Sustainable textile production and ecolabelling in Mongolia (STEP ECOLAB MONGOLIA)


This project aims at establishing the conditions for sustainable textile production and consumption in Mongolia to emerge, with a focus of wool and cashmere subsector by leveraging the key drivers of Sustainable Production and Consumption.


Total cost: EUR 2.320.755

EU contracted amount: EUR 1.867.330

Duration: March 2018- February 2022

Implementing organization: AVSF Mongolia

Benefitting zone: Asia and Europe

Target area

  • Ulaanbaatar related to processing industries
  • Three provinces: Bayankhongor, Gobi-Altai, Arkhangai for the upstream support related to cashmere, yak and camel fibers

STORY:  Erdenetuya Ch: We turned yak wool into a valuable raw material

Ms Erdenetuya, the leader of Khorgiin Misheel cooperative in Tariat soum, Arkhangai expressed her gratitude to the project for helping their cooperative members to learn methods of properly and efficiently combing yak wool. Before she joined the project, her family lived on selling dairy, leather seasonally and did not use the yak wool for profit. After joining the project activities, she learnt to comb yak wool, pack and sell it for profit. She and her cooperative herders are happy that yak wool is becoming as valuable as cashmere.


STeP EcoLab with specifically strive to leverage the key drivers of sustainable consumption and production in Mongolia by (i) consolidating sustainable and certified raw material sourcing options meeting markets expectations (ii) developing a conducive environment for textile processing SMEs to switch to sustainable production practices and (iii) raising customers’ and consumers’ awareness of Mongolian sustainable textile related initiatives.

Expected results

Sustainable and quality raw fibers sourcing options are consolidated and replicated, allowing improved products for the wool and cashmere processing industry, as well as better income for herder households

Mongolian wool and cashmere processing SMEs have a better understanding and management capacity of their environmental and social (E&S) impacts, and commit to improve their practices

Mongolian wool and cashmere processing SMEs are linked to existing green finance initiatives and pilot projects aiming at improving their E&S impacts are funded

European textile companies, brands and European and Mongolian final consumers’ awareness about Mongolian sustainable textile initiatives is raised and sustainable textile products are sold