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Launching Bhutan Climate Fund at COP28, Dubai, UAE
Published on: 28-Nov-2023

The Royal Government of Bhutan and the World Bank is launching Bhutan Climate Fund at COP28. A first of its kind, the Bhutan Climate Fund will aggregate and monetize Bhutan's high-integrity net negative GHG emissions at a fair price, reflecting the opportunity cost of Bhutan's remaining net negative.

This event will provide insights into the Bhutan experience developing this Fund, the functions of the Fund, and discuss lessons that could be extended to other economies, particularly countries with ambitious NDCs participating in carbon markets interested in country-level funds to manage and use proceeds from carbon revenues and corresponding adjustment in line with the government's vision. This event will follow the launch of Bhutan's National Carbon Registry another significant step in Bhutan's commitment to carbon markets with enhanced trust and transparency.

Bhutan is the world's first carbon-negative country and is committed to remaining carbon neutral, keeping its total emissions below the carbon removal capacity of its forests. The country's rivers generate low-carbon electricity, and in addition to its electricity consumption being entirely powered by renewable resources. Bhutan contributes to regional decarbonization by exporting run-of-river hydroelectricity. With an initial focus on the hydropower and forestry sectors, the Fund will build on the country's Kyoto Protocol experience, robust and transparent infrastructure systems, and strong political commitment, including the Carbon Market Rules approved in 2023.