The municipality has signed a Memorandum of Understanding with the banking institutions to implement the Excellence for Design and Greater Efficiencies (EDGE) Green building standards.

The new standard will be adopted as part of the Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project.

The $570.2 million project has been designed to build affordable, climate-resilient and livable eco-districts with support from the Green Climate Fund and the High-Level Technology Fund.

Of the $570.2 million in funding required for the project, $350 million is coming from the private sector.

Out of 10,000 homes in the 20 districts, 1,500 will be social housing, 5,500 will be affordable housing and the remaining 3,000 will be sold at the prevailing market price.

IFC has tasked the Mongolia Ministry of Construction and Urban Development and Energy Regulatory Commission to assess the viability of adopting the new energy-efficient building standard.

The project is being implemented in partnership with the Energy Sector Management Assistance Programme which is administered by the World Bank and the Government of Hungary.

“About 850,000 people live in Ulaanbaatar’s ger areas and have poor access to urban services,” said ADB Principal Urban Development Specialist Mr. Arnaud Heckmann.

“An IFC analysis sees a $3.4 trillion green buildings market through 2025 in developing countries. Against this backdrop, green construction can help a rapidly urbanizing city like Ulaanbaatar become more livable—while saving money and securing emission cuts,” said IFC’s Resident Representative in Mongolia Mr Rufat Alimardanov.

A third of Mongolia’s population lives in urban ger areas, or settlements of low- and middle-income households. These districts suffer from poor sanitation, inadequate solid waste management, and limited water supply, which pose health and environmental hazards