Bhutan Trust Fund sets ambitious $250 million portfolio for environmental sustainability by 2040
Last Updated on November 16, 2024 5:40 am
The Bhutan Trust Fund (BTF) unveiled its ‘Roadmap 2040’, outlining a strategic vision to expand its financial portfolio to USD 250 million by 2040.
Launched on the 69th Birth Anniversary of His Majesty the Fourth Druk Gyalpo on November 11, the BTF Roadmap 2040 is designed to address the evolving environmental challenges that Bhutan faces, while anticipating future demands on the nation’s ecosystems.
The Roadmap also highlights the importance of long-term investments in biodiversity conservation, as well as the necessity of building strategic partnerships with individuals, organisations, and governments that share a common vision for the future of nature.
The managing director of BTF, Karma Tshering, said that the Roadmap 2040 reflects their commitment and ambition for this and the coming decade. He said that disciplined investment management and timely decisions have fueled the growth of the Trust’s endowment, which increased from USD 21.3 million in 1992-98 to over USD 80 million today.
By 2040, BTF aims to expand its portfolio to include USD 200 million in endowment funds and USD 50 million in sinking funds, allowing for annual disbursements of up to USD 10 million.
These funds will be directed toward four key priority areas: safeguarding biodiversity, promoting human-wildlife coexistence, maintaining Bhutan’s carbon neutrality while adapting to climate change, and supporting green, climate-resilient development.
“Collectively, these efforts will help secure social well-being in Bhutan through environmental conservation,” Karma Tshering said.
BTF plans to diversify its funding sources, implement programme-related investments, increase donor engagement, and proactively secure grants. The Trust Fund will focus on the conservation of threatened species and genetic diversity, management of high-biodiversity areas, restoration of degraded lands, sustainable use of natural resources, control of alien invasive species, and conservation of native agro-biodiversity.
In addition, BTF will invest in projects using a holistic approach to conflict resolution, encompassing sectors like natural resources, livelihoods, economy, agriculture, education, technology, research, and health.
The Trust Fund is also committed to climate mitigation, adaptation, loss and damage, and climate finance. It aims to contribute to the Bhutan Climate Fund, which requires USD 50 million, and sees potential engagement in carbon finance.
Further investments will target renewable energy, construction, and waste management sectors, with a focus on research and capacity building to support piloting, innovation, and scaling of sustainable processes.
The Roadmap underscores Bhutan’s unique position as a biodiversity hotspot, situated within the Himalayan region, home to diverse ecosystems ranging from tropical lowlands to high-altitude alpine habitats. Bhutan is home to 27 mammal species and 20 avifauna species that are globally threatened, as well as at least 105 species of endemic plants.
Despite its status as one of the few carbon-negative countries in the world, Bhutan is vulnerable to the impacts of global climate and environmental change, including climate-induced disasters that threaten both its biodiversity and the well-being of its people.
The chairperson of BTF, Kesang Wangdi, said that amid emerging environmental challenges exacerbated by climate change, Roadmap 2040 aims to harness opportunities aligned with the royal vision of His Majesty the King for sustainable development in the pursuit of Gross National Happiness.
The Trust Fund plans to allocate funds through three funding windows: large grants, small grants, and programme-related investments. Large grants are capped at Nu 15 million (approximately USD 180,000), while small grants are capped at Nu 400,000 (approximately USD 4,800). The amount for programme-related investments will vary based on the needs of individual projects.
Since its establishment, the Bhutan Trust Fund has disbursed over USD 35 million in grants, funding 277 projects aimed at protecting the country’s natural heritage.