Indian Council of World Affairs

Introduction 

The Kingdom of Bhutan released its first National Adaptation Plan (NAP) in September 2023[i] to address the insecurities regarding the country's resilience to the effects of global environmental degradation and climate change. NAPs play a vital role in a country’s climate change adaptation process and provide a comprehensive framework to strategically move forward with ways to safeguard the country and its people against the effects of climate change. With the release, Bhutan has become one of the 16 Least Developed Countries (LDCs) to come up with a national climate adaptation plan.[ii]

The NAP holds much significance as Bhutan is a carbon-negative country. However, its efforts at maintaining the same have come short as it continues to face adverse effects of climate change. Thus, the NAP is a positive step forward for Bhutan, considering the necessity of strategic adaptation planning to tackle accelerated global warming and increasing temperatures.[iii] Moreover, the plan deserves attention against the backdrop of the COP28 Summit in Dubai. Bhutan collaborated with the Asian Development Bank (ADB) and Nepal to launch an adaptation and resilience initiative for the affected Hindu Kush Himalayan region,[iv] and has endorsed five declarations regarding climate sustainability and health.[v] Therefore, Bhutan’s exemplary commitment toward climate neutrality and the methods through which they have approached this issue is remarkable and holds great potential to set a precedent in the field of climate adaptation. Hence, this issue brief aims to discuss the prospects, objectives, and challenges delineated in the country’s NAP. 

The plan’s meticulous preparation began in 2019 and involved the participation of every sector in the government and the private sector, as well as, civil society and academia.[vi] It examines the medium and long-term priority areas for Bhutan to integrate into its climate action and development plans to build a robust resilience against climate change. The NAP is prepared in correlation to the Comprehensive National Development Plan (CNDP) 2030, released in 2019 by Bhutan, which serves as the foundational document of future policies on climate change adaptation. The NAP builds on the existing efforts to counter climate change effects, such as the National Adaptation Programme of Action projects introduced in 2006 and the steps taken by the country based on its Nationally Determined Contributions (NDC), which was first submitted in 2015.[vii] With the help of such initiatives, Bhutan aims to support and strengthen its mitigation practices.   

Prospects and Objectives of the NAP 

The NAP delineates prospects, approaches, and objectives in its five chapters, with each chapter focusing on a particular stage of the process of operating NAP in the long run. The first chapter addresses the long-term adaptation process according to the national circumstances and delineates the objectives and principles of the plan. The second chapter provides an overview of the climate risks and vulnerabilities across various sectors, including water, agriculture, forest and biodiversity, energy, and human health. The third chapter is further divided into two sections; the first half summarises the adaptation priorities, and the second half explains the enabling activities to ensure effective adaptation. It discusses the plans to enhance climate information and knowledge systems to ensure long-term and sustainable adaptation practices. The fourth and fifth chapters discuss the implementation strategy and the monitoring and evaluation of the plan, respectively, as an integral approach to materialising the plan.[viii] Collectively, building resilience against climate change and understanding the needs of vulnerable groups to facilitate growth at both local and national levels are the primary goals of the NAP.  

Challenges Outlined in the NAP 

Besides the objectives, it will be important to take note of the challenges that have been outlined in the NAP. It discusses three key climate-risks induced challenges that Bhutan will face in its pursuit of adapting and building resilience against the effects of climate change. 

First, water shortage in the country poses hurdles in the process of climate sustainability. During the preparation of the NAP, the Climate Risk Assessment process noted a risk of local water shortage due to the drying of water sources and a noticeable decreasing trend in the country’s winter precipitation. The agriculture sector, which supports 50 percent of Bhutan’s population, will bear the brunt as these water shortages, combined with pests, poor soil quality, extreme events, etc, will further negatively impact the sector.[ix]

Second, the country faces the threat of increased forest fires due to a consistent rise in temperature. Forests in Bhutan cover 70 percent of its land area and play a significant role in maintaining its carbon emission balance.[x] Being a carbon-negative country, Bhutan hopes to create a carbon sink by preserving at least 60 percent of its land area as a forest area, as its forests absorb more carbon dioxide than the country emits.[xi] However, the persistent rise in warming leading to drier conditions might compromise the country’s goal of maintaining a carbon sink. 

Third, the issue of energy insecurity poses another challenge. Bhutan produces almost 100 percent of its electricity through hydropower, which also helps in the country’s pursuit of remaining carbon-neutral.[xii] Hydropower also contributes largely to the country’s revenue through the sale of electricity. However, adding to the woes of water shortage, the production of hydroelectricity might also be affected due to worsening climate conditions that predict drier winters.[xiii] Such issues born out of climate degradation and its consequential impacts pose a serious threat to the country. 

Implementation Challenges for Bhutan and the Measures Initiated 

Keeping in view this range of challenges, Bhutan’s NAP devises a strategic approach to work on its sustainable growth and climate adaptation. However, implementing the NAP may be an arduous task for Bhutan due to the huge amount of resource requirement.[xiv] According to an analyst at UNDP Bhutan, economic paucity could pose a major challenge for Bhutan to implement this plan, as estimations suggest that it would require at least USD 14 billion over the next 15 years for the plan’s implementation.[xv] The country relies majorly on its tourism revenue, and the COVID-19-induced lockdown strained the economy by bringing tourism to a halt and further disrupting trade and supply chains.[xvi] Furthermore, Bhutan is closer to an eventual upgrade from the status of a Least Developed Country to a Developing country, which would entail missing out on special consideration for development financing.[xvii] Hence, Bhutan might have to come up with a balanced and coordinated approach to tackle these challenges collectively. 

Bhutan has initiated certain measures to for revenue generation post-Covid. It has reopened its tourism sector and to promote it based on its old charm, the country halved its tourism fee from USD 200 per night to USD 100 per night.[xviii] However, to keep stock of the potential carbon emissions and finance for adaptation, the country has also increased the “Sustainable Development Fee” to USD 200 per night for every visitor.[xix] Additionally, despite being broadly cautious of foreign investments, the country has started to invite Foreign Direct Investments (FDI) in various sectors, while focusing on privatising its public-sector enterprises, to foster economic efficiency and growth.[xx]

Furthermore, Bhutan’s NAP discusses specific measures to ensure a consistent flow of finance. It recognises that sources such as the Green Climate Fund, Special Climate Change Fund, Adaptation Fund, etc., would continue to provide integral support toward implementing the plan.[xxi] In terms of multilateral and bilateral support, the country will look into loans and grants from multilateral development banks and its bilateral cooperative relations with over fifty countries.[xxii]

India-Bhutan Cooperation 

India-Bhutan cooperation plays a significant role in this regard. India’s increased demand for electricity[xxiii] is an avenue for collaboration with Bhutan, further strengthening their relationship. In 2021, the two countries signed a Memorandum of Understanding to cooperate on the environmental front in light of the increasing ill effects of climate change on both countries.[xxiv] Continuing the cooperation further, in April 2023, the two countries extended their commitment to the hydropower projects in Bhutan. India has so far constructed four hydroelectric projects in Bhutan with two more under construction, while Bhutan, in turn, exported electricity generated worth INR 2443crore to India.[xxv] This cooperative transaction provides a consistent flow of revenue for Bhutan and assures India of necessary supply of electricity.[xxvi]

The King of Bhutan, Jigme Khesar Namgyel Wangchuck, visited India in November 2023 and extended the energy cooperation between the two countries to include non-hydro-renewable sources. Both countries decided to expand their cooperation in the field of renewable energy with a focus on solar power and other green initiatives such as hydrogen and e-mobility.[xxvii]

In perspective 

Bhutan has diplomatic relations with a total of 54 countries and has embassies in an even lesser number of countries, which for long has been regarded by analysts as a “self-isolationist” tendency.[xxviii] However, its approach after the COVID-19 pandemic suggests that it wishes for a more dynamic foreign policy and hopes to engage in more multilateral and bilateral ties including in support of the country’s pursuit of materialising its National Adaptation Plan. 

Another noteworthy detail in the NAP is the involvement of people in the process. The NAP hopes to include the people of Bhutan in the mitigation and adaptation process by raising awareness about an environmental-friendly lifestyle and the benefits of adopting the same.[xxix] Akin to PM Modi’s Lifestyle for Environment[xxx] initiative, Bhutan may also play a definitive role in devising a climate-conscious citizenry which helps in the formation of a sustainable and environmentally sound society.

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*Vijay Anand Panigrahi, Research Intern, Indian Council of World Affairs, New Delhi
Disclaimer: Views expressed are personal.

Endnotes:

[i] Wangmo, Dechen. 2023. “Bhutan launches its first National Adaptation Plan.” United Nations Development Programme. https://www.undp.org/bhutan/news/bhutan-launches-its-first-national-adaptation-plan, accessed on October 3, 2023.

[ii]  Ibid.

[iii] Edmonds, H. K., C. A. Lovell, and J. E. Lovell. 2023. “The Inequities of National Adaptation to Climate Change.” Resources 12 (1). https://doi.org/10.3390/resources12010001, accessed on October 29, 2023.

[iv] Um, Woochong. 2023. “Launch of the Building Adaptation and Resilience in the Hindu Kush Himalayas Initiative at COP 28 - Woochong Um.” Asian Development Bank. https://www.adb.org/news/speeches/launch-building-adaptation-resilience-hindu-kush-himalayas-cop-28-woochong-um, accessed on December 7, 2023.

[v] Poudel, Y. K. 2023. “Bhutan endorses five declarations at COP28.” Kuensel Online. https://kuenselonline.com/bhutan-endorses-five-declarations-at-cop28/, accessed on December 7, 2023.

[vi] Wangmo, op cit.

[vii] Ibid.

[viii] Kingdom of Bhutan. 2023. First National Adaptation Plan 2023. N.p.: Royal Government of Bhutan. https://unfccc.int/sites/default/files/resource/NAP-Bhutan-2023.pdf, accessed on October 3, 2023.

[ix] Ibid.

[x] Ibid.

[xi] GVI. 2022. “How Bhutan became a carbon-negative country.” GVI. https://www.gvi.co.uk/blog/bhutan-carbon-negative-country-world/, accessed on November 9, 2023.

[xii] Kingdom of Bhutan, op. cit.

[xiii] Ibid.

[xiv] Edmonds, op. cit.

[xv] Wangmo, op. cit.

[xvi] Nayak, Sohini. 2022. “The Bhutanese economic revival.” Observer Research Foundation. https://www.orfonline.org/expert-speak/the-bhutanese-economic-revival/, accessed on October 16, 2023.

[xvii] Kingdom of Bhutan, op. cit.

[xviii] Agnihotri, Akanksha, Gopal Sharma, and Robert Birsel. 2023. “Bhutan slashes daily tourist fee by half in bid to attract more visitors.” Hindustan Times. https://www.hindustantimes.com/lifestyle/travel/bhutan-slashes-daily-tourist-fee-by-half-in-bid-to-attract-more-visitors-101693038655455.html, accessed on November 10, 2023.

[xix] Ibid.

[xx] Ahmad Ansari, Mohammad Sultan, and Shad A. Khan. 2023. “Bhutan seeks out sustainable foreign investment.” East Asia Forum. https://www.eastasiaforum.org/2023/04/28/bhutan-seeks-out-sustainable-foreign-investment/, accessed on November 5, 2023.

[xxi] Kingdom of Bhutan, op. cit.

[xxii] Ibid.

[xxiii] Climate Action Tracker. 2023. “Policies & action.” Policies & action | Climate Action Tracker. https://climateactiontracker.org/countries/india/policies-action/, accessed on December 2, 2023.

[xxiv] Ministry of External Affairs, Government of India. 2021. “India and Bhutan sign MoU for developing cooperation in the areas of Environment.” Ministry of External Affairs. https://www.mea.gov.in/press-releases.htm?dtl/33930/India_and_Bhutan_sign_MoU_for_developing_cooperation_in_the_areas_of_Environment, accessed on November 28, 2023.

[xxv] Embassy of India, Bhutan, op. cit.

[xxvi] Laskar, Rezaul H. 2023. “India, Bhutan agree on steps to boost cooperation in hydropower, trade and space.” Hindustan Times. https://www.hindustantimes.com/india-news/india-and-bhutan-deepen-cooperation-in-hydropower-trade-and-space-technologies-during-bhutan-king-s-visit-to-new-delhi-101680705638342.html., accessed on November 28, 2023.

[xxvii] Business Standard. 2023. “India, Bhutan agree to extend energy partnership to non-hydro renewables.” Business Standard. https://www.business-standard.com/world-news/india-bhutan-agree-to-extend-energy-partnership-to-non-hydro-renewables-123110601424_1.html., accessed on November 28, 2023.

[xxviii] Adlakha, Hemant. 2023. “Expert Explains | Bhutan's King in India as Beijing-Thimpu speed up border talks: Why New Delhi is concerned.” The Indian Express, November 6, 2023. https://indianexpress.com/article/explained/bhutans-king-in-india-beijing-thimpu-border-talks-9014771/, accessed on November 18, 2023.

[xxix] Poudel, Y. K. 2023. “National adaptation plan for climate – resilient development strategy.” Kuensel Online. https://kuenselonline.com/national-adaptation-plan-for-climate-resilient-development-strategy/, accessed on December  2, 2023.

[xxx] Government of India. (n.d.). Lifestyle for Environment - LiFE. MyGov.in. Retrieved December 21, 2023, from https://www.mygov.in/life/, accessed on December 21, 2023.