The $31.6m loan is provided together with Triodos Investment Management and FMO Dutch Development Bank.

It will support the construction and operation of the bank’s first solar project in Mongolia.

The EBRD was the original seed investor in the first renewable energy project in the country and financed a total of three wind farms. These contributed to the creation of a renewable energy market, the bank said.

The current power and heat generation in Mongolia depends on highly polluting coal-fired combined heat and power plants.

The financing consists of an EBRD loan of $10.5m, while Triodos Investment Management and FMO Dutch Development Bank will also provide $10.5m each.

The project is in line with the bank’s Green Economy Transition approach, in which it aims to dedicate 40% of its annual investments to climate finance by 2020.