Bhutan Country Profile

Royal Society for Protection of Nature

Population: 787 Thousand

Major Threats: Earthquakes, Windstorms, Forest or Structural Fires, Landslides, Flash Floods, Glacial Lake Outburst Floods (GLOFs), Outbreaks of Pests, Epidemics, Drought

Populations Affected: Rural and Urban Communities

Locations Affected: Wangduephodrang, Punakha Dzongkhags, Thimphu, Laya, Lungo, Phuentsholing, Pasakha

Industries Affected: Agriculture, Forestry, Hydroelectric Power, Infrastructure

Compounding Issues: Water shortages, Air pollution, Education, Renewable Energy, Biodiversity, Health, Disaster Risk Reduction

World Risk Index Ranking: 176

Global Climate Risk Index: 105 (2021)

Bhutan, a landlocked nation nestled in the eastern Himalayas of south-central Asia, has undergone a significant transformation in the latter half of the 20th century, transitioning from its historical isolation to a more connected and dynamic state. Improved transportation, notably a faster route from the Indian border to its capital, Thimphu, and political reforms initiated by King Jigme Dorji Wangchuk, have marked these changes. The shift away from an absolute monarchy in the 1990s culminated in the establishment of multiparty parliamentary democracy in 2008. Geopolitically, Bhutan holds a strategic position, situated between the Indian Assam-Bengal Plain to the south and the Tibetan Plateau to the north.

Bhutan’s geography gives rise to a diverse climate, with three primary climatic regions defined by elevation. From the hot and humid subtropical Duars Plain to the cooler Lesser Himalayas and the alpine tundra of the Great Himalayas, the country experiences striking meteorological variations. The central mountain valleys enjoy a temperate climate. Bhutan is also vulnerable to natural disasters such as earthquakes, floods, glacial lake outburst floods, landslides, and forest fires.

According to the UN World Risk Index, Asia holds the second highest position. When considering the individual components of the model, Asia also ranks second and surpasses global medians in each aspect, except for adaptive capacities. Bhutan, however, falls into the lowest risk category and performs exceptionally well in these components, along with Uzbekistan, Brunei Darussalam, Turkmenistan, Qatar, the Maldives, Bahrain, and Singapore. The Royal Government of Bhutan has made substantial progress in disaster risk reduction, establishing the National Disaster Management Authority and Disaster Management Committees in all 20 districts, along with Disaster Management Contingency Plans. Given the heightened risk of natural hazards, capacity building, enhanced data systems, and heightened awareness are paramount to safeguarding Bhutan and its people from potential disasters.

Bhutan, one of the world’s smallest yet fastest-growing economies, achieved an average annual economic growth rate of 7.5% between 2006 and 2015, ranking 13th out of 118 countries. This growth outpaced the global average of 4.4%. This remarkable economic progress benefited a majority of Bhutanese citizens, with extreme poverty plummeting from 25% in 2003 to just 2% in 2012, as measured by the international poverty line of $1.90 a day (purchasing power parity). These poverty reduction results compare favorably with South Asia’s regional poverty rate of 19%. Bhutan also made significant strides in providing basic services such as healthcare, education, and asset ownership.

Bhutan’s recent economic developments, including robust lending growth, stable inflation, exchange rates, and substantial international reserves, indicate continued solid and stable growth in the first half of 2017. The country’s gross international reserves exceeded $1 billion, equivalent to 10 months of imports of goods and services by mid-2017. This substantial reserve level aligns with the minimum requirements outlined in Bhutan’s 2008 Constitution. Moreover, Bhutan’s currency, the ngultrum, which is pegged to the Indian rupee, remained stable and even appreciated slightly against the U.S. dollar. Despite these achievements, Bhutan must vigilantly monitor its development due to various challenges.

In addition to potential delays in hydropower construction, Bhutan faces three other downside risks to its growth: budgetary challenges due to increasing expenditures and delays in revenue from hydropower projects, disruptions in trade caused by India’s Goods and Services Tax (GST), and vulnerability to natural disasters like floods and landslides, which can reduce electricity generation and negatively impact the economy.

Bhutan faces significant vulnerability to climate change due to its status as a landlocked, least-developed country with a fragile mountainous environment, substantial reliance on agriculture, and a vital hydropower sector. The nation confronts various climate hazards and extreme events, including flash floods, glacial lake outburst floods (GLOF), windstorms, forest fires, and landslides. While global warming is primarily attributed to human activities, Bhutan acts as a net sink of greenhouse gases due to its extensive forests. Nonetheless, emissions within Bhutan have increased in line with socio-economic development, though they remain within the capacity of the country’s forests.

Bhutan’s vulnerability to climate change is evident across key sectors, including water resources, agriculture, human health, energy (hydropower), forests, biodiversity, and natural disasters. Rapid glacier melting and the risk of GLOF events are major concerns. As temperatures rise, Bhutan anticipates northward migration of its forests and increased moisture stress in cloud forests, posing habitat loss risks for plant and bird species. Water resources are threatened by glacial retreat, glacial lake outburst floods, and reduced water availability. Climate change’s impact on air quality could worsen respiratory disorders and ozone concentrations. Additionally, climate-related wildfires may lead to air pollution, and changes in aeroallergens may affect pollen seasons. Land use changes driven by climate change may intensify soil erosion, floods, and landslides, ultimately impacting food and water supplies, livelihoods, and adaptive capacity.