Realignment of taxes on natural resources use
By improving the enforcement of the Law on Natural Resource Use Fee, and realigning the revenue, it is feasible to increase the funds for environmental protection approximately MNT 15 – 16 billion per annum.
Reintroduction of pasture fee
Reintroduction of pasture fee could mobilize at least MNT 5.6 billion in the local budget fund. If 30% of the revenue is used for pasture management as per the Law on Natural Resource Use Fee, a minimum of MNT 1.7 billion would be available annually.
Environmental Trust Fund based on private sector
Mongolian National Chamber of Commerce and Industry estimates that a total of MNT 93 billion was spent on CSR by 15 private companies in 2015. Although, it was not spent on biodiversity related initiatives, the figure proves that the private sector in Mongolia has the potential to participate as a key partner in establishing the Environmental Trust Fund.
The main purpose of this finance solution is to mobilize resources for a viable business based on the sustainable use of natural resources. For instance, Khustai Nuruu National Park was established to reintroduce the Przewalski’s Horse. By implementing this project, tourism infrastructure was built and currently the environmental protection and biodiversity conservation initiatives are financed by the revenue from the tourism activities.