Result of Service

Under the general supervision of the Economic Affairs Officer of the Financing for Development Section (FfDS), Macroeconomic Policy and Financing for Development Division (MPFD), the consultant will undertake the following tasks:

1. Increase the BoM’s understanding of climate risks and climate change impacts on the country’s economic and monetary policies.
2. Conduct local research and gather primary data related to economic and financial risks of climate change in Mongolia and their direct and transition impacts in Mongolia for the next 3 decades feeding into the initial inception report.
3. Identify and liaise with local experts and institutions for insights on the economic impacts and financial portfolio-related impacts of climate change specific to Mongolia.
4. Collect case studies and data on the impact of climate-related risks on Mongolia’s bank portfolios, monetary policy and operations.
5. Collect data and research on the impact of climate-related risks on monetary policy transmission and operations, and review and map international best practices related to monetary and financial policy actions operations towards greening the Bank of Mongolia within the second quarter of the contract;
6. Compile local and international best practices that are relevant to greening the Bank of Mongolia, particularly using the most current guidance from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).
7. Gather information on legal mandates and regulations that pertain to the Bank of Mongolia’s role in tackling climate-related risks.
8. Assist in identifying the most effective monetary and financial policy instruments for Mongolia based on local conditions.
9. Collect data and local inputs for the draft action plans on adapting to and mitigating climate-related risks.
10. Assist in the compilation of local stakeholder feedback for the final report.
11. Prepare workshop/training materials with a focus on local relevance and context.
12. Coordinate logistics for the suggested workshops and invite relevant local stakeholders.
13. Help in the development of training materials and the documentation of methodologies and processes for the study.
14. Conduct research on ESG guidelines and regulations.
15. Help in compiling a final report on disclosure and climate taxonomy in Mongolia by gathering data, case studies, and stakeholder inputs.
16. The consultant will coordinate effectively with the appointed consulting firm who will be undertaking the project’s research and analysis. The consultant’s role will be to ensure that the documents produced are thorough and locally relevant.

Work Location

Ulaanbaatar, Mongolia

Expected duration

23 October 2023 – 31 March 2024

Duties and Responsibilities

Climate change poses a substantial and escalating risk to Mongolia’s financial system, affecting various sectors that are critical to the economy. The country is experiencing increasing temperatures at a rate three times faster than the global average, rising more than 2 degrees centigrade, contributing to extreme weather events such as droughts, severe winters, and desertification. These climate-induced challenges are especially damaging for key economic sectors like agriculture, mining, and infrastructure, thereby introducing a layer of risk to financial institutions heavily invested in these areas. For instance, the agriculture sector accounts for approximately 14 per cent of GDP and employs around a third of the Mongolian workforce, as of 2019 data. Disruptions in this sector due to climate-related impacts can lead to loan defaults, reduced collateral value, and an increase in non-performing loans, jeopardizing the stability of the country’s banking system. Furthermore, Mongolia’s susceptibility to climate risks poses a threat to investor confidence, affecting capital flows and foreign investments crucial for the nation’s development. Therefore, integrating green finance considerations and risk management practices, following international best practice into Mongolia’s financial sector policies is imperative for mitigating these risks and fostering sustainable economic growth.

The Bank of Mongolia (BoM) has set forth an objective to minimize the adverse effects of climate change by greening the financial sector as a critical goal of its 2022 Monetary Policy Guidelines. Within this context, BoM aims to introduce and enforce commonly accepted concepts and principles of green and sustainable financing in the banking sector, identify and assess various climate change risks that may affect the financial system, and strengthen the financial system’s resilience to these risks.

United Nations Economic and Social Commission for Asia and the Pacific, with funding support from the NDC Partnership, will provide readiness support to the Bank of Mongolia, for the greening of Mongolia’s banking system from 2023-July 2025.

The Green Finance Consultant will act as the in-country focal point to facilitate the implementation of the project. The consultant will undertake data gathering and provide research assistance for the policy papers/reports produced for the Bank of Mongolia, liaise with government officials and other stakeholders, facilitate consultations and meetings with country stakeholders, assist in the preparation of project missions, and work closely with the project team.

Overall, the Consultant will work to ensure the successful implementation of the project, with the ultimate objective of allowing the Bank of Mongolia to mitigate the monetary impacts and financial stability risks due to climate change.

Qualifications/special skills

• Advanced university degree in international economics, finance, environmental science, development studies or related fields.

• Expertise and understanding of banking regulations, financial instruments, and financial risk management is essential. At least 5 years of experience in sustainable finance or ESG is required.
• Experience working in Mongolia or similar economies is required.
• Previous consulting experience with banks, central bank, government bodies and familiarity with how government institutions function.

Applicants should provide at least two (2) research or publication samples that they have authored, along with their application. The research should ideally be related to green or sustainable finance. Please provide links to previous publications you have authored or attach them with your application.

Languages

Fluency in English is required.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.