This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/9/2017

Overview
Mongolia’s increasing demand for energy as well as hazardous air pollution affecting the health of its population is pressuring the government to take energy conservation seriously.  Energy efficiency figures prominently in Mongolia’s National Green Development plan approved by Parliament in June 2014.  For example, the government aims to reduce greenhouse gas emissions in the energy sector through the increase of energy efficiency by 20 percent by 2030, while it seeks to reduce building heat losses by 20 percent and 40 percent by 2020 and 2030, respectively.  The government’s National Green Development plan states that the government will increase investment in energy efficiency and green development by two percent of GDP annually for an unspecified period of years.

According to the Energy Conservation Law, the Energy Conservation Council (ECC) will be a major player in this sector.  Working under the supervision of the Energy Regulatory Commission, the ECC will be responsible for implementing energy conservation-related state policy and legislation, formulating national energy conservation programs, registering designated consumers, tracking and monitoring metrics and performance, and issuing licenses for energy auditors and energy managers.

 
(In Millions USD)
 

2013

2014

2015

 
2016
 

Total Local Production

4,388

6,127

5,092

4,678

Total Exports

4,269

5,774.3

4,669.5

4,046

Total Imports

6,358

5,236.7

3,797.2

3,466

Imports from the U.S.

512.7

229.5

116.5

55.6

Total Market Size

6,477

5,590

4,220

4,098

Exchange Rate: 1 USD

1,524

1,818

1,970

2,130

Data Sources:
Total Local Production:  National Statistics Office of Mongolia
Total Exports:  Bank of Mongolia  
Total Imports:  Bank of Mongolia
Imports from U.S.:  U.S. Census Bureau

Leading Sub-Sector Opportunities
In November 2015, the government passed the Energy Conservation Law, which will require designated large energy consumers in Mongolia to conduct an energy audit and to take appropriate measures to conserve energy.  As a first step, these designated consumers — 99 large businesses and public institutions at latest count — must reduce energy consumption by 15 percent.  The number of designated consumers will also expand in the future to include smaller entities.  The government plans to provide incentives and levy penalties to ensure enforcement of the law.

Given the new ECC, U.S. energy service companies engaged in diagnostics and energy management will have growing opportunities in Mongolia.  These U.S. companies could potentially deliver consulting services directly to the designated consumers or partner with local engineering companies to provide technology and know-how to improve energy efficiency.   

In addition, the governments of the United States and Mongolia are working together to develop local capacity to implement Cold Weather Engineering Principles (CWEP) in Mongolia to improve basic living conditions of under-served, impoverished Ger district residents of Ulaanbaatar.  Ulaanbaatar’s population has nearly doubled in 14 years, outstripping the government’s ability to provide essential services in an area where winter temperatures routinely drop below -40F degrees and residents are forced to burn coal, wood, trash and animal dung to stay warm.  These workshops would introduce construction principles which will improve insulation, air quality, hygiene, and industrial health and safety.  Through a series of workshops and joint construction projects, both governments aim to improve basic living conditions by increasing links between Mongolian engineers, the Mongolian construction industry and U.S. construction firms with expertise in CWEP.

Web Resources
Mongolian Resources
American Chamber of Commerce in Mongolia
Bank of Mongolia
Business Council of Mongolia
Customs General Administration    
Embassy of Mongolia, Washington, DC
General Agency for Intellectual Property and State Registration
General Agency for Specialized Inspection    
General Authority for Social Insurance
General Tax Authority of Mongolia
Government of Mongolia    
Ministry of Construction and Urban Development
Ministry of Energy
Ministry of Nature, Environment, and Tourism
Ministry of Roads and Transport
Mongolian Builders Association   
Mongol National Chamber of Commerce and Industry
National Statistics Office of Mongolia
Parliament of Mongolia   

U. S. Resources
U.S. Embassy in Mongolia Commercial Specialists:  Ulaanbaatar-Econ-Comm@state.gov
U.S. Embassy, Ulaanbaatar
U.S. Department of Commerce
U.S. Department of Commerce Advocacy Center
U.S. International Trade Administration
U.S. Trade and Development Agency
U.S. Export-Import Bank
U.S. Overseas Private Investment Corporation
U.S. Department of State

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