The Ministry of Environment and Tourism (MoET) and The Nature Conservancy (TNC) jointly held a press conference and announced the establishment of the Conservation Trust Fund in Mongolia publicly.
The Conservation Trust Fund is going to be established to mobilize and manage resources and implement long-term conservation programs under the sustainable development framework.
Quote: Bat-Erdene Bat-Ulzii
The Conservation Trust Fund will accelerate our conservation efforts for the protection of biological diversity, including reducing greenhouse gas emissions by 22,7% by 2030, as set out in our National Determined Contributions, and to create a new sustainable financial system for conservation
“It will also help us to achieve the national commitments, such as the sustainable development goal—2030 targets and vision—2050, Mongolian long-term development targets,” continues Bat-Erdene. B, Minister of Environment and Tourism.
According to a study conducted by the UNDP, 44.4% of the total cost of nature protection comes from the state budget, and the remaining 55.6% comes from international donations and aid, salaries and other operational expenses account for about 80% of the total spending of the national protected areas, while the expenses for conservation measures are still insufficient. Therefore, the Conservation Trust Fund is crucial to be established to mobilize and manage resources through a varied range of funding sources, including bi and multilateral donors, private foundations, private companies’ donations, public budget, proceeds of investments, proceeds of financial mechanisms, etc.
Quote: Jeffrey Parrish
For this fund, the TNC is committing with donors to secure US$71 million through Project Finance for Permanency. Conservation Trust Funds have been rapidly growing internationally over the past 20 years.
Internationally, a total of 108 trust funds have been established, and more than 60 of them are stabilized and strengthened over time, and they manage assets of about 2 billion US dollars.
Following international best practices, the Mongolia CTF will adopt detailed policies and procedures for transparent and equitable grantmaking; robust and science-based monitoring; technical and audited financial reporting; and development of new financial solutions to increase funding for conservation. The fund was designed to be a permanent player in Mongolia, supporting the implementation of the country’s public policies and commitments and financing project implementers.
The Mongolia CTF is part of the Eternal Mongolia initiative, a Project Finance for Permanence (PFP) project coordinated by the government and TNC. The fund establishment counted with the support and inputs of multiple partners, including: the German Gesellschaft für Internationale Zusammenarbeit (GIZ) Mongolia, the Wildlife Conservation Society – WCS, the Biodiversity Foundation, UNDP – Biofin, the citizenship council; and several public entities, including the Ministry of Finance, Bank of Mongolia.
CTFs are independent, non-governmental, non-profit legal entities that manage conservation funding streams and make grants to implement conservation activities that support biodiversity protection, restoration, conservation and sustainable development. They bring together multiple stakeholders under their governance system, including government, private sector, NGOs and community representatives.