Increasing agriculture productivity and a push for rural development is among the top priorities of the Government of Mongolia and is part of its New Recovery Policy based SDG Accelerators. This initiative will not only catalyze diversification of the economy, but also decentralize economic activity from the capital to the regions and provinces to address rural to urban migration by creating economic and employment opportunities in rural areas.

Focusing on SDG target 2.3 can positively impact other SDGs such as poverty and hunger [SDG 1,2] good health [SDG 3], water and sanitation [SDG 6], energy [SDG 7], jobs [SDG 8], and reducing inequalities [SDG 10], including the provision of opportunities and resources to women in rural areas [SDG 5]. The synergies with renewable energy generation to provide access to low-carbon energy for rural enterprises such as agricultural processing industry - as emphasized in rural revival policy – will trigger a larger multiplier effect on all the SDGs via SDG7.

The “Food Supply and Safety” national campaign, initiated by the President of Mongolia is focusing on establishing and developing clusters, raw material supply chains and transport and logistics networks in line with regional development, protecting livestock health, providing fiscal and financial incentives, and unlocking private sector capital. To increase agriculture and rural development the government is providing fiscal and financial support for agriculture and food sector enterprises that are newly created.

In its urban and rural revival policy the Government is placing emphasis on increasing rural development. This new policy will increase the population of large settlements by 20 percent while creating 600 new jobs in rural areas and 700 new jobs within the framework of energy revival. The energy sector development will broadly support rural economic development as new renewable and hydro energy projects will be located across the country.

Synergies with other SDGs will reinforce overall SDG acceleration due to interlinkages, yet trade-offs are also possible via negative impacts if action on other SDGs are not coordinated. An increase in economic activity in rural areas may trigger deterioration in health and wellbeing (SDG-3), clean water and sanitation (SDG-6), responsible consumption and production (SDG-12), and life on land (SDG-15).

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Improving access and quality of health services is among the top-level priorities for Mongolia. As stated in the Vision 2050 and on the SDG National commitments, the Government of Mongolia identifies health as an accelerator for development, which stems from the recognition that a healthy and thriving population forms the foundation for sustainable progress.

Investments on SDG target 3.8 can have multiple positive effects on a vast range of development outcomes, such as reducing poverty and inequalities [SDG 1, 10], quality education (SDG4), human capital and labour productivity [SDG 8].

Despite significant progress in improving healthcare access and quality over the years – as reflected by the national statistics of 85 percent of coverage rate of essential healthcare services in 2020 - several challenges persist in healthcare. The country's vast and sparsely populated geography, coupled with harsh climatic conditions, has posed obstacles to delivering healthcare services to all citizens, particularly to women and those residing in rural and remote areas.  While Mongolia's healthcare expenditure need has increased over the years, the funding remains a challenge. The government's constrained ability to allocate sufficient resources to the healthcare sector affects the quality and availability of services.

To enhance the quality and accessibility of the healthcare system in the country, the Government will focus its efforts on expanding e-health, setting up a national health insurance system, improving the capabilities of domestic organ transplant and cancer treatment facilities, and elevating the standards of domestically available medicines.

Promoting a productive workforce is crucial for Mongolia's government, as reflected in several strategies and polices. A skilled workforce is essential for driving economic growth and diversification, enhancing employability and reducing unemployment rates [SDG 8] -particularly important for the youth that face high levels of unemployment (19.4% asof 2022) and can benefit from the integration of innovation and technology in various sectors.

Access to relevant skills enables individuals to break the cycle of poverty [SDG 1] and canalso support and accelerate the process of digital transition. The successful integration ofdigital technology into various sectors requires a workforce that understands and caneffectively develop and utilize relevant and innovative technologies and tools. Targetedinvestments on SDG Target 4.3 (Quality Vocational and High Education) together with SDGTarget 3.8 (Universal Health Coverage) can also create a mutually reinforcing dynamicsthat improves human capital, (SDG 3,4,5) enhances workforce capabilities, reducespoverty ([SDG-1), and builds concrete acceleration pathways for sustainable developmentin Mongolia.

While Mongolia has an impressive rate of literacy (99 percent) and enrollment, thevocational and higher education systems are weak and there is still a need to improve thequality and effectiveness of education. The learning outcome needs to commensurate withyears of schooling. The skills supplied by the education sector are not matching labormarket needs. Also, higher and quality education provision is concentrated mainly in urbanareas and needs to reach the rural population. Consequently, the proportion of youth aged15–24 years not in education, employment or training is high, at around 18 percent.

To increase youth employment, the Government focuses on improving the vocational education and training system to meet its priorities in development and to provide students with high professional skills, as stated in Vision 2050.

Improvements in renewable energy, energy efficiency, and clean energy technology are imperative for Mongolia's just energy transition and can serve as a catalyst for economic diversification and decentralisation of its developmental trajectory.

Mongolia's demand for energy, electricity and heating has been increasing by 5 to 7% per annum over the past years due to population growth, urbanization, and economic development, which is stressing the existing energy infrastructure. Coal power generation is the largest contributor to CO2 emissions. The government has pledged to

decrease greenhouse gas emissions by 22.7% by 2030. Currently, Mongolia is lagging behind on its target for increasing the share of renewable energy in total final energy consumption and increasing renewable energy intensity in its primary energy sources.¹

In its Voluntary National Review (VNR) 2023 the government of Mongolia
has acknowledged the need for increasing focus and investment on renewable energy and is committed to creating an enabling environment for low-carbon energy transition and financing.

Achieving SDG Target 7.2 will have a cascading impact on other SDGs as SDG target 7.1 will impact all other SDG7 targets, including target 7.3.

¹ GOM VNR 2023

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Mongolia's path to achieving elevated economic productivity hinges on a strategic blend of economic diversification, development decentralization, technological upgrading, and innovation. A heavy reliance on mining in Mongolia has resulted in higher economic vulnerability to global market fluctuations, especially variation in global commodity prices. This can lead to significant economic shocks, affecting government revenue, foreign exchange, and employment. By expanding beyond traditional sectors (mining, and herding animals) and venturing into emerging industries such as renewable energy, technology, services sector, agribusiness and agricultural and food processing, Mongolia can fortify its economy against volatility while tapping into new sources of growth. Simultaneously, investments in education and skill development must empower the workforce to embrace these modern industries.

Central to this endeavor is a concerted focus on labor-intensive sectors, nurturing a robust environment for startups and SMEs, and building efficient infrastructure that binds the economy together. For instance, investments in sustainable agriculture, food processing, cashmere, meat, copper, steel making, tourism, transit services, infrastructure, renewable energy, health, and education related technology sectors will provide opportunities for economic diversification. It also requires placing larger emphasis on supporting women's empowerment and access to finance to optimize the gains in productivity and economic diversification.

Achievements in 8.2 have the acceleration potential throughout the SDG framework, with reductions in poverty and hunger [SDG 1,2], sustainable use of resources [SDG 12] and affordable and clean energy [SDG 7].

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Mongolia's average air temperature has increased by 2.14°C over the past 70 years, which is 2-3 times higher than the global average over the past 100 years. Due to its geographical location, vulnerable ecosystem, people's nomadic lifestyles and economic system, Mongolia is one of the countries that are susceptible to the impacts of climate change making it vulnerable and putting it at high-risk in terms of threats to its social-ecological system. Thus, it is important to strengthen the capacity of vulnerable groups in Mongolian society and provide support to key economic sectors to adapt to climate change to strengthen their resilience thereby ensuring sustainability of Mongolia's economy, preserving its unique biodiversity, and safeguarding the well-being of its people.

To boost the nation's disaster management capabilities, the Government will prioritize policy actions in the NDC and Vision 2050, aimed at strengthening the disaster prevention systems against various hazards and natural calamities. This will involve enhancing the capacity of early warning systems for climate and weather-related hazards, constructing wastewater treatment and recycling facilities, and expanding surface water storage.

Investments on SDG Target 13.1 can have multiple synergies across a vast range of development outcomes. A resilient and adaptive society provides stable needs for the people and therefore contributes to accelerating the elimination of poverty and hunger [SDG 1, 2], enhancing the provision of water and sanitation [SDG 6], as well as increasing economic productivity [SDG 8], access to safe and affordable housing [SDG 11], and efficient use of natural resources [SDG 12]. However, trade-offs may negatively impact SDG linkages due to the development related investments.  

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