In a bold move to combat the adverse effects of climate change, Bhutan’s Department of Water, in collaboration with the Asian Development Bank (ADB), has unveiled plans to mobilize investments for a comprehensive climate adaptation strategy. The initiative, which aims to secure over Nu 71 billion (approximately USD 830 million), is geared toward a host of projects designed to fortify the nation against climate challenges.
A Multi-Faceted Investment Blueprint
The draft “Bhutan’s Adaptation Investment Plan for the Water Sector” lays out 11 distinct investment packages that span various sectors critical to climate adaptation. Projects under the plan are set to cover water and disaster management, forestry, hydropower, agriculture, as well as research and policy development. A key focus of the plan is on nature-based solutions that will enhance water supply resilience. Initiatives such as spring shed management, river basin management, and modernized forestry practices are expected to play a vital role in ensuring sustainable water resources amidst a changing climate.
Senior Climate Change Specialist at ADB, Nanki Kaur, highlighted the innovative approach behind the plan: “We have packages centred on nature-based solutions like forestry, spring shed management, and river basin management. These aim to enhance water supply resilience in a changing climate. We also have packages designed to improve decision-making through decision support tools, climate information services, early warning systems, and, importantly, packages focused on research, skill development, and enabling policies.”
Broad-Based Support and Collaborative Efforts
The ambitious plan has already attracted interest from various stakeholders, both local and international. Organizations such as the Japan International Cooperation Agency (JICA), the United Nations Development Programme (UNDP), Bhutan’s Ministry of Finance, and the Bhutan Chamber of Commerce and Industry have signalled their intent to participate in funding and executing the projects. Complementing these investments, the Bhutanese government is also set to contribute financially, emphasizing the country’s commitment to prioritizing climate resilience.
Tenzin Khorlo, Chair of Bhutan’s Adaptation Investment Plan for the Water Sector, elaborated on the strategic focus: “Bhutan has identified seven sectors to prioritise for climate change mitigation and adaptation. Due to limited funding, we must prioritise. Water is the focus, as it impacts all sectors and offers cost-cutting opportunities. We aim to develop another investment plan that includes both public and private sector funding and a business model.”
Looking Ahead
The comprehensive investment plan is slated for final approval by June this year, with implementation expected to begin by the end of the current Five-Year Plan. There is also potential for the plan to extend into the next cycle, ensuring long-term commitment and support for climate adaptation measures.
As Bhutan embarks on this transformative journey, the dual promise of environmental sustainability and financial return for investors highlights an innovative model for climate resilience that could serve as a blueprint for other nations facing similar challenges.
