Carbon neutral policy in action: the case of Bhutan

Abstract

Climate policy across the world is proceeding at a highly variable pace, with some places very committed to decarbonizing their economies and others just beginning. Emerging nations are generally just starting along this journey. However, among the few nation states that have pledged to achieve carbon neutrality, is Bhutan, a least developed country. Carbon neutrality is an ambitious climate policy that is increasingly being recognized as necessary in order to stabilise global temperature rise at 1.5°C. However, Bhutan is likely to face significant challenges in maintaining this status as the country balances its desire to grow in economic opportunities (GDP) and in human happiness (GNH). Little research has been conducted inside the policy processes to better understand how Bhutan will maintain carbon neutrality. Through open-ended, semi-structured interviews with key stakeholders, this study provides an inside view on the current situation and future challenges that Bhutan may face, along with the complexities associated with implementing and maintaining an ambitious carbon neutral policy. The paper highlights Bhutan's story and how it could be useful for policy learning and knowledge sharing, especially in the context of emerging nations' climate governance. Key policy insights  The pro-environmental Constitution of Bhutan and its Gross National Happiness (GNH) strategy provide a unique institutional set up that enables ambitious climate policy innovation.  Bhutan's forests and hydropower provide resource advantages that support a carbon neutral pledge.  Bhutan's carbon neutral commitment could be tested and challenged by rural-urban migration.  Complacency towards future challenges in upholding carbon neutrality is apparent and could prevent the aggressive policy intervention that may be required.  Varying viewpoints are emerging that could hinder the formulation of appropriate policy measures.

Carbon Neutral Bhutan: sustaining carbon neutral status under growth pressures.

“…The modelling of Bhutan's future suggests it will need to develop a CN strategy that can avoid the structural path dependence and lock-in of carbon intensive infrastructure by enabling new CN technologies for simultaneous growth in GDP and GNH with reductions in GHG. Such changes should not be too di cult though concerted efforts may be required such as to identify potential barriers to deploy these options and seek access to nance [49]. Such development issues are central to the future planning of any emerging nation and this study shows that it is possible to maintain CN status under both low and high growth pressures.…”

Carbon Neutral Bhutan: Sustaining Carbon Neutral Status Under Growth Pressures.

“…This study therefore recommends Bhutan develops a CN strategy that can avoid the structural path dependence and lock-in of carbon intensive infrastructure by enabling new CN technologies for simultaneous growth in GDP and GNH with reductions in GHG. This will need the Bhutan government to identify potential barriers to deploy these options and seek access to nance [30]. Such development issues are central to the future planning of any emerging nation and this study shows that it is possible to maintain CN status under both low and high growth pressures.…”

What makes people act climate-friendly? A decision-making path model for designing effective climate change policies

“…These can be cross-sectoral policies that enable a new definition of the good life and prosperity, one that is not entirely based on economic indicators but instead moves towards a community-centered society "where prosperity is found in relations with others, and where status and well-being are derived from our skills and efforts to contribute positively to those communities" [29**]. Some governments have adopted new measures for well-being such as the Bhutan Gross National Happiness Index (an index that aims to balance four pillars including economic, social, environment and governance [51]) and New Zealand's Living Standards Framework (a Dashboard that goes beyond GDP to include well-being and sustainable development [52]). Such policies have the potential for a much more lasting climate impact but are also more difficult and slower to implement, since changing social and cultural values is not a quick fix.…”