Bhutan - Country Climate and Development Report

Overview & Synopsis

Building on the analytical framework of this CCDR, this report outlines steps to strengthen Bhutan’s resilience while accelerating economic diversification. Despite the emerging climate challenges, Bhutan can drive sustainable growth by leveraging its carbon-negative status and abundant natural resources. Key resilience-building measures include enhancing the spillovers of hydropower production to related sectors, raising agricultural productivity through CSA adoption, and strengthening infrastructure to better support economic activity despite climate risks. Creating the conditions for sustainable green growth in forestry and tourism will support economic diversification and create opportunities for green job creation. The key enablers are harnessing innovative climate finance mechanisms, strengthening institutional capacity, and empowering communities to drive locally-led climate adaptation.