PMI Targeted Support
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Program Overview
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Mongolia is steadily advancing its climate policy and carbon market agenda, combining ambitious domestic initiatives with growing international engagement. Domestically, the government launched its Billion Tree National Movement in 2021 to combat desertification and boost carbon removals, while also strengthening institutional frameworks for REDD+ through a national strategy, monitoring systems, and safeguards.
Regarding carbon markets, Mongolia has prior experience with several major international standards and certification schemes primarily in energy efficiency and renewable energy and is now scaling up cooperation under Article 6 through bilateral agreements with Japan, Korea, and Singapore. Notably, in April 2025, the government launched its draft "Law on Climate Change" for public consultation, which includes a dedicated chapter on carbon markets—signaling its intention to establish a comprehensive legal basis for future participation in international carbon markets.
Objectives & Activities
The Partnership for Market Implementation (PMI) Program in Mongolia aims to support the country in preparing for participation in international carbon markets under Article 6 of the Paris Agreement, by providing technical assistance on:
- Assessment of existing legal and regulatory frameworks: assess existing climate-related regulations and recommend the most effective legal, regulatory, and policy framework to establish the legal foundation and governance for Article 6 authorization and corresponding adjustments in Mongolia
- Development of a carbon market framework: to provide strategic direction for Mongolia’s participation in carbon markets, setting out the policy foundation, institutional structures, and regulatory framework required for successful and transparent implementation
Additional Resources
Country Market Based Approach
Emissions Trading
International Carbon Markets