Carbon-Linked Loans Demo: SME Rooftop Solar SME Boiler Replacement

Deal terms

Carbon priceiThe price the programme contracts for credits, USD per tCO2e. The lever this room is here to test.
$ / tCO₂e
$0$60
Carbon credit usageiCarbon toward repayment: annual credit revenue joins the cashflow that services the loan. Carbon toward down payment: the 15 year credit stream is sold upfront at its discounted present value and reduces the loan. One position at a time, never both.
Interest rateiAnnual rate on the loan. Default 16.2%: published Mongolian market green business lending, August 2026.
% / yr
4%24%
Loan tenoriLoan term in months. Default 60. Tenor is the strongest lever on whether a project pays for itself: the same loan spread over more months needs less cashflow each year.
months
12180
Collateral requirementiThe collateral the bank requires as a share of the loan. The security package must reach this line. Mongolian SME lending practice: 200%.
% of loan
100%300%
Equipment advance rateiShare of the project cost the bank counts as collateral value for the financed equipment, applied to the full installed cost. Bank practice: 70%. The financed equipment is the core of the package.
% of cost
40%90%
Down paymentiThe owner's contribution paid upfront as a share of project cost; the loan covers the rest. Under "Carbon toward down payment" the carbon payment adds to it.
% of cost
10%60%

The book

Sorted by the carbon price that brings each deal in, lowest first. Click a tile to pin it on the right.
Inputs & Assumptions
AssumptionValueSource
Exchange rate₮3,600 / USD (adjustable 3,000 to 4,200)Fixed demonstration assumption
Value of solar output305.8 MNT/kWh (day band, incl. VAT)Published ERC day-band tariff including VAT. Solar output is valued as avoided daytime grid purchase, at the day band only, and assumes generation is consumed on site.
Installed cost, solar$1,100/kW (<100 kW) · $925/kW (≥100 kW), ±10%Regional benchmark; weakest number in the set, local installer quote requested
Specific yield1,450 kWh/kWp flat-mounted · 1,550 to 1,690 tilted (30% of roofs)PVGIS, Ulaanbaatar
Down payment30% of project cost, the owner's contribution paid upfront; the loan covers the restMarket practice. The 30% down payment and the 70% equipment advance rate are the same constraint, applied once.
Collateral requirement≥ 200% of loanMongolian SME lending practice
Equipment advance rate70% of project costBank collateral practice; the model applies the rate to the full installed cost
Grid emission factor0.68 tCO₂e/MWhJCM Mongolia MN_AM003 v3.0
Boiler capacitiesCatalogue ratings, 0.1 to 4.2 MWthDrawn from the JICA/DAAEP PCR boiler fleet (233 named boilers, Jul 2024); steam ratings converted at 0.7 MWth per t/h
Coal intensity409 / 550 / 714 t per MW per year (triangular)JICA fleet data
Efficiency gain25 / 30 / 40% (triangular)JCM MN_AM002 validated 25.4%
Installed cost, boiler$346 per tonne of annual coal saved at the reference boiler, ±10%, scale economies appliedEBRD MonSEFF anchor (USD 251/t, 2016, escalated); single anchor, inferred
Fuel value of coal saved₮180,000/t (adjustable 75,000 to 220,000)Ulaanbaatar procurement floor, a conservative floor rather than an invoice price; aimag values sit lower
Boiler coal emission factor1.82 tCO₂e per tonne of coalIPCC 2006 default, sub-bituminous coal
Share of credits monetized80%CCE programme assumption
Crediting period15 years, first credits 2027, first cash 2028Demo convention: install this year, credits from next year, cash the year after
Other collateralIllustrative distributions (†)No published Mongolian firm-level data exists; labelled † wherever used. Whether a deal pays for itself does not depend on it.
Loan books2 × 200 synthetic applications, fixed seedsCCE synthetic books, reproducible; not client data