MSME Business Loan Program for GHG Emission Reduction

MSME Business Loan Program for GHG Emission Reduction

  • Status Under implementation
  • Date approved 15 Dec 2016 at B.15
  • Est. completion 08 Jun 2022
  • ESS Category Intermediation 2

Supporting Mongolian enterprises embrace energy efficiency and renewable energy.

Ninety percent of Mongolian businesses are run by Micro, Small and Medium-Sized Enterprises (MSMEs). The majority of these enterprises use outdated and inefficient equipment, processes and buildings - resulting in relatively large emissions of greenhouse gases. One of the main barriers to low-carbon innovation is financial. The lack of accessible commercial finance by local banks impedes the ability of Mongolian enterprises to invest in energy efficiency and renewable energy.

This programme will provide XacBank, one of Mongolia’s leading banks, with an enhanced ability to support loans to Mongolian enterprises investing in energy efficiency and renewable energy projects. GCF’s USD 20 million contribution will be blended with other financial sources to fund low-carbon projects. This will help Mongolian enterprises adopt enduring, low-carbon business models - and help alleviate the current prevalence of high financing costs and relatively short-term loan periods.

In accordance with GCF’s gender focus, at least half of the financial support will go towards women-led MSMEs.

The project has an estimated lifespan of 5 years.

Total project value


Tonnes of emissions avoided




Result areas

Project timeline


23 Aug 2016 - 115 days

Concept note received

23 Aug 2016

Funding proposal received

03 Nov 2016

Legal opinion on AE's Internal Approval

23 Nov 2016

Cleared by iTAP

30 Nov 2016


15 Dec 2016 - 176 days

Approved by GCF Board

15 Dec 2016

Disbursement - USD 500,000

01 May 2017

FAA executed

07 Jun 2017

Under implementation

08 Jun 2017 - 1,644 days so far

FAA effective

08 Jun 2017

Disbursement - USD 19,500,000

23 Jun 2017

Annual Performance Report

23 Feb 2018

Annual Performance Report

28 Feb 2019


08 Jun 2022 - 184 days to go

One region

  • Asia-Pacific

One country

  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing100% disbursed

LoanUSD 19,500,000
GrantUSD 500,000
Total GCF Financing
USD 20,000,000


Co-FinancingLoanUSD 20,000,000
Co-FinancingLoanUSD 15,000,000
Co-FinancingLoanUSD 5,000,000
Total Co-Financing
USD 40,000,000

GCF Contacts

General media inquiries

GCF Communications
Phone +82 32 4458 6338 (KST)
Send e-mail

Request for information

GCF Information Disclosure
Request information about this project

Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155 (KST)
Send e-mail

Accredited Entity

XacBank LLC (Mongolia)
Ms. Tuul Galzagd
Director, Eco Banking Department
XacBank Headquarters Building, Post Branch 20A, P.O. Box 72, Ulaanbaatar, Mongolia
Phone +976 7577 1888
Mr. Enkh-Erdene Erdenekhuyag
Project Development Officer
XacBank Headquarters Building, Post Branch 20A, P.O. Box 72, Ulaanbaatar, Mongolia
Phone +976 7577-1888
More contacts

National Designated Authority

Ministry of Environment and Tourism
Mr. Batjargal Zamba
National Focal Point for the GCF
Suite 203, Margad Center 8th Khoroo, Student Street, Ulaanbaatar, Mongolia
Ms. Amartuya Batbold
Carbon and Climate Finance Specialist
15160 Government building 2, United Nation's street 5/2, Chingeltei district, Ulaanbaatar, Mongolia


News + Stories

GCF is supporting Mongolia’s ambition to pursue a low-emission future

10 Apr 2019 / And helping it adjust to the growing pains of rapid urbanisation