BIOFIN Bhutan aims at combining processes to develop an integrated financing strategy to ensure a pro-poor sustainable financing of environment, biodiversity and climate change. The proposed integrated financing framework encompasses BIOFIN steps to analyse current policies, institutions and processes and building partnerships among sectors including public and private. The process will culminate into a green investment or resource mobilisation plan to provide a valuable entry point to link the new SDG prioritization and Bhutan’s National Five Year Plans with financing instruments.
Prioritised Finance Solutions
Payment for Ecosystem Services (discussions)
Impact Investments (identified)
The PIR included more than 40 Policy, Legal instruments, Strategies and Plans which indicates that there are both existing and innovative financing including several potential innovative financing approaches in the country. The PIR identifies potential to explore for impact Investment, considering Bhutan’s leadership in biodiversity conservation and mitigating climate change.
An Environmental Expenditure Review was carried out to include biodiversity and climate change including their contribution to poverty reduction. Preliminary results indicate that government spends about 5% of national budget annually for biodiversity (2.6%) and climate change (2.4%). Biodiversity expenditures contributed 43% to poverty reduction results.
FNA process has just begun with a preliminary costing framework which includes NBSAP targets and their linkages to SDGs and the 12th Five-Year Development Plan. Currently, discussions are underway with stakeholders to identify and prioritize NBSAP targets to be costed for medium-term and long-term results.
Preliminary works for BFP have begun with visioning of BIOFIN for Bhutan. The first product will be a BFP which will culminate into a green investment plan after having tested the financing solutions and linkages to climate costing are complete.
Finance solutions are only being identified. However, based on PIR ecotourism is already being tested as a finance solution.