Opening remarks by Norbert Mumba, Deputy Executive Director, AFI

Dear Bayarsaikhan Dembereldash, Chairman of the FRC, Tsend-Ayush Tuvshintur, Executive Director of Corporate Governance Development Center (CGDC) LLC, FRC’s partner, FRC staff, coordinating this training, Participants from non-bank financial institutions from across the country

First and foremost, congratulations to the Financial Regulatory Commission of Mongolia for organizing this training. This is a significant event that is reflective of FRC’s and Mongolia’s commitment to environmental and climate change that only shows that even amid this COVID-19 global pandemic, climate and environmental action remains a priority.

Climate change is already witnessed, and it’s affecting all of us. Experts not just from the scientific community but also from the financial sector have spoken. The projected risk impacts are enormous and unprecedented. Those at the base of the pyramid will be disproportionately affected.

Such impacts present risks to the financial systems. Thus, the need to expand risk frameworks to consider these risks, and the need to support financial flows towards activities that are geared at building adaptation capacities of climate-sensitive sectors as well as activities that are meant to reduce carbon emission or leaves lesser carbon footprints.

Financial regulators across the globe are becoming proactive in these policy realms to mitigate the impact of physical and transition risks brought about by environmental and climate change. Mongolia is among those who are leading these efforts. Across the AFI network regulator are stressing the importance to bring to the fold the importance of inclusiveness amid all these actions to ensure that no one is left behind.

Here in Mongolia you are playing a key role. The importance of green loans for MSMEs is huge. How they can be supported, empowered and incentivized to buld their own resilience to climate change, but also reduce their own negeative impacts on the environment. 

The Alliance for Financial Inclusion network is collectively progressing climate and environmental action through its inclusive green finance workstream. We aim to promote resilience building and mitigation actions through financial inclusion.

Activities such as these are one of the things that we drive in our in-country implementation to ensure that inclusive green finance is mainstreamed in the financial sector. That those at the base of the pyramid while helping them build resilience through access to financial services can also contribute to global action in combating climate change.

We all have a role to play in building resilience and mitigating climate and environmental change. Financial sector players are critical in influencing actions toward low-carbon development and most especially in ensuring a green, inclusive and sustainable pathways. You are at the forefront of all these!

Congratulations again to FRC for taking such a huge initiative to share knowledge to whole sector. Have a wonderful training and wishing you all best in future efforts in greening the financial system in Mongolia.

AFI’s Inclusive Green Finance (IGF) workstream is part of the International Climate Initiative (IKI)  supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), based on a decision of the German Bundestag.