Bhutan is using its carbon-negative status to explore international carbon markets to fight climate change and create new economic opportunities. A three-day Bhutan–Singapore capacity-building workshop in Thimphu is helping project developers and investors learn how to start carbon credit projects in the country. Carbon credits allow governments and companies to make up for the pollution they produce by supporting climate-friendly projects in countries like Bhutan.
Bhutan currently absorbs about 10 million tonnes more carbon dioxide than it produces every year. This means the country removes more pollution from the air than it creates. This puts the country in a good position to help fight climate change while earning money through carbon credit projects.
“Bhutan is well positioned to participate in the international carbon markets supported by the carbon negative status, strong environmental governance and the establishment of an upfront and transparent carbon credit framework and carbon registry. With our commitment is an inaugural workshop organised in collaboration with DECC, which marks the start of continuous capacity building and deeper Bhutan-Singapore cooperation under Article 6,” said Bee Lay Tan, Impact Partner, Terrama.
A carbon credit is like a reward for reducing pollution. If a country or company produces a lot of pollution, they can pay for projects that reduce pollution somewhere else, such as planting trees or using clean energy. In return, they receive carbon credits to balance the pollution they produce. For instance, companies that produce pollution can pay Bhutan to protect forests or run clean projects that reduce pollution, allowing Bhutan to earn money while helping the environment.
With strong global demand for carbon credits, Bhutan has identified nine areas where projects can be developed, including energy, forestry, and livestock.
However, only four project applications have been submitted so far, covering clean cooking stoves, biogas, biofertiliser production and space heating.
The three-day capacity-building programme aims to give investors and project developers an opportunity to explore and understand the rules for carbon projects.
“In the last two days of the conference, Bhutan’s ecosystem has demonstrated the eagerness to learn from the experts, but at the end, it is the Bhutanese ecosystem itself who have to take ownership, while the foreign investor can only be of help,” said Tan Chin Hwee, Chairman, Climate Bridge International, Singapore.
“This workshop came at a perfect time for us. Mountain Hazelnuts is at the starting line of our carbon journey, and the primary goal for us to join this training is to provide our grower partners with additional income from the carbon credit generated through planting trees,” said Tshering Yangzom Kinlay, Environmental and Social Impact Manager, Mountain Hazelnuts.
“The Department of Environment and Climate Change have clearly shared what policies are there and what the procedures are. Moreover, experts from Singapore, such as, GenZero and Carbon Bridge, have shared how to do the works and how it will benefit the country,” said Tashi Wangchuk (PhD), Founding Partner, Green Dragon Energy.
With climate risks increasing, experts say carbon credits remain an opportunity Bhutan has yet to fully use.
Kelzang Chhophyel
Edited by Sonam Pem
