XacBank proudly becomes an Accredited Entity of the Green Climate Fund (GCF)
The United Nations’ Green Climate Fund (GCF) board meeting was held at its headquarters in Songdo, South Korea on October 14th, 2016. During its fourteenth board meeting, the GCF reached a new milestone with the approval of USD 745 million in funding for projects to help developing nations tackle climate change. In addition to approving these funds, the GCF also added eight new Accredited Entities, including XacBank, thereby making it the first private entity from a developing country to receive accreditation.
The Fund will promote the paradigm shift towards low-emission and climate-resilient development pathways. The GCF will do so by providing support to developing countries to mitigate their greenhouse gas emissions and to adapt to the impacts of climate change through its Accredited Entities. XacBank is not only the first private commercial bank to become accredited in Mongolia, but also worldwide.
With the funding, the Bank has access to preparatory grant funding for projects and programs. XacBank will also be able to give long-term loans with low interest rates to projects organized by the Mongolian government, public and private organizations, as well as provide projects access to a guarantee fund.
On this special occasion, XacBank CEO Mr. Bold commented, “We work by embracing our triple bottom line mission: People, Planet, Profit. In 2009, we created the very first Eco Banking Department in Mongolia’s banking sector, thus reducing greenhouse gas emissions and energy usage in cooperation with Micro Energy Credit, and further cooperation with various international organizations such as: FMO, Deutsche Bank, EBRD, IFC, and Global Climate Partnership Fund.
Accreditation from the GCF further legitimizes the core values and mission statement we stand by and demonstrates the contributions we have made towards bettering the environment. In addition to our commitment to the environment, the accreditation shows our integration of global standards in all areas of operations, governance, and social responsibility. Moreover, it is an entrustment given to us for making tangible changes in our region towards slowing down climate change.”
Individuals, governments, private and public entities, NGOs of all levels across the world have joined together in combatting climate change. Mongolia joined the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol in 1993 and 1999, respectively. In the past 70 years, our country’s average temperature has increased by 2.1 degrees Celsius. Due to climate change, the frequency of natural disaster increased by 1.5 times and the number of fallen livestock has reached 24.5 million, causing billions of MNT worth of damage.
The crisis of climate change is a global responsibility. As such, XacBank sees it as our duty to make a real impact through climate finance. The Bank strives to create a greener, healthier environment for generations to come and will always continue to do so.
The Green Climate Fund (GCF) is a fund within the framework of the UN Framework Convention on Climate Change (UNFCCC) founded as a mechanism to assist developing countries in adaptation and mitigation practices to counter climate change. GCF was set up by 194 governments party to the UNFCCC, was given the mandate to help keep the planet’s atmospheric temperature rise below 2 degrees Celsius. The Fund received pledges of approximately USD 10 billion equivalent in 2014, which has been exceeded.