Proposed Activities 1 (alternative renewable energy program) and 2 (Sustainable Hydropower Policy) are designed to accelerate Bhutan’s progress on SDG Target 8.2 by diversifying its energy portfolio and upgrading its key economic sectors. Activity 1 expands the energy mix to include mini hydro, solar, wind, and waste-to-energy technologies, reducing reliance on large-scale hydropower while enabling high-value innovation in renewables. Activity 2 supports the long-term optimization of hydropower through reservoir and pumped storage schemes, alongside emerging technologies like hydrogen fuel and green ammonia, enhancing value-chain resilience and productivity. These efforts align with Bhutan’s 13th Five-Year Plan, the Climate Change Policy, and the MoEA’s push for green private-sector development under the “10X” GDP vision.

These activities also advance SDGs 3, 8, 9, 10, 11, and 16. Under SDG 3, Activity 1’s waste-to-energy technologies improve waste management and reduce indoor air pollution from traditional fuels, enhancing respiratory health in rural areas. For SDG 8, the expansion of diverse green energy sectors—such as solar, wind, and hydrogen—creates skilled jobs beyond construction-phase hydropower, supporting economic inclusion and aligning with MoLHR’s labor productivity and youth employment agenda. Regarding SDG 9, both activities promote infrastructure modernization and clean innovation, enabling energy-intensive industries like data centers and supporting Bhutan’s low-emission industrial transition. For SDG 10, greater access to clean, locally generated energy reduces health burdens and time poverty, particularly for rural women, advancing equitable development. Under SDG 11, the transition to clean energy and electric mobility improves urban air quality, resource efficiency, and climate resilience, exemplified by sustainable urban development efforts like the Gelephu Mindfulness City. Lastly, SDG 16 is reinforced through inclusive, transparent governance tools—such as the GNH Policy Screening Tool and Strategic Environmental Assessments (SEAs)—alongside institutional capacity-building supported by the World Bank CPF.

Priority NDC Activities

NDC synergies with the priority SDGs

Proposed Activities 1 (domestic biogas production), 2 (electrification of cooking and heating), and 3 (mass transit systems) directly support Bhutan’s ambition under the principles of GNH to decouple economic growth from environmental degradation, by improving resource efficiency across livestock, human settlements, and transport. Activity 1 promotes small-scale biogas units that convert animal waste into energy and fertilizer, supporting circular economy models and reducing deforestation and fertilizer dependency. Activity 2 leverages Bhutan’s nearly 100% hydropower grid to replace LPG and firewood with clean electricity in households, cutting GHG emissions and reducing reliance on imported fossil fuels. Activity 3 improves urban mobility through expanded bus systems and light rail, decreasing fuel consumption and supporting low-emission transport aligned with the country’s LED strategies. These efforts advance Bhutan’s carbon-neutrality commitment and align with the Climate Change Policy, National Energy Efficiency and Conservation Policy (2019), and SDG7 Roadmap.

These activities also generate co-benefits for SDGs 3, 8, 9, 10, 11, and 16. Under SDG 3, reduced indoor air pollution from clean cooking and heating technologies improves respiratory health, especially for women. For SDG 8, these shifts support rural livelihoods, increase labor productivity, and improve access to economic opportunities via mass transit. For SDG 9, biogas and EV infrastructure strengthen decentralized energy systems and promote clean technology adoption. Under SDG 10, these interventions reduce spatial and gender disparities by improving access to energy and transport in underserved areas. Activity 1 also enhances urban and rural sustainability by improving organic waste management and reducing emissions from the agriculture and livestock sector, supporting SDG 11 through cleaner, more efficient resource use in human settlements. Finally, for SDG 16, implementation is grounded in Bhutan’s whole-of-government coordination, participatory policy tools like SEAs, and institutional reforms outlined in the “10X” roadmap and supported by the World Bank CPF.

Priority NDC Activities

NDC synergies with the priority SDGs

Proposed Activities 1 (efficient street lighting), 2 (energy-efficient and green building design), and 3 (renewable charcoal and cement blending) directly advance SDG 9.4 by promoting sustainable infrastructure upgrades, industrial retrofitting, and increased resource-use efficiency. Activities 1 and 2, under the LEDS for Human Settlement, focus on upgrading municipal services and buildings through energy-efficient lighting and sustainable construction standards. These measures reduce electricity demand and introduce cleaner technologies aligned with Bhutan’s National Energy Efficiency & Conservation Policy (2019) and voluntary Bhutan Green Building Guidelines. Activity 3, from the LEDS for Industries, targets major industrial emissions sources by replacing fossil reductants with renewable charcoal in ferroalloy production and using blended cement to reduce clinker content—modernizing industrial processes and reducing GHG emissions. These actions reflect Bhutan’s policy commitment to low-emission development and sustainable industrial transformation, as set out in the 13th Five-Year Plan and the “10X” vision.

Together, these activities contribute to SDGs 3, 8, 9, 10, 11, and 16. For SDG 3, cleaner energy use and reduced industrial emissions improve both outdoor and indoor air quality, supporting respiratory health and broader public well-being. Under SDG 8, investments in green building, efficient lighting, and low-emission manufacturing spur job creation and technological upskilling across construction, design, and industrial sectors. For SDG 9, the adoption of renewable charcoal, cement blending, and energy-efficient infrastructure catalyses innovation in materials and industrial processes, aligning with Bhutan’s transition to a low-carbon economy. Under SDG 10, access to clean infrastructure and reduced exposure to pollution foster more equitable environments, particularly for vulnerable populations living near urban or industrial zones. For SDG 11, sustainable lighting and green building practices directly enhance the liveability, energy efficiency, and resilience of Bhutan’s cities and human settlements. Finally, under SDG 16, successful implementation depends on effective coordination, participatory governance, and institutional capacity—principles embedded in Bhutan’s Climate Change Policy and operationalized through cross-sectoral mechanisms like the LEDS and Five-Year Plans.

Priority NDC Activities

NDC synergies with the priority SDGs