Mongolia is committed to accelerating its transition to a low-emission, climate-resilient development pathway by tackling critical barriers to mobilizing financial resources and implementing transformative climate projects. To achieve the targets set in its second Nationally Determined Contribution (NDC) and enhance ambition for the third NDC in 2025, Mongolia must align and scale up public and private financing flows. However, significant challenges persist, including gaps in institutional capacity, weak regulatory frameworks, and a lack of tools essential for  carbon market development. 

Mongolia continues to face difficulties in establishing functional carbon markets and operationalizing mechanisms under Article 6 of the Paris Agreement. 

This readiness request, supported by GCF, addresses two key barriers: 

1. Limited capacities to understand and implement carbon market instruments in alignment with national goals.  
2. Insufficient institutional and legal frameworks for carbon market implementation.  

By addressing institutional, technical, and regulatory barriers, this initiative will support Mongolia in achieving its climate and development goals while establishing a foundation for long-term, sustainable climate finance. The proposed activities are directly aligned with Mongolia’s Vision 2050 and its commitment to low-carbon, climate-resilient growth.