A recent policy assessment has underscored the need for stronger integration of Sustainable Consumption and Production (SCP) strategies into Bhutan’s upcoming Nationally Determined Contribution (NDC 3.0), aligning with the priorities of the 13th Five Year Plan (FYP).
The study, “Integrating sustainable consumption and production (SCP) and climate change policy: A Strategic Contribution to Strengthening Bhutan’s NDC 3.0 and Long Term – Low Emission Development Strategy (LT-LEDS)”, finds that while the current NDC incorporates SCP-linked strategies across key sectors such as agriculture, industry, energy, and waste management, other priority areas including education and training, water management, and tourism remain underrepresented.
Similarly, sectors like forest conservation, human settlement, and surface transport—though central to the NDC—show limited alignment with SCP approaches, despite their potential to serve as critical enablers for circular economy practices.
“The integration of SCP into Bhutan’s climate strategy is not just an environmental necessity but also an economic opportunity,” the assessment notes. “It offers pathways to boost efficiency, reduce emissions, and build long-term resilience across multiple sectors.”
The report highlights several areas with strong potential for inclusion in NDC 3.0. Accounting for 95% of Bhutan’s industries, Cottage and Small Industries (CSI) are key drivers of innovation, rural employment, and poverty reduction. “CSIs are at the forefront of resource and energy efficiency,” the study states, adding that their contribution positions them as “a vital entry point for aligning SCP and NDC priorities.”
Contributing 7.88% of GDP in 2022, the construction sector is central to Bhutan’s economic development. Yet, as one policy analyst remarked, “Despite its significance and high emissions footprint, the construction sector has so far been overlooked in both SCP and NDC frameworks. This is a missed opportunity that NDC 3.0 can address.”
As the source of 14.67% of GDP and a major employer, agriculture and livestock sector remain crucial to food security and rural livelihoods. “Reducing food waste and strengthening value chains will be essential not only for climate goals but also for national food security,” the report emphasizes.
Beyond sectoral integration, the assessment stresses the importance of awareness creation and capacity building. Limited stakeholder understanding of SCP and NDC frameworks remains a key barrier. “Awareness and knowledge are still low. Building capacity across civil society, private sector, and education institutions will be critical to scaling adoption,” the report highlights.
The study also calls for greater private sector engagement, noting that while representatives are present; their role in shaping and implementing the NDC remains unclear. “Without clearly defining the private sector’s role, Bhutan risks losing out on the innovation and investment that businesses can bring to green value chains,” said an expert involved in the review.
Overall, the findings emphasize that a more comprehensive integration of SCP strategies across sectors will not only support Bhutan’s NDC ambitions but also reinforce the nation’s broader transition toward a sustainable, resilient, and low-carbon economy.
The Department of Environment and Climate Change (DoECC) under the Ministry of Energy and Natural Resources (MoENR), leads the preparation of the NDC 3.0 in collaboration with UNDP and other partners.
The NDC is the building block of the Paris Agreement, which was agreed at the 21st Conference of Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC). This agreement paved the way towards a bottom-up approach for a global agreement to solve world climate-change challenges and an opportunity to integrate national priorities with climate actions. All the parties are supposed to update their NDC progressively every five years in order to achieve the overall objectives of the Paris Agreement.
In 2025, all parties to the Paris Agreement are required to submit their third round of NDC (NDC 3.0), which must demonstrate increased climate ambitions guided by the Global Stocktake (GST) outcomes.
Tashi Namgyal
From Thimphu
