan Asset Management.

Chinese government statistics showed that growth in the first three months of the year was supported by strong spending by Chinese consumers and manufacturing production.

While China's current economic growth rate is still its slowest in decades, there have been signs of positivity in recent weeks, with indicators including property prices and bank lending suggesting a more bullish hue.
Analysts said that investors will now turn to the possibility of an agreement on trade issues between the United States and China in the coming weeks. Investors' "risk appetite should improve as China's economic downturn risk is contained," Hui added.
Stimulus starts to bear fruit
Chinese growth has lost momentum following government efforts to crack down on risky lending, which starved many companies of the funds they needed to expand.
The world's second largest economy has also started feeling the effects of the trade war with the United States, which has resulted in new tariffs on about $250 billion of Chinese exports.
The deteriorating situation in a market that businesses around the world rely upon for growth has had a widespread impact. It has spooked investors and prompted warnings from top companies such as Apple (AAPL).
China's government last month predicted economic growth of between 6% and 6.5% in 2019. That's below last year's 6.6% rate of expansion, which was already China's slowest annual growth in three decades.

Beijing in response has resorted to trillions of dollars worth of new measures intended to stimulate the economy, including tax cuts for businesses, infrastructure spending and looser monetary policy.
Experts say the measures are now starting to bear fruit. Analysts at investment firm Jefferies wrote last week that they think economic growth in 2019 could now exceed Chinese government targets.
Analysts have for years questioned the authenticity of Chinese economic data. They suspect China's National Bureau of Statistics, which reports much of the country's data, is more focused on making the government look good rather than giving an accurate reflection of its economic health.
"The Chinese published GDP numbers are absolute garbage," said Leland Miller, CEO of advisory firm China Beige Book, told CNN Business in February. "It's certainly the consensus that these numbers are unreliable."