MONGOLIA'S EASTERN-STEPPE GRASSLANDS FACE CHALLENGES

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000360

SENSITIVE

SIPDIS

STATE FOR EAP/CM AND EB/IEC
STATE PASS USTR, EXIM, OPIC, AND EPA
MILLENNIUM CHALLENGE CORP WASHDC FOR F. REID
TREASURY PASS USEDS TO IMF, WORLD BANK
MANILA AND LONDON FOR USEDS TO ADB, EBRD

E.O.12958: N/A
TAGS: SENV EMIN ENRG PGOV ECON EFIN EPET MG
SUBJECT: MONGOLIA'S EASTERN-STEPPE GRASSLANDS FACE CHALLENGES

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION


1. (SBU) SUMMARY: On a visit to Mongolia's eastern steppe grasslands
from July 18-21, the Ambassador met with conservationists,
government officials and local residents, and heard concerns about
the threats to the local habitat and its inhabitants. Temperate
grasslands constitute a globally important habitat, and Mongolia's
grassland is the world's largest remaining intact habitat of this
kind, experts say. However, Mongolia's grassland has shrunk in
recent years, due in part to over-grazing and poor pastoral
management. The eastern steppe is still home to large herds of
Mongolian gazelle, but poaching, desertification and human
encroachment are causing their numbers to decline. The destruction
of the grasslands has far-reaching consequences, including climate
change, species extinction and a strain on the local economy.
Earlier this year, The Nature Conservancy (TNC) launched a new
conservation strategy in Mongolia that combines eco-tourism and
carbon trading with sustainable mineral development and engagement
with local residents. END SUMMARY.


2. (SBU) Ambassador Minton and Econ/Pol Intern visited Mongolia's
grassland in the eastern province of Dornod from July 18 to 21. The
Ambassador met with local residents, government officials and
conservationists who are active on the eastern steppe.
Representatives from TNC; the Wildlife Conservation Society (WCS);
and a local NGO, the Eastern Mongolia Community Conservation
Association, provided briefings and led an eco-tour in the remote
grasslands of the Toson Hustai Nature Reserve. Also present were
the Director of Dornod province's environmental protection agency
and a ranger from the Nature Reserve.

THE IMPORTANCE OF TEMPERATE GRASSLANDS
--------------


3. (SBU) According to experts, worldwide, among the most converted,
least conserved major habitats are temperate grassland. Mongolia is
home to the largest remaining area of intact temperate grasslands in
the world. Temperate grasslands are under-represented in Mongolia's
protected area network, but are vitally important for managing
climate change. They are also important to local economies, not to
mention the survival of many rare species, including the Mongolian
gazelle. (Note: Mongolia holds the last migratory herd remaining in
Eurasia. End Note.) A successful conservation effort in Mongolia
could more than double the area of temperate grasslands in Eurasia
and serve as a roadmap for effective conservation in other
countries, including Russia and China.

LOCAL HERDER VOICES CONCERN
--------------


4. (SBU) The Ambassador visited a local herder's ger (a round, felt
shelter used by nomadic herdsmen; yurt in Russian). The herder said
he believes strongly in conservation but sees the lack of law
enforcement as the area's biggest conservation obstacle. He said
one ranger patrolling millions of acres is woefully inadequate,
adding that he hoped the GOM would do more.

GAZELLE NUMBERS DECLINING
--------------


5. (SBU) The Ambassador's party traveled approximately 100 km into
remote areas of the eastern steppe. In this area, home of the
nomadic Mongolian gazelle, man-made objects such as fences and roads
do not exist, and grass grows four feet high. Thirty years ago, the

ULAANBAATA 00000360 002 OF 002


gazelle population totaled more than 9 million, but the number now
stands at less than 1.5 million. The decline in gazelle numbers is
attributed mainly to poaching, desertification and human
encroachment. The Ambassador's expedition encountered a herd of
about 2,000 Mongolian gazelle, a once common sight but now rarely
seen by anyone other than conservationists.

MANAGING CLIMATE CHANGE
--------------


6. (SBU) In Mongolia, local herders rely on the grasslands for
survival, but poor pastoral management has led to overgrazing, and
large areas are succumbing to desertification. Desertification is a
problem for local herders, as more compete for shrinking grazing
land. The global consequences are just as dire. Because Mongolia's
grasslands store large amounts of carbon dioxide, they mitigate the
effects of climate change. Like rainforests, but to a lesser but
significant extent, temperate grasslands act as the earth's lung.
TNC hopes the global importance of this habitat will strike a chord
with world governments and businesses so that meaningful action will
be taken.

ONE NGO'S APPROACH
--------------


7. (SBU) In early 2008, TNC launched a new country program in
Mongolia, bringing decades of international conservation experience
and in-depth grassland management expertise to the challenges facing
Mongolia's grasslands. TNC's pragmatic approach emphasizes
collaboration, sustainable use of natural resources, and economic
development that is compatible with conservation. The nascent
program has already identified poor pastoral management,
desertification and poaching as the area's biggest threats. The
organization plans to address these issues with partners in
business, government, the NGO community and local herders. The
million-acre Toson Hustai Nature Reserve, located in the heart of
the steppe, is TNC's "anchor site" for learning how to work in
Mongolia.

THE ECONOMICS OF CONSERVATION
--------------


8. (SBU) Chris Pague, the Mongolia TNC Director, says the real
challenge is balancing conservation strategies with human needs.
Eco-tourism is a strategy that has worked in other parts of the
world, but the TNC staff is quick to point out that while
eco-tourism would be part of their strategy, it is no panacea. They
believe carbon trading, engaging local herders and sustainable
mineral development are more practical for Mongolia's eastern
steppe. Because grassland preservation mitigates the effects of
climate change, TNC believes a carbon-trading scheme could be set
up. TNC's staff also understands that mineral exploitation is
inevitable, and actively engages businesses and the GOM on this
issue. TNC hopes that proposed changes to Mongolia's Law on Mineral
Resources will include environmental friendly language, and possibly
include an environmental investment requirement.
MINTON