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Define and establish economic incentives to conserve and sustainably use biodiversity

Describe a measure taken to contribute to the implementation of your country’s national biodiversity strategy and action plan

In the context of existing laws in Mongolia, the economic mechanisms for protecting and proper use of the biodiversity have two-way regulation. First, polluter pays principle that require paying a fee if it pollutes the environment, such as water and air; Second, incentives for those who reports on illegal actions against biodiversity to the relevant state authorities and receive encouragement incentive if the information is correct.

Fee for pollution:

According to the Law on Fees for Water Pollution, citizens, economic entities and organizations that use water and mineral water resources and the pollute water quality shall pay water pollution. The fee size is subject to the type and quantity of pollutants in the water. The law was amended in 2017 to include changes in water pollution payments to the Environment and Climate fund use of the fee for the protection of water, water pollution, monitoring and restoration measures. The law also provides a specific incentive mechanism. For example, water pollutants are exempt from the following

conditions:

- By the amount of waste water is cleaned up to the level of water quality standard;

- By the amount of grey water that was recycled and re-use the plant or service.

The Law on Air Pollution Payment is regulating since 2010 the issues around air pollutants, payment for air pollution, payment rates and exemptions. According to paragraph 8.1 of this law, if raw coals are used for deep coal processing and produced by a new type of fuel these are exempt from fee.

Incentive to report illegal activities:

According to Article 38.1 of the Law on Fauna, a person who provided assistance or information to a person who violated the Law on Fauna or provided information about it violated the Law on Fauna, the levy was awarded 15 per cent of the fines and reimbursements imposed by the violator.

The Forest Law and the relevant provisions of the Law on Environmental Protection also provide some incentives. These include:

- To encourage citizens, forest cooperatives, economic entities and organizations to mitigate adverse environmental impacts and to introduce advanced technologies;

- Provide incentives to citizens giving true information about violations of forest legislation;

- The incentives shall be granted to an official who has found the illegally timber crimes and violations.

There are recent proposals and initiatives from foreign projects, private sector and non-governmental organizations to develop and test alternative economic incentives for stimulating the sector to protect and effectively use of biodiversity. The MNET, MBA, Ministry of Finance, Green World

Development Organizations have jointly established the Green Development Fund to support private sector and individual’s initiative and investments for heat loss reduction, energy savings, and other environmentally friendly initiatives. There is a step towards creating a green loan product with low interest rate and flexibility.

The XAS Bank, Mercy Corps International Centre, and the Centre for Policy Research have pilot implemented soft loans for pastureland management under the "Green Pasture" project, which is being implemented in Bayan-Ovoo county of Khentii province in December 2018.

Other Banks such as Khaan Bank, also started considering to support herders who have complied with pasture carrying capacity through loans with low market interest rates. The UNDP-funded

"Sustainable Value Chain Network" project aims to support long-term cooperation between cashmere value chain producers - herders and processors. The project aims to increase herders 'income by reducing pasture degradation by expanding herders' cashmere preparedness and quality, introducing a system of discriminatory assessment based on quality, expanding cooperation with the private sector and supporting inclusive businesses.

3. Other forms of incentives. The Government of Mongolia and the Ministry of Nature, Environment and Tourism have initiated some incentives to introduce other forms of incentives. In 2017, the Resolution No. 290 of the Government renewed the approval of the "Regulation on incentives for citizens, business entities and organizations introducing environmentally friendly technologies" and subsequently regulating them. For example:

- Issuance of "green certificate" to citizens, business entities and organizations that introduce environmentally friendly technology

- Eco-signage for products and services that reduce the adverse environmental impacts may result in further results.

For the implementation measure, please indicate to which national or Aichi Biodiversity Target(s) it contributes

Assessment of the effectiveness of the implementation measure taken in achieving desired outcomes:

Measure taken has been effective

Measure taken has been partially effective Measure taken has been ineffective Unknown

Please explain the selection and where possible indicate the tools or methodology used for the assessment of effectiveness above

The NPBD’s expected midterm output under this Objective were:

 By 2018, the economic instruments supporting the conservation and sustainable use of biodiversity is defined.

 By 2020, the economic instruments supporting the conservation and sustainable use of biodiversity is reflected in policies and legislations of the relevant economic sectors.

In the context of existing laws in Mongolia, the economic mechanisms for protecting and proper use of the biodiversity have two-way regulation. First, polluter pays principle that require paying a fee if it pollutes the environment, such as water and air; Second, incentives for those who reports on illegal actions against biodiversity to the relevant state authorities and receive encouragement incentive if the information is correct.

Despite the existence of a legal framework for economic mechanisms that promote the protection and proper use of biodiversity, there is a lack of comprehensive research on the status of their

implementation.

There are some initiatives that have been implemented with private sectors, notably with commercial Banks to support initiative and investments for heat loss reduction, energy savings, and other

environmentally friendly initiatives.

Relevant websites, web links and files (Please use this field to indicate any relevant websites, web links or documents where additional information related to this assessment can be found).

https://www.legalinfo.mn/law/details/8684 https://www.legalinfo.mn/law/details/30 https://www.legalinfo.mn/law/details/8670 https://www.legalinfo.mn/law/details/12171 https://www.legalinfo.mn/law/details/8935

https://mba.mn/sustainable-finance-in-mongolia-mn/

Энх-Амгалан, А. (2019). Хэнтий аймгийн Баян-Овоо суманд мал аж ахуйн хөгжлийн шинэ загвар нэвтрүүлж байна. Өдрийн сонин 2019.02.25, №038, 039 (61398 6140). Улаанбаатар:

Бодлого судлалын төв, www.cpr.mn.

Goal 13. Taking into account the value and importance of pasture, water resources and forest