Accelerating Mongolia’s just energy transition

In winter, as temperatures often fall below –30 °C, Ulaanbaatar—the world’s coldest capital—chokes under heavy, toxic coal smoke. For residents of Ulaanbaatar and other urban centers, winter brings not only bitter cold but suffocating smog that endangers both health and livelihood. 

Ms. Gantuya, a mother of three living in the city’s sprawling ger – traditional round felt tents- areas in Chingeltei District of Ulaanbaatar, enduring the bitter cold was just one challenge.    

Coal-driven air pollution is harming people's health. UNICEF reports that air pollution has devastating effects on citizens’ health—especially children and pregnant women exposed to toxic pollutants—leading to a higher incidence of stillbirth, preterm birth, pneumonia and other respiratory complications.  

“My eldest daughter’s dust allergies made her miserable in the dusty, coal-smoke-filled air,” said Ms. Gantuya, featured in a UNDP Mongolia’s story. 

A bright shift is emerging in Mongolia’s renewable energy story, with Ms. Gantuya among 68 households proving that the transition from coal to clean power is not only bold but possible. 

“Our home is warm and clean, and there’s no black smoke anymore. The solar system eliminated the need to purchase and transport coal, saving both time and money. My son has more time to study instead of chores to collect coals and my daughter’s allergies have improved,” Gantuya recalls. 

The pilot ‘Solar Facility’ project by UNDP Mongolia introduced solar-powered heating and demonstrated it as a clean alternative to coal. Using photovoltaic systems with smart meters, it cuts emissions, improves air quality, withstands Mongolia’s harsh winters, and enables carbon credit tracking. 

UNICEF Mongolia is also contributing to the country’s transition from coal to low carbon and renewable energy by demonstrating multi-source low carbon heating for harsh climates. For instance, renewable energy systems now power five rural primary schools and 10 soum health centers, while solar-enabled WASH facilities reached 37,490 people in ten provinces.  

Thanks to UNICEF’s flagship CHIP package, over 25,000 people now enjoy warm, clean homes—free from coal—through electric heaters, modern appliances, and improved insulation in 6,000 ger households across 13 provinces and four districts of Ulaanbaatar by 2025.  

Amaasuren, an elderly man who lives with his wife, shared that he previously struggled with bringing coal into their home during the heating season. Shiting to this new heating stove has reduced their workload by nearly 50 percent and eliminated the risk of slipping on ice, giving them safety and peace of mind.

From Pilot to Expansion, paving the way for Clean Energy Policy Reform 

With over 90% of energy still coal-based, Mongolia has set ambitious climate goals to transition from coal to clean energy under its Nationally Determined Contribution (NDC) 3.0 and Vision-2050. With solar and wind potential exceeding 2,600 GW3, Mongolia aims to raise renewables to 30% of installed capacity by 2030—up from 18.3% in 20234. Yet only 0.06% of its vast renewable potential is used.  

Pilot initiatives by UNDP and UNICEF have demonstrated strong results, reducing household coal use and improving quality of life. Building on these pilot initiatives, the Government is committed to expanding renewable-driven heating and energy solutions for households, while leveraging carbon market opportunities to ensure long-term sustainability. With partner support, households have already begun supplying surplus electricity to the central grid and generating income.  

These locally rooted outcomes are now informing national regulatory frameworks, carbon policy and international climate finance. In particular, the UN Mongolia supported the Government in elaboration of its Just Energy Transition Framework (JETF)—a comprehensive plan balancing environmental, social, and economic priorities. Backed by the Joint SDG Fund and led by the UN Resident Coordinator with UNDP, UNICEF, and UNESCAP, this policy framework promotes clean energy, SME growth, and green infrastructure, ensuring vulnerable communities benefit.  

As UN Resident Coordinator Jaap van Hierden noted, the Framework places people at the heart of Mongolia’s energy transition, fostering decent work and resilience across all communities. 

By 2035, the Framework is expected to evolve into Mongolia’s own national compass for equitable and resilient energy transition.  

Ms. Matilda Dimovska, UNDP Resident Representative in Mongolia, highlighted that the country’s energy future must be both green and just – cleaner systems that create opportunity and leave no household, worker or region behind.

Mr. Khicheengui Jantsan, Director-General of the Policy and Planning Department of the Ministry of Energy, reiterated the Government’s full commitment to advancing Mongolia’s Just Energy Transition, noting that the Framework provides a shared path to achieve national energy and climate goals in line with both domestic priorities and international commitments. 

Financing Mongolia’s Clean Energy Transition 
Mongolia’s Just Energy Transition Framework (JETF) integrated climate financing mechanisms and inclusive roadmaps for health and education, ensuring no one is left behind. Achieving this transition will require USD 10–16 billion by 2035 and will need rigorous resource mobilization instruments to attract blended financing from public, private, and international partners. 

The Solar Facility Project was made possible with funding from UNDP’s Funding Windows (the Government of France), China International Development Cooperation Agency, and Chingeltei District, in partnership with Ulaanbaatar City, the Ministry of Environment and Climate Change. Local start up URECA and NGO Ger Hub brought the locally grown innovation, technical solution and mobilization of communities. 

UNICEF’s CHIP initiative is financed through a blended, innovative, and inclusive financing model, combining government subsidies, concessional green loans, and households’ own contributions.