Bhutan Embarks On Green Financing Roadmap, To Mitigate Climate Change Impact


A Joint Learning Program on ‘Inclusive green finance’ was held in the capital, Thimphu from 20-22 January 2020.

(Source: Ecotrendies)


By Kinley Dem BBS

Climate change and its dire consequences could potentially pose a big threat to Bhutan’s economy.

Despite conservation being at the forefront of development in the country, the impact of climate change is inevitable.

According to the Alliance for Financial Inclusion (AFI), the effects of climate change are already visible.

To address this pertinent issue, solutions have been sought. One of which is ‘Inclusive Green Financing’ and it refers to the provision of financial services for climate action and related projects.


Source: Alliance for Financial Inclusion


“We can see the effects quite differently, rise in sea levels, it can be hurricanes and storms, increasing temperatures and melting glaciers. These effects can also be seen here in Bhutan in a number of different ways and it will be increasing in the next decades to come. It is important to see that Bhutan as a country, as a whole, coming together to mitigate and adapt to climate change. And ‘inclusive green finance’ is one part of those efforts,” said Johana Nyman, the Head for Inclusive Green Finance at AFI.

In this regard, a three-day Joint Learning Program (JLP) on ‘Inclusive green finance’ was held in the capital, Thimphu from 20-22 January 2020.

Co-hosted by the Royal Monetary Authority (RMA) of Bhutan and AFI, over 70 participants comprising of RMA Bhutan staff, local financial and non-financial institutions as well as government agencies attended the JLP.

In addition, international experts from Bangladesh Bank, the National Bank of Cambodia, Nepal Rastra Bank. Central Bank of Sri Lanka and the Bank of Thailand also attended and shared their insight and experience in this emerging policy area, while the Central Bank of Seychelles was also present throughout the JLP as an observer.

What is ‘Inclusive Green Finance’?

Inclusive green finance is all about how financial regulations can enable financial inclusion that builds resistance and mitigates climate change.


Source: Asian Development Bank 


“There are so many initiatives happening at the national level in Bhutan when it comes to climate change and environmental protection and having a strong green finance component of that will even make it even stronger and hopefully more efficient as well. It’s all about protecting the people from the effects of climate change and to the possible extent of stopping climate change,” Johana Nyman added.

Lending schemes from the Royal Monetary Authority (RMA) of Bhutan

Royal Monetary Authority (RMA) as the central bank in Bhutan, on the other hand, is working to come up with a framework to engage banks towards lending to environment-friendly projects.

According to the RMA, they are taking the lead with AFI’s endeavour to develop a common framework which can be followed by all member countries.

RMA said that Bhutan is way ahead of other countries in terms of pursuing inclusiveness as well as green financing.

Merits of Green Finance

“As it is, all loans are actually green finance because environment clearance is one of the criteria for assessing a loan from a bank. Now when you package it as green finance then it becomes very attractive to the outside world and it also becomes very meaningful within the country saying that we are actually environmentally very conscious. Even if you take a loan and do business, we are very much within the consciousness of following strong principles of environmental protection,” said Dasho Penjore, the Governor of RMA.

Underscoring the importance of the Green Finance roadmap, Dasho Penjore said that in the modern era, everyone must play their part in ensuring environmental protection and sustainability.

Therefore the roadmap must be easily understood across all levels, from governors to financiers and even borrowers, emphasising that banks can contribute significantly to green initiatives.


This article first appeared in BBS and has been edited for Daily Bhutan.



Related Posts

USD 25.3m Green Climate Fund To Address Climate Change Adaption...

The project can help address climate change adaptation challenges facing Bhutan, particularly in the agriculture sector.

Jan 15, 2020 16:28

Bhutan’s Prime Minister Dr Lotay Tshering Spoke At Climate Action...

“We call on all countries to submit enhanced climate pledge and long-term low greenhouse emission development...

Sep 26, 2019 23:08

Media Workshop On Climate Change, Solutions & Sustainable...

With most of the participants being media practitioners, they will now work towards producing content that will help the...

Sep 05, 2019 23:58

United Nations In Bhutan Committed To Combating Climate Change

The UN in Bhutan plans to make the agricultural sector more resilient to climate change.

Jul 29, 2019 22:41

Bhutan Implements National Adaptation Plan To Counter Adverse...

The new project builds on work already underway to identify and respond to climate change impacts.

Jun 21, 2019 23:58

Workshop Held In Bhutan To Tackle Climate Change In The Hindu...

“Bhutan had great examples such as promoting organic farming, protecting biodiversity and building ecosystem...

Jun 03, 2019 21:28



Bhutan Launched 21st Century Economic Roadmap To Engage Citizens On Nation’s Progress

Prime Minister Dr. Lotay Tshering launched the website and it can be accessed through

Feb 25, 2020 23:38

Bhutan’s Tarayana Foundation Launched Micro-loans For Rural Community Development

The pilot phase of the programme will start from this year in Samtse, Tsirang and Zhemgang for 18 months.

Feb 21, 2020 23:48


The Bizarre Culture of Night Hunting in Bhutan is Fading

In many parts of eastern Bhutan, Night Hunting is a courtship tradition, a rural version of urban dating. In hard-working, farming...

Feb 27, 2020 06:44

Tribes Of Bhutan - The Brokpas

Merak and Sakteng is home to the Brokpas, a semi-nomadic yak herding tribe who originated from the Tshoona region of Tibet.

Feb 22, 2020 23:48


Karma – Female Archer From Bhutan Qualified For Tokyo 2020 Olympic Quota

Karma has been specialising in Olympics-style archery since 2009.

Nov 30, 2019 13:18

Bhutan’s Pelden Wangchuk Wins 10th Edition Of Tour 0f Dragon Mountain Bike Race

This year, the race also saw the highest number of female participants compared to past years.

Sep 10, 2019 01:08


Centre Of Excellence For Software Engineering Launched By Bhutan’s Thimphu Techpark

The purpose of establishing this centre is to fulfil His Majesty the King’s vision of using technology to solve problems.

Feb 24, 2020 23:58

Two ‘Made In Bhutan’ Products To Hit The Market Soon, Also Eyeing Overseas Foray

Druk Peci and Bhutan Green Product were launched on 19 February.

Feb 20, 2020 23:38


Forging the Unbeaten Trail Towards Wangdue Nye

When you dedicate year 2020 to hike on unbeaten trails in Bhutan.

Jan 21, 2020 10:58

Make Your Own Personalised Stamps And Discover Bhutan’s Postal History At The Postal Museum

The Bhutan Postal Museum in Thimphu is also a major tourist attraction.

Jan 18, 2020 21:08


See Exquisite Garments On Display At The ‘Royal Robes - Wangchuck Dynasty’ Exhibition

The exhibition will remain open to the public until January 2021.

Feb 19, 2020 23:28

Nightlife in Bhutan

The nightlife is delaying the day by engaging with fun and recreational activities at owl hours. Thimphu Nightlife could fascinate you.

Feb 08, 2020 12:22

Subscribe to our newsletter

Never miss out on new happenings and news stories!

Download Daily Bhutan Mobile App

Connecting with us just got easier!