Mongolia is seriously impacted by climate change affecting not only the environment but also inducing immense economic costs, affecting key industries and endangering jobs, wealth, and life of the Mongolian population. Floods destroy infrastructures while dzuds and droughts cause crop and livestock losses. Apart from these direct impacts, further losses result from e.g. impaired production due to destroyed infrastructure and power outages. Climate change will accelerate and amplify, which calls for appropriate, swift adaptation actions to curb from the negative impacts on the economy, environment and the people. In 2019, Mongolia launched its National Adaptation Plan (NAP) aiming at integrating climate change adaptation into existing policies and strategies across the most vulnerable sectors. Raising the awareness about the impacts of climate change on key sectors and finding suitable adaptation options are the starting point. While assessments of costs and benefits for single adaptation projects exist, the economy-wide and intersectoral effects of climate change and adaptation are rarely considered. Environmentally extended economic models such as the e3.mn model in combination with scenario analyses provide insights into the economy-wide effects of climate change and adaptation policies, especially with regards to employment, GDP, and GHG emissions and thus support policy makers to identify those adaptation options that are highly effective and are beneficial for the economy, the people and the environment (win-win options).

This report – now updated in 2025 – presents the economy-wide impacts of climate change and adaptation conducted for the main climate hazards and for four adaptation measures targeting at agriculture and water management to limit the negative climate change impacts on the Mongolian economy and people.
 

Großmann, A., Hohmann, F. & Dreuw. P. (2025): Economy-Wide Impacts of Climate Change and Adaptation in Mongolia. Assessing the Macroeconomic Impacts of Climate Change and Adaptation in Mongolia with the e3.mn Model – Updated Country Report. Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Bonn, Eschborn.