European Investment Bank (EIB) signed a deal with Mongolia that could unlock up to €1 billion in investment for renewable energy, power networks, and sustainable transport as the country works to diversify its energy mix, officials announced at the first Mongolia-EU Business and Investment Forum in Ulaanbaatar.
The partnership between the European Investment Bank’s development arm and the Mongolian government has full support from the European Commission and creates a pathway for major new investment in clean, affordable energy for people and businesses. The agreement aligns with the EU Global Gateway strategy and Mongolia’s Vision 2050, focusing particularly on wind and solar projects while also opening opportunities for cooperation in digital, transport, health, education, and research sectors.
Mongolia relies heavily on coal for electricity generation but has huge potential for renewable energy development given its vast wind and solar resources. The landlocked country between Russia and China faces growing energy demands as its economy develops, while also feeling pressure to reduce emissions and improve energy security. Current power systems need modernization to handle renewable energy integration and meet growing demand from households and businesses. The country’s strategic location makes it important for regional energy cooperation and trade.
EIB Vice-President Teresa Czerwińska said “Mongolia has vast potential for renewable energy, from wind and solar to infrastructure designed for sustainability and climate resilience.” EU Ambassador Ina Marčiulionyte noted the partnership “deepens the strategic partnership between the European Union and Mongolia while delivering real benefits for people and communities.” Deputy Prime Minister Dorjkhand Togmid called diversifying the energy mix “a national priority” and said the partnership will “help Mongolia harness its renewable potential, support private sector development, modernize our power systems, and create jobs in the green economy.”
EIB Global will work with Mongolian authorities to identify and prepare eligible projects in priority areas, with particular focus on clean energy and private sector development. Final investment volumes will depend on the pipeline of projects developed jointly with Mongolian partners and EU support. The reference to €1 billion is indicative and doesn’t constitute a binding financial commitment, but signals the scale of potential cooperation.
The memorandum represents a milestone in Mongolia’s clean energy transition and demonstrates growing European engagement in the region. By combining European expertise with Mongolia’s renewable potential, the partnership aims to advance innovation, energy security, and sustainable growth while creating quality jobs and building skills for the future.
