Making buildings more energy efficient

Project description

Title: Energy Efficient Building Refurbishment in Mongolia (EEP)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Mongolia
Lead executing agency: Ministry of Energy, Municipality of Ulaanbaatar (MUB)
Overall term: 2019 to 2021



Mongolia is characterised by extreme climatic conditions with short summers, and long, extremely cold winters. Due to outdated coal-based heating facilities and poor building insulation, the capital Ulaanbaatar is covered in smog during the cold season. Additionally, the low room temperatures of public buildings and private households are an acute health hazard during the harsh winters. 

Investments in insulation of public and private buildings are crucial to a) reduce energy loss b) reduce CO2 and fine particle emissions c) improve the living quality of residents. 

However, there are ways to improve the Public Investment Management (PIM) of the Municipality of Ulaanbaatar (MUB) for example, in terms of transparency, public participation in investment planning, implementation and monitoring processes.

A Local Energy Efficiency Action Plan (LEEAP) that coordinates energy efficiency efforts is also missing. In the private sector, a lack of technical expertise, for example in terms of planning and construction and refurbishment of energy-efficient buildings is further hindering an improvement of energy efficiency in the building sector. 


Energy efficiency in the building sector in Ulaanbaatar has been improved and a contribution to the economically and ecologically sustainable use of energy in Mongolia was achieved.



Promoting the introduction of Public Investment Management that is based on transparency, effectiveness and gender-sensitivity is the heart of a co-financing and cooperation agreement with the Swiss Agency for Development and Cooperation (SDC). The technical and managerial staff of the municipality of Ulaanbaatar will apply their newly learned skills in the context of energy efficient building refurbishments. In two of the poorest neighbourhoods of Ulaanbaatar—Songinokhairkhan & Bayanzurkh—a total of 20 public buildings such as schools and kindergartens will be renovated and equipped with energy efficient technologies. Citizens, especially parents and teachers, are trained to participate in public procurement and monitoring of public investment projects.  

Furthermore, the project supports the development of a Local Energy Efficiency Action Plan in the city of Ulaanbaatar and improves the capacities of the private construction and banking sector on the topic of energy efficiency. To offer an alternative to the energy inefficient residential houses in informal settlements in Ulaanbaatar known as Ger areas, the project develops and builds 10 cost and energy efficient buildings.  


Output I
Transparent, effective and gender-sensitive public investment management in Ulaanbaatar is introduced through the case of energy efficiency in buildings.

Examples of Activities:

  • Development of guidelines for transparent, effective and gender sensitive processes of PIM for upgrading buildings in the education sector
  • Consultancy to improve the construction processes in regard of the integration of energy efficiency
  • Establishing of a policy dialogue for the introduction and dissemination of the guidelines and gender responsive budgeting

Output II
Local Energy Efficiency Action Plan for the construction sector is adopted. 

Examples of Activities:

  • Strengthen the capacity of key actors, for example, the Energy Regulatory Commission, the Ministry of Construction and Urban Development and the Municipality for the development of a LEEAP for the construction sector of the city
  • Process and organisational consulting for the establishment of a LEEAP working group
  • A study on financing options

Output III
Private sector’s capacity for energy efficiency is improved. 

Examples of Activities:

  • Trainings for construction sector actors (e.g. architects, technicians and workers, companies for construction and for production of construction material)
  • Consultancy for the financial sector on energy audits, monitoring and the development of criteria for energy-efficient houses
  • Training for banking professionals in the assessment of energy efficiency criteria in loan applications

Output IV
Energy efficiency technologies are introduced in Ger neighbourhoods. 

Examples of Activities:

  • Technical energy efficient retrofitting of 20 public buildings by introducing meters and development of digitally based measurement concepts
  • Participatory planning and construction of 10 energy-efficient homes in Ger areas 
  • Awareness raising and experience sharing regarding energy efficiency in prefabricated buildings