The Ikh-Uul region, a sub-province of Zavkhan in Mongolia, is located within the Khangai mountain range. This area includes the Tarvagatai Mountains National Park, known for its forest-steppe ecosystem and extreme continental, semi-arid climate. The forest reserve, dominated by larch and Siberian pine trees, is home to rare wildlife and plays a critical role in preserving permafrost, essential for regional hydrology. The local community relies on the forest for firewood, timber, pine nuts, wild berries, and edible mushrooms, all vital to their livelihoods.
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Photo: Biodiversity in Mongolia
Ms. Odontuya Ononpuntsag, the governor of the Ikh-Uul region, leads efforts to protect this valuable environment. With a background in social sciences and management, Ms. Odontuya earned her community the prestigious title of "Best Administrative Unit" in Mongolia in 2024, establishing herself as a respected and visionary leader.
Ms.Odontuya Ononpuntsag, the Governor Ikh-Uul soum (region)
Local budget for natural resource management
To ensure the effective protection and sustainable management of this ecosystem, an adequate budget and financing are essential to carry out the necessary work. Fortunately, Mongolia has a law on Natural Resource Use Fees, which local administrations are empowered to utilize.
Ikh-Uul soum's primary natural resource is its forest reserve. The soum, with support from UNDP's ENSURE project, funded by the Global Environment Facility, developed a sustainable forest management plan for 2021-2028. This plan includes sustainable management actions, business and finance strategies, and outlines state and local budget-funded administration, coordination, and monitoring activities.
Forest resource use fees are collected as tax revenue for the soum's budget, with local governments reallocating these funds for conservation and restoration to maintain ecosystem integrity. The local governor is responsible for budget proposals, their approval by the local parliament, and overseeing budget execution.
Photo: UNDP Mongolia, the view of Tarvagatai mountainous area
Operating in Mongolia since 2019, the UNDP Biodiversity Finance Initiative (BIOFIN), funded by the German government, plays a critical role in enforcing Mongolia's Law on Natural Resource Use Fees, an important mechanism that allows local administrations to collect taxes from the use of natural resources and invest them in environmental protection.
BIOFIN’s efforts included conducting a gap analysis of the existing legal framework, which led to the government adopting a supplementary act to the Law on Natural Resource Use in 2022. Since then, BIOFIN has focused on raising awareness nationwide, organizing consultation meetings, and conducting training workshops to improve the effectiveness and impact of local budgets on biodiversity. The Ikh-Uul region was one of the first to benefit from these activities.
“BIOFIN is improving the methodology of local budget planning. Result-oriented implementation with clearly defined activities can increase local budget efficiency and contribute to national development targets. It's crucial to prioritize local administration problems and clarify responsible personnel. As the financial gap begins to close, new solutions in environmental protection will emerge” says Odontuya.
Photo: The governor, Ms.Odontuya Ononpuntsa, and the Head of the local Parliament
In 2021, a good yield of pine nuts brought the region around $70,000 in tax revenue. Over 70 percent of this revenue was reinvested in reforestation, pest control, forest thinning, and greening the settlement area to combat the severe outbreaks of forest pests that have plagued the region.
The impressive effort was well appreciated by many among them is Ms. Uranchimeg Tserendorj, Director General of the Department of Natural Resource Policy and Planning at the Ministry of Environment and Climate Change.
She says, “Forest resource use fees are collected into local budgets to ensure ecosystem integration and restore natural resources. Since the fiscal decentralization reforms through the 2011 Integrated Budget Law, local government expenditure responsibilities have significantly increased. Zavkhan Province, known for its forest reserves, is a key focus area. The Ministry highly appreciates Ikh-Uul soum for its exemplary fulfillment of these duties.”
Photo: Pest control measure at the hotspot
Within the reforestation initiative, three polygons totaling 12 hectares were selected to restore the riparian forest, with over ten thousand saplings planted beneath the old trees.