STeP Ecolab Mongolia II Ensuring Sustainability Along the Cashmere Value Chain and Making it Ready for Circular Economy Desertification is a growing threat in Mongolia, with 77% of the country’s land classified as degraded due to overgrazing, climate change, and unsustainable pasture practices. On the one hand, the globally growing demand for cashmere products contributes to this development. On the other, about one third of the Mongolian population relies on the cashmere industry for their livelihood, especially women and communities in rural areas. The STeP Ecolab Mongolia II project strives to continue supporting the Mongolian wool and cashmere industry on its path toward a sustainable future that allows for an inclusive growth of the Mongolian economy without compromising its unique landscape and Nomadic heritage. It picks up the foundations set by its successful predecessor project, STeP EcoLab I by further developing its achievements and adding new elements such as fair pricing and circular economy aspects. The milestones of STeP Ecolab Mongolia II entail: Further development of the sectoral roadmap together with the industry, policy makers and financial intermediaries Selection and adoption of international certifications together with selected companies Introducing fair pricing principles to the sector and showing their relevance for a sustainable cashmere value chain Co-creating products and business models for circularity in the cashmere industry Supporting the industry on sharpening the sustainability profile towards European consumers The project brings together all key stakeholders of the cashmere value chain in Mongolia, each contributing their unique perspective to ensure inclusive and sustainable outcomes. Herders, represented by the National Federation of Pasture User Groups, provide essential insights into sustainable land use and livestock management. The Mongolian Wool and Cashmere Association contributes expertise in processing and industry standards, international certification organisations support the integration of sustainability and traceability at the end-user level. The Mongolian Sustainable Finance Association strengthens the financial perspective, while the Ministry of Light Industry helps align the project with national policy priorities. This broad-based collaboration ensures that measures are well-informed, widely supported, and effectively implemented. The CSCP will drive this process by contributing with several of its key competencies: Sustainable Value Chains (fair pricing principles, sustainability profiles), Participatory Strategy Development (sectoral roadmap), Co-Creation (circular products and business models) and Design & Communication (circular products and business models). The project is led by AVSF Mongolia and funded by the European Commission under the SWITCH Asia programme.