Yangyel Lhaden

Bhutan has secured six million Pound Sterling from the Least Developed Countries Initiative for Effective Adaptation and Resilience (LIFE-AR) to enhance local communities’ resilience to climate change impacts and implement climate-resilient adaptation measures.

LIFE-AR is a unique initiative led by Least Developed Countries (LDCs) for LDCs, serving as a key vehicle for achieving the LDC 2050 Vision.

This vision aims for climate-resilient development pathways by 2030 and net zero emissions by 2050, ensuring that societies, economies, and ecosystems thrive.

Starting next year and spanning three years, the initiative will be implemented in six districts—Gasa, Punakha, Trashiyangtse, Mongar, Samtse, and Chukha—selected for their heightened vulnerability to climate change compared to other districts.

What makes LIFE-AR different?

The LIFE-AR focal point, Rinchen Penjor, said that the government would not dictate how the funds are used.

“The decision must come from the local communities themselves. They need to come together and propose community-led adaptation measures on adaptation and building resilience actions,”he said.

Funds will be allocated to gewog offices for implementation, prioritising community-generated intervention measures.

“Climate change affects everyone and this project aims to directly benefit communities most impacted by climate change,” he said.

Rinchen Penjor said that the financing and action plans from LIFE-AR would address key areas for mitigating climate-induced impacts, including water security, implementing climate-smart agriculture, livestock rearing, and food security.

Why is climate financing important for Bhutan?

Bhutan has experienced an increasing frequency of extreme weather events exacerbated by climate change, escalating from six incidents in 2019 to a peak of 12 in 2021. As of August 31, 2024, 10 major incidents have been recorded, according to the National Centre for Hydrology and Meteorology.

To address climate-related disasters, Bhutan requires approximately USD 0.385 billion for adaptation and USD 0.6 billion for mitigation initiatives in the short term, as outlined in the Nationally Determined Contribution report.

While Bhutan has accessed various climate financing sources, the process could be cumbersome, making the LIFE-AR funding particularly significant.

“Although Bhutan graduated from LDC last year we are still able to access the LIFE-AR fund because we are still eligible for the fund until the project deliverables and benefits are not reached to us,” Rinchen Penjor said.

The board paper outlining LIFE-AR initiatives on Bhutan was presented to the Global  Governing Board (GGB) of LIFE-AR in July this year and was granted conditional approval of the Test and Evolve Phase by the global governing board of LIFE-AR on July 11, 2024 after successfully completing the Establishment Phase.

Bhutan is one of the front-runner countries in LIFE-AR’s inaugural cohort 2020, alongside Burkina Faso, Ethiopia, The Gambia, Malawi, and Uganda, aiming to transform how climate finance for adaptation is accessed, managed, and targeted.

The Interim Secretariat of LIFE-AR is the International Institute for Environment and Development in the United Kingdom (UK).

The initiative is supported by the sovereign countries called development partners namely, the United Kingdom, the United States of America, Austria, Canada, Denmark, Finland, Germany, Italy, Ireland, Norway, and Sweden.

The UK’s Foreign, Commonwealth and Development Office has committed 13.8 million Pound Sterling to LIFE-AR, and remains the largest donor. The UK also fills a position on the GGB of LIFE-AR and the Technical Working Group.