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Asian Development Bank

100 Climate Actions from Cities in Asia and the Pacific


A housing project in Mongolia’s capital aims to provide low-carbon homes for residents of the city’s peri-urban areas and hopesto inspire future development.

This large-scale demonstration initiative will focus on the development of 10,000 affordable housing units equipped with rooftop solar panels, better insulation, and improved connectivity to the central energy grid, water supply, and sanitation services. The housing will be contained within a new, resilient eco-district.


The Green Affordable Housing Project, running until 2027, focuses on improving the lives of inhabitants who currently live in Ulaanbaatar’s ger and peri-urban areas. The traditional yurt settlements are vulnerable to climate change and are hotspots for greenhouse emissions and air pollution in the city due to the use of inefficient coal stoves.

Insulation and the use of a central grid supply will reduce demand for heating while also increasing energy efficiency. Photovoltaic solar panels will supply zero-emission electricity, and pollution will be further reduced with the installation of modern toilet facilities. The new housing will also feature smart monitoring systems, grey water recycling, and rainwater
harvesting, and long-term debt financing will be made available to incentivize participation in the low-carbon housing market and provision of affordable green mortgages.

The project has a budget of $570 million, and is partly financed by $175 million in loans and $53 million in grants from ADB and the Green Climate Fund.

By moving away from coal-based heating and providing connections to urban infrastructure networks, this project hopes to reduce air and soil pollution (photo by Project Implementation Unit, Municipality of Ulaanbaatar City).

The Challenge

Residents in Ulaanbaatar living in ger areas often lack access to critical public infrastructure and rely on heavily polluting and inefficient coal-based heating.


Health Improved wastewater collection will reduce health risks from pollution and the project will contribute to improving air quality, reducing currently high rates of respiratory illnesses.

Social 35,000 people will obtain affordable housing and public spaces with adequate provision of clean water, waste management facilities, and heating.

Environment The project will reduce air pollution and increase energy efficiency through a shift in heating sources, and improve environmental conditions by reducing pit latrines and wastewater discharge, creating more livable urban areas.