Promoting energy-efficient retrofitting of prefabricated concrete residential buildings in Mongolia

Project description

Title: NAMA Support Project Mongolia: Energy Performance Contracting for Residential Retrofitting in the City of Ulaanbaatar
Commissioned by: German Federal Ministry for Economic Affairs and Climate Action (BMWK)
Co-funded by: Department for Business, Energy and Industrial Strategy (BEIS)
Country: Mongolia
Lead executing agency: Ministry of Construction and Urban Development
Overall term: 2022 to 2027

A large estate of prefabricated concrete residential buildings in Ulaanbaatar. Copyright: GIZ Mongolia


Ulaanbaatar, the world’s coldest capital city, is home to approximately half the Mongolian population. Around 20 per cent of Ulaanbaatar’s inhabitants live in prefabricated concrete residential buildings, which make up some 30 per cent of the city’s building stock and are poorly insulated. In the winter, when outside temperatures drop as low as minus 40 degrees Celsius, indoor spaces are also very cold and blighted by mould growth.

Improving the energy efficiency of old buildings is therefore a priority for the construction sector and is also included in Mongolia’s climate targets (nationally determined contributions, NDCs). Energy prices are highly subsidised, with energy costs calculated based on the size of the space heated rather than actual consumption. This in turn hampers investment in more efficient building structures and widespread energy saving measures. The transition to a low-carbon development pathway therefore remains constrained by technical, financial, political and institutional barriers.


The Mongolian Government is laying the foundations for an energy transition in heating systems for buildings.

A renovated residential building with freshly painted facade. Copyright: GIZ Mongolia


The project aims to overcome the lack of progress on thermo-technical rehabilitation and improve energy efficiency in prefabricated concrete residential buildings. It is working with the city administration in Ulaanbaatar and Mongolia’s Ministry of Construction and Urban Development.

It promotes energy efficiency in buildings via the following measures:

  • The project is creating an energy efficiency fund to ensure long-term financing for retrofitting prefabricated concrete residential buildings.
  • It will renovate around a third of all prefabricated concrete residential buildings in Ulaanbaatar by the end of the project term.
  • It is helping the government amend regulations to achieve more investment in energy efficiency.
  • The project is promoting institutional and technical expertise among those responsible for energy efficiency.
  • Information campaigns are putting the topic of energy efficiency on the agenda and motivating the public to take part in the project.
An old, prefabricated concrete residential building in need of renovation. Copyright: GIZ Mongolia

Last update: September 2022