The International Year of Glaciers’ Preservation in 2025 was a timely reminder that the stability of Mongolia’s economy rests on fragile mountain systems that are melting faster than ever recorded. The loss reverberates across the country’s energy and agricultural systems, two development pillars that draw from the same finite resource: water.

Warming and glacial retreat

Mongolia’s average surface air temperature is already 2.3°C higher than the pre-industrial baseline, about 1.3°C above the global average. The most fossil fuel-intensive climate scenario (SSP5) indicates nearly 8°C of warming by the end of the century with the steepest increases expected in the northern and western provinces; home to the country’s glaciers.

These glaciers contribute more than 70 per cent of Mongolia’s freshwater, sustaining agriculture, hydropower, and domestic use. Since 1940, glacier volume has declined by about 28 per cent, and total glacier area has decreased by 35 per cent between 1990 and 2016, leaving only 627 glaciers covering 334 km². Between the 1980s and 2010, Mongolia lost 63 lakes larger than 0.1 km² and about 683 rivers, many in the foothills of the Altai ranges with the highest concentration of glaciers. Groundwater storage on the Mongolian Plateau is also decreasing at nearly 3 mm per year, linked partly to reduced glacial input. 

Analysis using downscaled IPCC climate projections available on ESCAP’s Risk and Resilience Portal suggests that this trend is likely to continue in the coming decades and by 2,100 many western Altai glaciers may disappear entirely (Figures 1A and 1B).

Figure 1(A and B) Change in glacier area during 1990-2010 and (B) projected change in glacier mass balance (2021-2100) in Mongolia under climate change scenarios (Source: Kemp et al (2022). Mongolia's cryosphere. Geomorphology)

Figure 2 Change in glacial mass balance in the Altai Mountain region under existing and climate change scenarios

Water, energy and agriculture: A tightening nexus

Mongolia’s semi-arid climate has always made water a strategic asset for development. 

Agriculture remains the largest water consumer, accounting for roughly two-thirds of total use. Since 2008, more than 1,000 hectares of irrigated land have been added annually, driven by food and livestock-security goals. With prolonged dry conditions (Figure 3), farmers in western and northern provinces report increasing reliance on shallow wells and groundwater pumping, while pastures dry earlier in the season. 

These demands coincide with a growing push to expand hydropower for domestic energy security.

Figure 3 Exposure of livestock (sheep and goats) to soil moisture drought under climate change conditions

Hydropower in transition

Hydropower accounts for nearly one-fifth of Mongolia’s electricity generation, but its viability depends on stable water flow. In the western region, hydropower provides 93 per cent of locally produced energy. 

The Durgun Hydropower Plant (HPP) in Khovd Province, for example, provides over 28 per cent of regional power but operates in one of the driest parts of the country. With glacier retreat and declining summer precipitation, inflows have become less predictable. ESCAP drought-exposure modelling shows that the western provinces already face chronic low-to-medium drought intensity, with worsening conditions under future scenarios (Figure 3).

Figure 4 Exposure of hydropower plants to drought (Standardized streamflow index) under climate change scenarios in the western region (Source: ESCAP Authors)

When summer river levels fall, reservoir storage drops, hydropower generation declines and diesel generation must fill the gap raising both costs and emissions. Meanwhile, agricultural water withdrawals upstream further constrain available flows for power generation. The result is a feedback loop: limited water cuts hydropower output, leading to higher reliance on fossil energy, which in turn intensifies warming and glacier melt.

Competing pressures in a semi-arid economy

In the Western Energy Systems, consisting of provinces closest to the glaciers, rising demand compounds these stresses. Between 2018 and 2019, electricity consumption in the region rose 5.6 per cent, driven by population growth and mining expansion. 

In summer months, when electricity demand peaks for irrigation pumping and cooling, river discharge often reaches its lowest levels. This mismatch between energy demand and hydrological supply poses a systemic risk. Climate projections show that long-term discharge in key basins will decline, reducing the economic lifespan of existing hydropower assets.

Addressing this challenge requires coordinated planning across water, energy, and agriculture. Three areas stand out:

1. Water-efficient agriculture. Expanding drip irrigation, adopting drought-resilient crop varieties, and improving on-farm water storage can reduce demand during low-flow periods. Aligning irrigation schedules with projected runoff cycles would ease pressure on hydropower reservoirs.
2. Diversified renewables. Mongolia’s wind and solar resources can complement hydropower seasonality. Integrating hybrid systems with storage or pumped hydro can maintain grid stability during drought years.
3. Data-driven basin management. Glacier monitoring and real-time hydrological data should inform both irrigation allocation and hydropower operation. This shared evidence-based approach can prevent conflicts between sectors during dry spells.

Mongolia already emphasizes renewable diversification. By embedding glacier and river monitoring within sector planning, the policy can better anticipate seasonal stress rather than react to it.

From vulnerability to transformative adaptation

Glacier retreat, once viewed as an environmental concern, is now an economic one. For Mongolia, without adaptation and foresight, the combined stress of reduced meltwater, erratic rainfall, and rising temperatures could destabilize both food production and energy security.

Protecting these frozen reserves and managing the water they release means securing not only the country’s rivers but its power and food systems as well.

Resilience begins where risk meets foresight.