Financial partners: SWITCH-Asia II programme from the European Union
Mongolian textile sector represents a significant share of the country’s GDP and employment, but it is vulnerable to a set of issues related to its inadequate control of raw material sourcing, the relative inefficiency of its production facilities, and its limited access to export markets.
The transition to a market economy has increased the vulnerability of Mongolian nomadic herders. The steep increase of number of livestock, a consequence of the sudden privatization, has led to severe environmental issues, notably pastureland degradation and desertification.
The CO2 and water intensity of the Mongolian textile industry are one of the highest in Asia, and wastewater management is also poor. In a context where Ulaanbaatar, where most processors are located, is already suffering energy shortages and may experience severe water shortages no later than 2025, the industry is bound towards rapid transformation. Mongolian MSMEs have a will to adopt better Environmental and Social practices but lack of awareness of the issues and capacities to address them.
- 30 herders’ organizations & 5 000 herders’ households
- 80 textile processors & 3 business intermediaries
- Students of Mongolian University of Science & Technology
- 1 500 000 Mongolian consumers
The project aims at establishing the conditions for sustainable livestock & textile sectors development in Mongolia, by leveraging key drivers for its development:
- Establishment of a multi-stakeholders’ coordination platform to support harmonization of sustainability framework for livestock sector, and enhance dissemination of best herding and rangeland management practices.
- Assessment of main E&S impacts of textile processors MSMEs, development of a Voluntary Code of Practices (VCP) as first step forward globally recognized standard and technical assistance for its implementation.
- Support to development of a conducive environment for textile processing MSMEs to switch to sustainable practices: access to green finance, support to policy dialogue & improved regulatory framework.
- Promoting and increasing visibility of Mongolian sustainable fibers on national & global markets, through ecolabels for better valuation and sales.
- 5 000 herders’ households engaged into traceable and certified sustainable certification scheme, rewarded by a premium contributing to 20% increase of their income.
- 30 MSMEs commit to the VCP, engage into sustainable Wool & Cashmere supply chain, decrease energy & water consumption by 5%
- Affordable and concessional financial products are developed and made accessible to herders’ organizations and textile MSMEs.
- 4 key policy documents for sustainable livestock & textile sectors are have been approved and enforced, including rangeland management & monitoring, and a law on animal number taxation.
- Awareness of global textile players is raised and export of sustainable fibers, fabrics and garments increased by 20%
® Julie Delzescaux