Linking herders to carbon markets in Mongolia

Project completed

It is an innovative high-risk / high-benefit applied research project. A pre-feasibility study concluded that a carbon sequestration finance project in Mongolia with an initial investment of the Swiss Agency for Development and Cooperation of 800,000 CHF could leverage private sector investment of US$14.6 million over a 20 year period. The project will explore incentive and sanctions mechanisms and promote policies that encourage more sustainable management of pastures.In order to capitalize on Mongolia’s potential in carbon sequestration, it is required to thoroughly investigate several areas of missing knowledge and key assumptions in this first project phase of two years. At present there are no approved methodologies for accounting of emission reductions from improvements in grassland management that are suitable to the Mongolian context, and practical ways to link herders to the carbon market have yet to be demonstrated. The objectives are to reverse grassland degradation, improve rural incomes and reduce herders’ vulnerability to climate variability and risk through supporting adoption of sustainable grassland and livestock management practices and product marketing by Mongolian herders.

Country/region Topic Period Budget
Mongolia
Agriculture & food security
Climate change and environment
Agriculture value-chain development (til 2016)
Biosphere protection
01.01.2011 - 31.12.2013
CHF 900'000
Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Other International Organization
Swiss Academic and Research Institution
  • Other OI
  • Swiss Universities or FHS


Budget Current phase Swiss budget CHF   900'000 Swiss disbursement to date CHF   895'942
Project phases

Phase 1 01.01.2011 - 31.12.2013   (Completed)