|Sector / Subsector
Agriculture, natural resources and rural development
- Water-based natural resources management
- Energy sector development and institutional reform
- Large hydropower generation
- Renewable energy generation - small hydro
- Transport policies and institutional development
|Project Rationale and Linkage to Country/Regional Strategy
The main emphasis of climate change mitigation in Bhutan is the energy sector including hydropower and cleaner fuel though lighting, cooking and transport. The sector is a major aspect of the ADB country partnership strategy for Bhutan. Capacity development for environment management, particularly on the adaptation of climate change, is also one of the key cross-cutting themes of ADB's assistance for the country.
Bhutan's hydropower development is the larges driving factor of its pro-poor economic growth since power exports account for more than 40% of national revenus and 25% of GDP. The Government of Bhutan aims to develop additional 10,000 MW for trading power and clean development mechanism (CDM) benefits in line with the bilateral agreement with the Government of India. in 2008, the Sustainable Hydropower Policy was issued to promote hydropower development with both public and private sector participation. Given these initiatives, in 2008 ADB provided loans to assist Dagachhu hydropower export development through a public private partnership and CDM, with an attached TA to develop the power sector's comprehensive institutional capacity including CDM propomtion for more projects. The low-emission development paths will be in line with the ADB's Energy Policy and SARD's Climate Change Implementation Plan that highlights energy efficiency, renewable energy, and technology transfer.
ADB supported capacity development for improving sectoral environmental guidelines and compliance of NEC through three TAs consecutively implemented since the 1990s. To recognize climate change's sensitivity to environment, the Global Environment Facility (GEF) through the United Nations Developent Programme (UNDP) helped NEC prepare national plans (i.e., NAPA and the National Disaster Risk Managemement Framework) in 2006. The specific priorities for addressing adaptation to climate change are included in the Government's 10th Five Year Plan (2008-2013). Particularly, potential adverse impaces on hydrological flows for power plants and irrigation will be sensitive to the national energy and food security and inclusive economic growth. They will also address threats of flood hazards including GLOF. Since the Water Policy was approved in 2007, the Government has been formulating the Water Act to promote the integrated water management in a sustainable manner. It is crucial for NEC to mainstream climate change adaptation in environment management and to assess the sustainable water resource usage and water-related disaster risks on sector and project levels.