ULAANBAATAR, Mongolia — On August 24, on the sidelines of the opening ceremony of the high-level ministerial segment at the 17th session of the Conference of the Parties (COP17) to the UN Convention to Combat Desertification, Gelsomina Vigliotti, a Vice-President of the European Investment Bank (EIB), spoke to reporters regarding a major financial agreement between the European Union, EIB, and the Government of Mongolia.

The announcement centers on a signed Letter of Intent paving the way for a €100 million framework loan dedicated to boosting and sustaining Mongolia’s forestry sector.

Aligning Financial Commitments with COP17 Goals

The €100 million financing program aims to directly address land degradation, promote sustainable forestry practices, and unlock economic opportunities within green supply chains.

On the synergy between the loan and COP17 objectives: "We are particularly happy and glad to sign this Letter of Intent on the occasion of COP17, because the objectives of this Letter of Intent and the following loan are very close to the objectives of COP17."

Balancing Conservation with Economic Opportunity

Highlighting the dual purpose of the initiative, the briefing emphasized that ecological preservation must go hand-in-hand with sustainable business models and local livelihood improvements.

On integrating nature preservation with business growth: "As a financial institution, what we want to do is, first of all, to preserve nature, to safeguard landscape, but at the same time, while pursuing these objectives, also develop business opportunities."

On the wider socioeconomic risks of land degradation: "Land degradation is something which can affect economic development, can affect the possibility to invest, to grow, for food security—for many of the livelihoods aspects that are relevant."

Supporting Government Vision and Legacy

The framework loan aligns directly with Mongolia's long-term development policy, Vision 2050, by fostering economic value chains tied to forestry while honoring local heritage and social customs.

On respecting local traditions while building economic value chains: "What we want to do is to support the government in taking care of the forestry sector, and also by developing there some economic value chains which are related to the forestry sector... while respecting the culture and social habits of the population.

On leaving a lasting environmental and economic legacy: "Supporting nature, making business and economic development out of it while respecting it, I think it's what we have to leave as a legacy, also from this COP17 in Ulaanbaatar."

At the signing ceremony, the Ambassador of the European Union to Mongolia Ina Marciulionyte, emphasized the shared vision between the European Union and Mongolia in advancing sustainable forest management, green economic growth, and ecosystem restoration.

A Shared Vision for Forests and Sustainable Growth

Ambassador Marciulionyte highlighted the profound symbolic and economic value that forests hold for both Mongolians and Europeans, calling the partnership a cornerstone for a brighter, sustainable future.  

"Mongolians and Europeans share the same vision. Forest symbolizes peace and harmony, and it means also resources and economic growth. Therefore, through the EU-Mongolia Forest Partnership, our collaboration will bring fruits and a bright future for the forests of Mongolia." she said. The Ambassador reaffirmed the commitment of both the European Union and the European Investment Bank to back Mongolia’s green transition, specifically supporting national climate benchmarks such as the "Billion Trees" initiative. She expressed optimism that a new legal framework governing forestry would be adopted by the Mongolian Parliament during its autumn session.