The Mongolian Cabinet has backed the idea of establishing an enterprise to produce processed fuel in an effort to reduce air pollution in Ulaanbaatar.

The Cabinet has imposed a ban on the burning of low-grade coal for domestic use in Ulaanbaatar beginning in April 2019 to curb air pollution. MPs hopes that replacing low-grade coal with processed fuel will sharply reduce air pollution. The new enterprise will be a capacity of producing 90,000 tons of improved fuel per year.

Air pollution is the most pressing issue in Ulaanbaatar where over half of the city’s population live in the ger districts. Named after the traditional Mongolian dwelling, the ger, or yurts, the ger districts are sprawling shanty towns located mostly on the hills to the north of the capital; they lack infrastructure and most of the inhabitants live below the poverty line. They have to rely on burning raw coal and other flammable materials such as plastics, old tires to stay warm and cook meals during the six-month-long winter season.

It is estimated that 80 percent of air pollution in Ulaanbaatar is caused by the ger stoves.