Bhutan to define biodiversity and climate investments and opportunities

With a two-day workshop commencing Monday 18 July in Thimphu, Bhutan begins a three-year journey to determine how best to finance the nation’s rich biodiversity conservation and climate action.

With more than 50 percent of the total land area under the protected area system and a constitutional mandate to preserve at least 60 percent of the nation under forest cover for all time, Bhutan is a global leader in environmental conservation. Bhutan’s forests can sequester 6.3 million tons of carbon dioxide - four times of what the Bhutan emits - making it world’s only carbon negative country. Recent studies valued Bhutan’s total ecosystem services to be worth US$ 15.5 billion per year.

However, for a developing country like Bhutan, continued conservation comes at a cost and will require concerted effort: Bhutan has one of the highest per capita fuel wood consumption in the world and 69 percent of the population relies on climate-sensitive agriculture. At the same time, the Bhutanese economy is dependent on hydro-power, a sector vulnerable to impacts of climate change. The global platform and network of BIOFIN therefore presents an opportunity for Bhutan to learn from other nation’s experiences, and to share its own, such that both national and global biodiversity conservation and climate action can be assured. Given Bhutan’s unique position and scope to demonstrate its leadership in implementing the three prioritized Sustainable Development Goals (SDGs), preliminary ideas for BIOFIN Bhutan indicates that there are existing and potential synergies between the three SDGs and their initiatives.

Bhutan joins 29 other nations in this effort as a member of the United Nations Development Programme’s (UNDP’s) Biodiversity Finance Initiative (BIOFIN), designed to leverage resources for biodiversity conservation through long-term financial solutions by joining hands with national biodiversity stakeholders and global conservation partners. Speaking at the launch of BIOFIN, Agriculture minister Lyonpo Yeshey Dorji said that while biodiversity continues, “To be of great economic, social, ecological, cultural and spiritual importance to the Bhutanese people”, it is essential for countries like Bhutan to assess financial gaps. Potential revenue streams beyond traditional development financing will be explored, considering the private sector, local fund providers, and other partners in line with the blended finance vision of Agenda 2030.

BIOFIN aims to build an evidence-based investment case to attract investors to support the achievement of SDG 15 on Biodiversity, Forests and Desertification, as well as making progress against other SDGs including SDG 13 on Climate Action, and SDG 1 on the eradication of poverty. Addressing the participants during the launch, Ms. Christina Carlson, UNDP Bhutan’s Resident Representative said, “There is much scope to unify the approaches, allowing for a more integrated analysis of public investments and gaps for these SDGs.”