Mongolian winters are notoriously cold. To keep warm many people living in Ulaanbaatar’s large informal ger districts turn to wood and coal to heat their homes, blanketing the city in a thick smog, making it one of the most polluted cities in the world.
In May 2017, a team from the Climate and Clean Air Coalition and the Frankfurt School of Finance and Management (the Frankfurt School), travelled to Ulaanbaatar to meet with the Mongolian commercial bank, XacBank, to investigate setting up cheap household loans for ger residents to purchase cleaner household heating appliances to replace the inefficient traditional heat-stoves they currently use.
Working with ger residents, local and national government, academics, engineers, and technology suppliers, the team assessed the available alternatives and identified appropriate options for ger households.
The subsequent feasibility study showed a viable market for energy efficient heating appliances and helped XacBank design an Energy Efficient Consumption Loan Programme, a financial product to help poor families purchase clean heating options, reduce air pollution, and provide environmental and health benefits.