WASHINGTON, D.C., April 22, 2021 – The Millennium Challenge Corporation (MCC) today announced its ambitious goals to expand and deepen the agency’s investments in climate-smart development and sustainable infrastructure, proudly joining the Biden-Harris Administration and agencies across the U.S. Government in the fight against climate change.
As part of Earth Day 2021 and the White House’s virtual Leaders Summit on Climate, MCC’s Commitment on Climate outlines how the agency will work with a network of partners to help countries enhance climate resiliency, adopt adaptation measures, reduce emissions, preserve natural resources, and promote low carbon economic development that transitions away from fossil fuels.
“Climate change is one of the defining challenges of our time, and we have to match this urgent need with a comprehensive and concrete set of actions to jointly achieve our mission,” said MCC Acting Chief Executive Officer Mahmoud Bah. “We are deepening our commitment to address climate change challenges across our investment portfolio and business operations. In the next five years, we will commit more than 50 percent of our programing funds to climate-related investments as we work with partner countries to build infrastructure that enhance their resilience to future crises, reduce emissions, and stimulate growth.”
MCC has been a leader on climate-smart development and sustainable infrastructure among U.S. Government foreign assistance agencies since its founding in 2004. In the past five years alone, MCC has invested $1.5 billion—representing 38 percent of its program funds—towards programs in critical sectors like energy, water, transportation, and agriculture that foster adaptation, mitigation, and resilience to climate change. Additionally, the agency expects to invest more than half a billion dollars in climate-smart programs for 2021.
Together, with our partner countries and organizations around the world, MCC investments are supporting those who are most affected by the negative impacts of climate change. In addition to providing grant financing, MCC also works hand in hand with partner country governments to advance climate-friendly policy and institutional reforms, as well as define, strengthen, and implement their Nationally Determined Contributions (NDCs).
“MCC and the Government of Mongolia are partners on the front lines of the climate-change battlefield,” noted Chief Executive Officer of Millennium Challenge Account-Mongolia, E. Sodontogos. “Extreme weather patterns combined with rapid urbanization and insufficient water infrastructure have strained water resources to concerning levels, for soon the city’s demand for water is projected to exceed supply in Ulaanbaatar. The MCC – Mongolia partnership is designed to improve the sustainability and management of Mongolia’s natural resources and strengthen the ability of the Mongolian people to withstand the devastating effects of climate change.”
MCC provides large grants to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights, as evaluated by MCC’s scorecard. MCC takes a business-like approach, with bedrock commitments to data, accountability, and evidence-based decision making.