Bhutan strengthens biodiversity conservation through results-based budgeting exchange in Thailand

Bhutan, renowned for its commitment to Gross National Happiness (GNH), has significantly strengthened its environmental and biodiversity conservation efforts. A recent learning exchange with UNDP BIOFIN in Thailand focused on implementing Result-Based Budgeting (RBB) for Local Administrative Organizations on biodiversity.

Bhutan, a country celebrated for its commitment to Gross National Happiness (GNH), has taken a significant step forward to strengthen its efforts to protect the environment and biodiversity. A recent learning exchange with UNDP BIOFIN in Thailand focused on the implementation of results-based budgeting (RBB) for local administrative organizations (LAOs) to optimize biodiversity financing.

Why RBB for biodiversity?

Results-based budgeting (RBB) is a strategic approach that ensures government spending is focused on measurable outcomes, which increases efficiency and accountability. Bhutan’s Biodiversity and Climate Expenditure Review (BCER) 2017-2022 shows that local governments allocate 21.3% of their budget to biodiversity and climate initiatives — one of the highest proportions. By introducing RBB, Bhutan’s local governments can better prioritize investments, track progress, and optimize conservation outcomes.

Key lessons learned from the learning exchange

BIOFIN Thailand organized a validation workshop on RBB in collaboration with various institutions such as the Office of Natural Resources and Environmental Policy and Planning (ONEP), the Plant Genetic Conservation Project under the royal initiative of HRH Princess Maha Chakri Sirindhorn and Chulalongkorn University. The workshop aimed to refine biodiversity-focused budgeting and improve the capacity of local administrative organizations (LAOs) in Thailand.

The Bhutanese participants actively validated the RBB guidelines and curricula developed by BIOFIN Thailand. They also observed a practical exercise on formulating biodiversity-centred budget proposals, learning firsthand how Thailand integrates biodiversity considerations into local governance.

Key outcomes of the exchange included:

• The importance of strong leadership in promoting biodiversity initiatives.
• The role of private sector engagement in biodiversity conservation.
• Innovative nature-friendly infrastructures and bioeconomy approaches.

Picture: Ministry of Finance officials engage in a result-based project planning exercise during the 2nd day of the RBB curriculum validation workshop.

Practical implementation and field visits

To gain practical experience, the Bhutanese delegates visited the Durian Learning Centre at Pakret Municipality in Nonthaburi. They explored the innovative QR code-based biodiversity data collection, youth engagement strategies, and local conservation initiatives. In addition, through their interaction with BEDO Thailand, they gained insights into innovative financing mechanisms such as:

• Business and Biodiversity Check
• Community-based bioeconomy initiatives
• Development of a municipal biobank
• Biodiversity certification for organic products

During a visit to the Fah Sai Community Shop, the delegates observed Thailand’s approach to sustainable products based on biodiversity and presented a practical model that Bhutan could adopt.

Budgeting for biodiversity: lessons from Thailand

An important part of the exchange was Bhutan’s interaction with the Bureau of Budget under Thailand’s Prime Minister’s Office. This session provided a deeper understanding of how Thailand integrates environmental and biodiversity aspects into its national budget framework. Bhutanese officials from the Ministry of Finance emphasized the importance of tagging biodiversity-related expenditures during the budget cycle, an approach Bhutan intends to explore as it institutionalizes BCER in central agencies.

A discussion on digital monitoring and evaluation (M&E) systems emphasized the need for modern tools to track the effectiveness of biodiversity financing. Bhutan intends to strengthen this area in its transition to Performance-Based Budgeting (PBB) at the central level.

Exchange on innovative solutions for biodiversity financing

BIOFIN Bhutan and Thailand explored various innovative financing solutions, including Thailand’s National Biodiversity Finance Plan, Crop and Livestock Insurance Scheme, and 5th NBSAP, as well as studies on incentives harmful to biodiversity. This exchange provided a platform for both countries to share implementation strategies, learn from one another, and identify best practices for adapting these solutions effectively.

Regarding harmful incentives to biodiversity and nature, participants discussed the importance of scientific research and evidence-based policy interventions to ensure efficient biodiversity and environmental subsidies do not lead to unintended negative expenditures. Thailand’s study on harmful subsidies highlighted how certain financial incentives, particularly in agriculture and construction, can have long-term negative impacts on both the environment and the economy. These subsidies, often based on misunderstandings of local ecological conditions, contribute to the overexploitation of natural resources and unsustainable practices, creating a vicious cycle of environmental degradation.

The key takeaway from this session was the need to integrate and strengthen the role of science in policy interventions, ensuring subsidies effectively support biodiversity conservation. Additionally, Bhutan shared its experience in developing a national crop and livestock insurance scheme covering human-wildlife conflict (HWC), weather-related risks, diseases, and pest outbreaks. Given that both Thailand and Bhutan have agrarian economies, the discussion on providing a safety net for farmers through innovative risk-transfer mechanisms was particularly relevant.

Next steps for Bhutan

Knowledge exchange and open dialogue between the public, private, and academic sectors remain crucial in driving biodiversity conservation efforts—a key theme of the valuable takeaways from Thailand. The sessions over the five-day exchange underscored the importance of engaging experts and private actors in policymaking and coordinated efforts to effectively address biodiversity conservation.

Following this learning exchange, Bhutan will focus on finalizing finance solution proposals to support Performance-Based Budgeting (PBB) with biodiversity-related ministries. This initiative aims to strengthen institutional capacities and improve the quality of budget proposals for biodiversity conservation. Additionally, Bhutan will prioritize translating the National Biodiversity Strategy and Action Plan (NBSAP) into local plans and budgets, ensuring biodiversity considerations are effectively integrated into planning processes at all levels.

This exchange marks a significant milestone in Bhutan’s journey toward incorporating biodiversity considerations into its budgeting processes, fostering sustainable environmental conservation practices.