Central Bank of Mongolia presents results of Mongolia’s first climate scenario analysis involving six banks

The Central Bank of Mongolia presented the results of Mongolia’s first bottom-up Climate Scenario Analysis (CSA) in a workshop, setting out how the pilot assessed climate-related financial risks across participating banks. The CSA was conducted with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) under the “Readiness Support for Greening the Bank of Mongolia” project funded by the NDC Partnership, which aims to integrate climate risk and impact assessments into the central bank’s policies and operations. The pilot covered five systemically important banks and one voluntarily participating bank. It applied three climate transition scenarios and two physical risk scenarios focused on drought-dzud and flooding, and assessed transition risks linked to financed emissions. Participants from the central bank, commercial banks, the Mongolian Sustainable Finance Association, relevant meteorology and emergency management agencies, the Mongolian Mortgage Corporation and development partners discussed implementation challenges, the experiences of the participating banks and potential next steps. The central bank indicated the CSA is intended to support broader participation by banks and other financial institutions in future exercises.