The GIZ project DIAPOL-CE cooperates with Bank of Mongolia to develop a customized climate-sensitive macroeconomic model for policy analysis. This so-called e3.mn model is calibrated on economic and climate data for Mongolia and can be used to map economy-wide effects of climate change, adaptation measures and mitigation measures.

This report highlights the potential of the model to quantify potential impacts from green loans when combined with targeted policy reforms that trigger investments. It discusses key measures in the areas of energy efficiency in buildings, renewable energies and sustainable agriculture, which currently account for the large part of green loans in Mongolia. It shows how these measures can be incentivised through green loans and presents the detailed direct and induced effects on specific sectors, GDP and employment (disaggregated for gender) supporting evidence-based policy making.