གནས་ཚུལ།

The Bhutanese | Tenzing Lamsang | January 6, 2024

One of the important features of the Gelephu Mindfulness City project as revealed in the Master Plan vision design of Bjarke Engels and team is the Sunkosh Dam.

The vision design said the final bridge, a hydroelectric dam, will be constructed on the city’s western border with a step-well retaining wall that offers viewpoints, staircases for meditative walks, and a temple. Visitors and pilgrims can ascend and descend along countless individual routes to the visitor center and temple nested on the face of the manmade cliff.

It said the Sunkosh Temple-Dam embodies in architectural form all the foundational elements of Gelephu: the harmonious coexistence of culture and nature, conceived as a hybrid child of Bhutan’s rich past heritage and its prosperous future legacy.

Given that the vision said a dam is coming up the Druk Green Power Corporation (DGPC) has been doing some technical studies and the true potential of the reservoir dam is under 5,000 MW at 4,600 to 4,800 MW.

This is much more than the 2,560 MW project that had earlier been envisioned for the project.

The idea is instead of just doing a 2,560 MW project why not take advantage of the real reservoir potential of the project and build a bigger dam and project in one location.

Given that this is a reservoir project if it is built then it can solve Bhutan’s power woes in winter when generation in the run of the river projects all fall sharply to the point that Bhutan has to import power.

The dam height could be higher than the 220 meters long Hoover dam in USA and the backflow generated from the water would be for around 70 kms all the way to the Wakletar bridge between Wangdue and Tsirang.

However, there will be no displacement of people as there are no settlements, schools or hospitals there.

It would be a multi use project beyond just power generation as it can be used for supplying water and also recreation.

These are early days for the project and it is not yet clear how it will be funded or implemented.

Sunkosh was one of the projects in the 10,000 MW by 2020 but it could not take off after issues of implementation modality and financing issues.

For many years strong attempts were made to get the project done under this model but there was no success and it lay ignored until the Gelephu Mindfulness City project.

During the 116th National Day Address His Majesty The King said that considering our current expertise, we need to enhance the installed capacity of hydropower by expediting the construction of projects such as Kholongchu, Chamkharchu, Dorjilung, Nyera Amari, Wangchu, Bunakha and Sunkosh, for which Detailed Project Reports are ready.

His Majesty said Bhutan’s electricity prices should be among the most competitive in the region so that our hydro resources are not just a source of revenue, but also an enabler of other investments.

The Bhutanese | Tenzing Lamsang | December 23, 2023

His Majesty The King outlined that one of the three priority areas to support the Gelephu project will be the energy sector including solar, wind, geo thermal and hydropower.

Following this, the Druk Green Power Corporation (DGPC) will be updating the DPRs of many of the many hydro projects and then look at raising funds and implementing them.

Kholongchu

The one that can be done the fastest among them is the 600 MW Kholongchu project as it has already built Nu 4.626 billion (bn) worth of initial infrastructure like roads, power facilities, and residential and non-residential structures needed for the project.

The former MoEA Minister Loknath Sharma had announced that the project would start construction by mid 2023 after securing funding from Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC) which are both Public Sector Undertakings of India and fund power projects. However, funds have not yet been secured.

The Managing Director of the DGPC Dasho Chhewang Rinzin said the senior management team of PFC and REC are in Bhutan and detailed discussions are going on with them. He said the Government of India (GoI) is fully supportive in availing money.

Dasho said that the funding should be secured in the next two to three months.

The total project cost is Nu 60 bn of which Nu 4.626 bn is already spent leaving around 56 bn to be raised. The funding of the project will have to be 70 percent debt and 30 percent equity. The loan that will be taken from the PFC and REC will be around 40 bn and DGPC will have to raise around Nu 16 to Nu 17 bn as equity.

This equity will be raised from DGPC’s cash flow, NPPF and local banks.

The deal has not reached closure on financing yet and the most important thing for DGPC will be coming up with equity financing. The PFC and REC will also want securities or collateral which will be the project assets itself. The deal has not yet reached the stage to discuss the loan interest rates.

The interest rates will depend in part on repayment capacity and on that the DGPC has a good track record with the GoI in bilateral projects.

Once the financing is clinched then the MD said the project can go on in full swing and it can be completed in five years by around 2028.

The project started as a joint venture with with Satluj Jal Vidyut Nigam (SJVN) Limited but due to management, financing and implementation differences DGPC regained full ownership by repurchasing SJVN’s shares in early 2023.

Dorjilung

The other next big project is the 1,125 MW Dorjilung project. Here the DGPC MD said they are in the process of updating the DPR which should be done by around March or April 2024.

Once the DPR is done then they will get into discussions on financing and the deadline is to secure all the funding by the end of 2024, after which the project will take around 5 to 6 years to complete.

The government earlier this year had written a formal letter to the World Bank asking them to look for the funding of Dorjilung project through consortium financing.

The WB is already in talks with the European Investment Bank (EIB) and could bring in the Asian Development Bank too.

The last estimated cost of the project was put at Nu 74 bn, but the latest estimate could be USD 1.2 to USD 1.3 billion.

The project was initially proposed as a trilateral project between Bhutan, Bangladesh and India with Bhutan building the project with Bangladesh financing and exporting the power to them via India, but while Bhutan and Bangladesh agreed there was no response from India.

Bunakha, Wangchu and Chamkarchu

An interesting project is the 180 MW Bunakha reservoir project which would be able to store water for winter and also help the downstream projects of 336 MW Chukha, 1,020 MW Tala and 570 or 900 MW Wangchu.

The DPR has already been done but is being updated. The project will have a 180-meter-long dam.

The project was supposed to cost Nu 29 bn in around 2014 but the revised DPR will show a much higher cost now given inflation.

This project was initially listed as a JV to be done with SJVN under the 10,000 MW by 2020 but again funding and other differences led to separate ways.

Back in 2014 because of Bunakha, Chukha would gain an additional Nu 575 mn in revenue a year, Tala would gain Nu 972 mn a year and Wangchu would gain Nu 420 mn (at 2014 Chukha tariff rates).

A related and interesting project is the Wangchu project which will be down stream of Tala. Here the DGPC has two options.

One option is doing it as a run of the river project which is a 570 MW project at around nu 40 bn back in 2014.

However, the other option is to do it as a reservoir project that will store water for the winter months and this would be a 900 MW project.

The DGPC MD said they are now exploring this reservoir option given the changes in the energy market in India and they are also studying the costs and opportunities.

A project for which the DGPC has done the DPR is the 442 MW Nyera-Amari project. The project is on the Nyera Amari river that flow down from Merak-Sakteng,  into Bangtar, Pemathang and Martshala. 

The first stage of the project will be near Trashigang and the second stage in Martshala in Samdrupjongkhar.

The project cost is Nu 34.78 bn back in 2014.

The DGPC will also update the DPR of the 770 MW Chamkarchu project and see how it can be taken forward.

Chamkarchu and Wangchu were both listed as JV projects under 10,000 MW by 2020 but could not happen due to differences on the JV model between companies.

The DGPC MD said that the above projects are based in the Power System Masterplan where they are ranked higher and are the better projects and so their DPR was done and they can be taken up earlier.

Sunkosh

The biggest of all the projects is the 2,560 MW Sunkosh project. However, since the Sunkosh project comes under the larger Gelephu Mindfulness City, project there are not yet details on how the project will be taken up.

The project is estimated to cost well north of Nu 200 bn and will be a major reservoir project with tremendous potential to not only generate power, but ensure storage and generation in the winter months.

The project was in discussion in the past between Bhutan and India but got stuck due to implementation modalities and funding challenges.

So far, a press release talking about the aesthetics of the dam says the final bridge, will be hydroelectric dam, constructed on the city’s western border with a step-well retaining wall that offers viewpoints, staircases for meditative walks, and a temple. Visitors and pilgrims can ascend and descend along countless individual routes to the visitor center and temple nested on the face of the manmade cliff.

It says the Sunkosh Temple-Dam embodies in architectural form all the foundational elements of Gelephu: the harmonious coexistence of culture and nature, conceived as a hybrid child of Bhutan’s rich past heritage and its prosperous future legacy.

P II, P I, Nikachu, Solar and Wind

The DGPC MD said they will have to get going and the next one year will be taken up updating the DPR of the projects to factor in higher costs and any changes in the environment like changes in the river or river flow.

Earlier, in the 10,000 MW by 2020 GoI funding backed many of these projects but they did not happen and so a major challenge for Bhutan will be on how it secures billions in funding for these mega projects.

When comes to solar the DGPC MD said that the plan is to have 1,000 MW in solar power by 2030 by building small plants of 20 to 50 MW across the country. He said it cannot be done in a large way in one place.

On wind energy, some windfarms are possible but not at a large scale as many valleys in Bhutan do not have consistent wind.

DGPC is also doing at the possibility of doing geothermal energy in the longer term and here it will have to look at hot springs and other areas to do an assessment and see the options.

The DGPC MD said that the 118 MW Nikachu project will be done by the end of December or in January 2024. He said the project is funded by loans from the ADB and State Bank of India.

The Punatsangchu II project is making progress and is on track to be completed by mid 2024.

When it comes to the Punatsangchu I project the DGPC MD said that additional investigations are being carried out on the right bank and based on that the data will be studied by the experts.

The Project Preparedness Financing Agreement was signed between the Ministry of Finance, ADB and DGPC on December 18, 2023, for a concessional loan of USD 5 million to update the DPRs for the 404 MW Nyera Amari I&II and 180 MW Bunakha projects. DPGC will immediately initiate the updates of the DPRs. This will pave the way to ADB financing for these two important projects.

BBS | Sonam Tshering | December 7, 2023

If all goes to plan, the Nikachhu Hydropower Project in Trongsa will start commissioning from next month. According to the project management, all the major works required for electricity generation have been completed. The Druk Green Power Corporation says the project has completed almost 98 per cent of the overall work as of October this year. The project was initially planned to be completed in 2019.

According to the DGPC, all the necessary wet testing procedures which are testing water turbines are complete.

Construction works of the dam, headrace tunnel, and powerhouse have also been completed.

Following the commencement of the dam operation in November this year, the project team is set to initiate the charging of the water conductor system in the tunnel.

It is anticipated that water will reach the turbines inside the powerhouse for wet commissioning on or before 17^th December.

The Nikachhu Hydropower Project which began in 2016 is a subsidiary company of the Druk Green Power Corporation.

The 118MW project was estimated to cost nearly 12 billion ngultrum. It is being constructed by taking loans from the Asian Development Bank and commercial banks in India. The Asian Development Bank disbursed over five billion ngultrum and Indian Commercial Banks released more than three billion ngultrum for the project.

According to the project management, the Nikachhu Hydropower Plant is expected to generate 491 million units of electricity annually.

Kuensel | YK Poudel | December 7, 2023

Dubai, UAE—As Bhutan commits to advancing the development of a green economy, it unveiled the Green Hydrogen Roadmap on December 5 at the ongoing Bhutan Pavilion in Dubai.

Bhutan committed to carbon neutrality in the United Nations Framework Convention on Climate Change (UNFCCC) in 1992.

At COP15 in 2009, Bhutan declared its commitment to carbon neutrality, a promise that was reiterated in its NDCs in 2015. The second NDC in 2021 reinstates carbon neutrality through low-emission development strategies in food security, human settlements, and surface transportation.

The roadmap is part of Bhutan’s commitment to advancing the development of a green hydrogen economy to meet its energy and climate goals.

Green hydrogen is considered to be the cleanest and most sustainable energy source that can produce electricity, power industry, and enable transportation. It doesn’t generate any polluting emissions into the atmosphere.

Outlining the expert advisory groups and creating an investment packet to promote green hydrogen projects in Bhutan, the roadmap sets a goal for hydrogen pilot projects and plans to match hydrogen generation with demand. Further, demonstrates the nation’s energy strategy at a global scale.

Director for the Department of Energy, Ministry of Energy and Natural Resources, Karma P Dorji said that Bhutan has been able to launch the future of the green hydrogen roadmap to the larger world at the COP and pursue the energy for the future. “This in the long run will provide a tremendous economic opportunity for our economy.” 

“The roadmap outlines phased targets for hydrogen pilot projects, aligning generation capacity with demand growth. It establishes expert advisory groups, coordinates stakeholders and creates an investment outreach packet for green hydrogen projects in Bhutan,” he said. 

The plan, according to him, highlights opportunities and showcases a strategy for enhancing the energy value chain domestically and in the global market through the green hydrogen initiative.

The roadmap will detail the necessary procedures and milestones for the development and integration of hydrogen as a key energy carrier across numerous industries, particularly in the transportation sector. It will serve as a model for governments, industry, and stakeholders to follow to coordinate efforts and investments in the hydrogen economy.

Bhutan is well-suited for creating green hydrogen through electrolysis since it has an abundance of renewable energy sources, especially hydropower. Hydrogen fuel provides a steady and dependable source of electricity that may be used in a variety of industries, including mobility, industrial, and power generation.

Bhutan’s decision to concentrate on green hydrogen is consistent with the country’s aim of carbon neutrality and sustainable growth. The greenhouse gas inventory confirmed the country’s carbon neutral position, with emissions of 3.8 million tonnes of carbon dioxide equivalent (CO2e) in 2015, offset by sequestration of 9.4 million tonnes of CO2e. Bhutan exceeded the Paris Agreement’s carbon-neutral goal, reaching a net carbon sink balance of 5.6 million tonnes of CO2e.

Bhutan’s second Nationally Determined Contribution (NDC) describes the need for USD 3.44 billion in investments until 2030 to combat climate change and fulfil its climate goals.

According to a study, Bhutan’s energy consumption will be more than sixfold, and oil demand will be more than sevenfold by 2050, with the transportation sector being the major emitter of greenhouse gases under business-as-usual conditions. Bhutan, on the other hand, can retain its carbon neutrality until 2050 by cutting oil demand in the transportation sector and encouraging the use of electric vehicles and public transportation.

The price of hydrogen for Bhutanese customers would be determined by local market conditions, infrastructural development, and government policies supportive of the hydrogen economy, according to the department officials.

There are several advantages to using electricity for hydrogen production, including the integration of renewable energy sources and energy storage. Hydrogen production through electrolysis provides an avenue for incorporating wind and solar energy into the electricity grid.

The use of electricity for hydrogen synthesis has various advantages, including the use of renewable energy sources and energy storage. Electrolysis produces hydrogen, which can be used to integrate wind and solar energy into the power system.

Kuensel | YK Poudel | December 6, 2023

… eight pledges and declarations receive support, three more coming

Dubai, UAE—In a show of global solidarity governments, businesses, investors and philanthropies have announced over USD 57 billion across the climate agenda in the first four days of the 28th Conference of Parties (COP28) in Dubai. 

Bhutan has endorsed five declarations that concern the nation ranging from sustainable agriculture to health and renewable energy, among others. 

The United Arab Estates (UAE) is leading a process for all parties to agree upon a clear roadmap to accelerate progress through a pragmatic global energy transition and a “leave no one behind” approach to inclusive climate action.  

After an agreement to operationalise a fund for climate impact response on day one, announcements have come in across the entire climate agenda, including on finance, health, food, nature, and energy. 

Bhutan has endorsed the declarations on sustainable agriculture, resilient food systems and climate action—which will be launched later this week for discussion on its implementation.

Moreover, Bhutan endorsed the declaration on climate and health launched yesterday. It is a commitment to meet and collaborate on plans and policies, health sectors, curbing the climate-induced impacts and reducing emissions among others.

A global cooling pledge which Bhutan has endorsed was also launched yesterday. 

The declaration on global renewables and energy efficiency pledge. The endorsement agreed by 116 countries as of yesterday is towards worldwide installed renewable energy generation capacity of at least 11,000 gigawatts. 

The fifth declaration is a coalition for high-ambition multi-level partnerships launched on December 2. The pledge is to collaborate among governments on climate strategies, maximization of efforts to limit temperature rise to 1.5 degrees and enhance adaptation measures.  

However, Bhutan did not receive any information on peace and climate finance declarations. 

At a global scale, under the COP28 Presidency, the UAE has launched a US dollar 30 billion catalytic fund on climate finance, with an emphasis on unlocking private finance across the Global South. The country has also announced US dollar 200 million for SDRs and US dollar 150 million for water security. 

In addition, the World Bank has announced an increase of US dollar 9 billion annually to finance climate-related projects. And, in the first 48 hours of COP28, after a response to loss and damage was operationalized, US dollar 725 million has already been pledged. 

Further, US dollar 3.5 billion has been announced to replenish the Green Climate Fund, US dollar 2.7 billion has been pledged for health, US dollar 2.6 billion committed for food systems transformation, US dollar 2.6 billion pledged to protect nature, US dollar 467 million announced for urban climate action, and US dollar 1.2 billion for relief, recovery and peace. 

On energy, US dollar 2.5 billion was mobilized for renewables and US dollar 1.2 billion for methane emission reduction. US dollar 568 million was pledged to drive investments in clean energy manufacturing. 

Eight new declarations have been announced that will help transform every major system of the global economy. 

These include the first-ever declarations on food systems transformation and health, plus declarations on renewable energy and efficiency, as well as initiatives to decarbonise heavy-emitting industries. 

Three additional declarations will be announced in the coming days on hydrogen, cooling, and gender. The number of countries supporting these declarations and pledges is growing and demonstrates an unprecedented level of inclusivity at this COP. 

Over 100 countries in each sector have endorsed the pledges and declarations thus far.

The breakdown of financial pledges and contributions so far shows that US dollar 725 million has been endorsed for Loss and Damage, US dollar 3.2 billion for Green Climate Fund, 2.5 billion towards renewable energy, US dollar 568 million for technology, US dollar 1.2 billion for methane management and over US dollar30 billion for climate finance. 

Moreover, the countries endorsed USD 2.6 billion for food, USD 2.6 billion for nature, USD 2.7 billion for health, USD 150 million for water, USD 1.2 billion for relief, recovery and peace, and USD 467 million for local climate action. 

COP28 President, Dr Al Jaber, during a presidency press conference, announced that his office was the first to actively call on parties to come forward will a discussion on fossil fuel, centered around science and its call to action. 

“The goal of COP28 Presidency is to keep 1.5 degrees Celsius within reach,” he said. 

To meet the goal, the world must get to net zero emissions by 2050, and reduce emissions by 43 percent by 2030.

Kuensel | YK Poudel | December 6, 2023

… with high-integrity environmental benefits

Dubai, UAE—To meet Bhutan’s move towards exploring innovative financing solutions to support climate-resilient development, Bhutan and the World Bank launched the Bhutan Climate Fund (BCF) on December 4. 

It was a part of the Bhutan Pavilion’s series of sessions at the ongoing 28th Conference of Parties (COP28) in Dubai.

It aims to ensure transparency and accountability of the authorisation and transfer process of Bhutan’s carbon credits—to ensure that communities benefit from carbon revenues, the BCF will link with the National Digital Identity. 

The BCF is a first of its kind that will aggregate and monetize Bhutan’s high-integrity net negative greenhouse gas (GHG) emissions at a fair price, reflecting the opportunity cost of Bhutan’s remaining net negative.

According to officials from the Ministry of Energy and Natural Resources, the BCF will pool capital from donor contributions, help in addressing the high costs of ERCs through aggregation, a medium for adjusting fees to cover the opportunity cost for remaining net negative and help the government meet the sustainable development goal.

Bhutan is the world’s first carbon-negative country committed to remaining carbon neutral, keeping its total emissions below the carbon removal capacity of its forests through its 69.5 percent forest cover. 

The country’s rivers generate low-carbon electricity and in addition to its electricity consumption are entirely powered by renewable resources. Bhutan contributes to regional decarbonization by exporting run-of-river hydroelectricity. With an initial focus on the hydropower and forestry sectors, the Fund will build on the country’s Kyoto Protocol experience, robust and transparent infrastructure systems, and strong political commitment, including the Carbon Market Rules approved in 2023.

The BCF’s initial capitalisation goal is USD 50 million. The initial focus will be the run-of-the-river hydropower and forestry sectors. The government will develop infrastructure to participate in carbon markets. 

After that process, the plan is towards mitigation outcomes generation with a share of proceed plans to citizens in place. 

Some of the key highlights of the programme are renewable energy projects, forestry sector nature-based mitigation activities and energy efficiency—195 activities in 7 priority sectors in the national adaptation plan with 22 mitigation activities in place.

The investments are aimed at leveraging the championship of a carbon-negative country. An opportunity to support low-carbon development for one of the handful of carbon-negative countries in the world, strong political commitment to carbon neutrality, access to high-quality forest and hydropower credits, and bigger impacts of aggregating capital and managing the use of carbon revenue.

Kuensel | YK Poudel | December 5, 2023

Dubai- Bhutan, in conjunction with 122 other nations, endorsed the UAE Declaration on Climate and Health on December 3, committing to a promised funding window of one billion.

The commitment was made public during the ongoing 28th Conference of Parties (COP28) by President Sultan al-Jaber, preceding the inaugural Health Day at the UN Climate Conference.

The declaration signifies a dedication to meet and collaborate on policies, health systems, and responses to the impacts of climate change, including efforts to curb emissions and reduce waste.

This marks a significant milestone as it is the world’s first government acknowledgment of the escalating health impacts of climate change on countries and communities at the ground level.

The public can anticipate increased investments and benefits from enhanced climate actions, reduced air pollution, and lower healthcare costs as a result of this declaration.

Member states emphasised the importance of addressing the interactions between climate change and human health within the framework of the UNFCCC and the Paris Agreement, key international platforms for the global response to climate change.

According to the COP28 Declaration on Climate and Health, in light of the first Global Stocktake and lessons learned from the Covid-19 pandemic, the nations are committed to advancing climate-resilient development, strengthening health systems, and building resilient communities for the benefit of present and future generations.

To achieve better health outcomes, the declaring countries commit to transforming health systems to be climate-resilient, low-carbon, sustainable, and equitable. This includes better preparation for the impacts of climate change on communities and the most vulnerable populations.

The commitment also involves pursuing common objectives such as strengthening the development and implementation of policies maximising health gains from mitigation and adaptation actions, collaborating on human, animal, environment, and climate health challenges, and improving the ability of health systems to anticipate and implement adaptation interventions against climate-sensitive diseases and health risks.

Additionally, the countries agreed to promote steps to curb emissions and reduce waste in the health sector, including assessing greenhouse gas emissions, developing action plans, setting decarbonisation targets, and establishing procurement standards for national health systems.

Recognising the challenges faced by the health sector in accessing finance for health and climate change activities, particularly in low- and middle-income countries, the countries aim to leverage synergies at the intersection of climate change and health to improve the efficiency and effectiveness of finance flows.

To achieve these goals, the countries commit to better-integrating health considerations into climate policy processes and vice versa, including relevant Paris Agreement and UNFCCC processes, the design of nationally determined contributions, long-term low greenhouse gas emission development strategies, national adaptation plans, and adaptation communications.

Kuensel | Editorial | December 5, 2023

Bhutan has long been a beacon of environmental stewardship. The nation not only treads lightly on its sacred soil, but also actively contributes to the planet’s well-being by maintaining a carbon-neutral status.

Against this backdrop, the billion-dollar commitment echoes the global recognition that even those countries with an admirable ecological footprint, like Bhutan, are not immune to the health reverberations of our changing climate.

This is a new beginning in the saga of UN Climate Change Conference, This isn’t just about finances; it’s about a symphony of nations acknowledging the intricate relationship between climate and health.

Bhutan, often seen as a sustainability trailblazer, now stands shoulder to shoulder with nations facing similar challenges, proving that in the grand orchestra of global affairs, every instrument, no matter how small, plays a crucial role.

For Bhutan, the pledge presents an opportunity for collaboration and shared learning. This tiny Himalayan kingdom, known for its unique development philosophy, can share its journey toward carbon neutrality and, in turn, absorb the experiences of others. Bhutan’s model of prioritising Gross National Happiness alongside environmental conservation could offer a beacon of hope for those navigating the uncharted waters of climate health initiatives.

This has been the message have been trying pass for so many COP ago.

As the pledge unfolds, Bhutan’s commitment to mitigating the health impacts of climate change becomes even more critical.

While Bhutan has successfully kept its carbon emissions in check, the pledge emphasises the importance of adaptation. Our health systems need to be resilient in the face of emerging challenges, from the spread of diseases influenced by climate patterns to the impacts of extreme weather events on vulnerable communities.

One can’t help but ponder the ways in which Bhutan’s landscape, adorned with monasteries and prayer flags, is not just a sanctuary for the soul but a living testament to the interconnectedness of humanity and nature.

The global collaborative effort mirrored in the pledge resonates with Bhutan’s ethos of unity and shared responsibility. In the tapestry of international relations, Bhutan, with its commitment to carbon neutrality, weaves a vibrant thread advocating for the harmonious coexistence of nations and the planet.

As we scrutinise the pledge’s potential impact on Bhutan, it is crucial to consider the nation’s challenges. This is important.

The pledge may open avenues for financial support, but how will these resources be judiciously utilised to enhance our healthcare infrastructure, address health challenges specific to our unique terrain, and further embed sustainable practices into the fabric of our society?

This is just one question, there are many.

Bhutan’s participation in this global initiative reinforces our commitment to the Sustainable Development Goals. Beyond the carbon-neutral badge of honour, Bhutan strives to be a torchbearer for holistic development, where the well-being of the people is intricately tied to environmental sustainability.

The road ahead, filled with excitement and prosperity, beckons us. However, it also signifies that much work remains.

What Bhutan could contribute at COP28 is a huge achievement. And this is a big statement. It is a story, and a plea, of a world in the throes of extinction.

Kuensel | YK Poudel | December 5, 2023

… the registry was launched with World Bank and Singaporean support

With the launch of Bhutan’s National Carbon Registry yesterday, the country can now collaborate with the World Bank climate warehouse.

The registry was unveiled at the ongoing 28th Conference of Parties (COP28), attended by officials from the World Bank, Singapore, and the government of Bhutan.

Bhutan has now integrated with the Climate Action Data Trust (CAD Trust) meta-data layer—a decentralized, blockchain platform developed by the World Bank, International Emissions Trading Association, and Singapore in December 2022.

Bhutan signed the Paris Agreement on April 22, 2016, and ratified it in 2017.

Aligning with Article 6 of the Paris Agreement, the Department of Environment and Climate Change (DECC), with support from Druk Holding and Investments (DHI), generated a national registry responsible for utilizing an electronic registry that complies with the orientation for unit identification and tracking of carbon.

Associate Analyst, DHI, Zeerie Chhodoen, said that the registry is capable of facilitating the transfer of unit ownership or holdings and transparently identifying units of carbon status, including issuance and cancellation status. “The registry leverages a common data model to aggregate and harmonize data from country registries.”

“The system employs AI and blockchain technology that will foster capacity building and experiential learning between various sectors, ensuring bottom-up ownership,” she said.

The registry, according to her, will help Bhutan avail the opportunities of global carbon markets. The registry aims to raise environmental ambition, build capacity and climate resilience while contributing to global efforts in mitigating greenhouse gas emissions. Bhutan seeks to promote sustainable practices and low-carbon solutions by exploring the development of carbon markets and generating carbon credits.

Moreover, the plan is to have accurate carbon tracking, accounting, and reporting of emission reduction units—harnessing carbon finance is one of the aims to advance the country’s climate mitigation strategies and objectives.

Carbon Markets Rules for the Kingdom of Bhutan 2023 state that any entity wishing to participate in carbon markets should seek a Letter of Authorisation from the DECC regarding a mitigation outcome activity carried out within Bhutan and validated or verified using the procedures set out by the National Environment Commission Secretariat.

As a legislative compliance policy with all relevant national laws and international legal instruments in force in Bhutan, the National Environment Protection Act 2007, Climate Change Policy 2020, and The Paris Agreement are the guiding policies towards the carbon registry.