In a bid to safeguard its rich biodiversity while driving long-term economic growth, Bhutan is exploring sustainable financing mechanisms to strengthen conservation efforts. Conservationists, policymakers, and development partners gathered recently to discuss innovative funding models that could secure consistent financial support for protected areas while delivering economic returns.
Sonam Wangdi, Chief of the Nature Conservation Division under the Ministry of Energy and Natural Resources (MoENR), emphasized that sustainable financing is not just essential for conservation, but also critical for economic resilience.
“Our economic stability is closely tied to ecosystem health. Sustainable financing mechanisms help us protect our natural heritage by supporting conservation-friendly business models that align with Bhutan’s 10x economic vision,” he said.
He underscored the need to view nature as an economic asset rather than a cost. While Bhutan already benefits from initiatives such as the Sustainable Development Fee (SDF), the Bhutan Trust Fund for Environmental Conservation, Bhutan for Life, and ecosystem services payments, the country is now working on new models through a pilot roadmap for nature-based tourism.
The sustainable financial model includes specific financing plans for protected areas like Jigme Singye Wangchuck National Park (JSWNP) and innovative mechanisms such as Tiger Impact Certificates and wildlife tourism ventures. These approaches aim to make conservation economically viable for local communities.
“Conservation becomes part of the development equation when it is backed by sustainable financing that benefits both biodiversity and the economy,” Sonam Wangdi said.
JSWNP, home to about 5,500 residents in 600 households, faces mounting pressures from overgrazing, forest extraction, wildfires, poaching, and development. Maya Bankova, Tiger Conservation Coalition (TCC), noted that the park currently has an annual funding gap of USD 335,000 and relies heavily on government and donor support.
She outlined three priority financing options—carbon credits, debt-for-nature swaps, and user fees—that could generate up to USD 113 million annually if implemented effectively.
“These strategies can help bridge the financial gap while promoting sustainable development,” Bankova said. “By involving local communities in conservation efforts, the park can boost its ecological integrity, improve livelihoods, and contribute to national economic growth.”
Similarly, Thomas Gray from the Tigers Alive Initiative (TAI), WWF, highlighted Bhutan’s potential to issue Tiger Impact Certificates. He said Bhutan’s strong conservation baseline, robust monitoring systems, and governance framework position the country as a leader in linking biodiversity protection with nature-based investment.
“These certificates can add value to tourism investments and protect the ecosystems that underpin tourism,” Gray said, adding that such efforts could enhance market credibility and attract responsible investors.
To further explore these possibilities, the Ministry of Energy and Natural Resources and WWF-Bhutan hosted a national consultation workshop on wildlife and nature-based tourism in Thimphu. The event brought together senior officials and stakeholders including MoENR Secretary Karma Tshering, Department of Forest and Park Services (DoFPS) Director Karma Tenzin, WWF-Bhutan Country Director Chimi Rinzin, and representatives from Bhutan for Life, the National Land Commission Secretariat, the private sector, and conservation coalitions.
The workshop focused on key themes such as policy readiness, governance structures, and enabling frameworks—especially tourism concessions that involve and benefit local communities.
WWF-Bhutan’s Chimi Rinzin emphasized the need for a new conservation business model that directly rewards grassroots efforts.
“While tourism plays a vital role in our economy, the current model often overlooks those on the ground protecting our ecosystems,” he said.
Damcho Rinzin, Director of the Department of Tourism, echoed this sentiment. “With support from WWF and our partners, we can redefine conservation financing. ‘Banking on Protected Areas’ is a model that links tourism revenue directly to conservation outcomes, ensuring income for communities and preserving Bhutan’s natural legacy.”
A follow-up consultation is planned for May 2025 with continued support from WWF-US to further develop and refine these sustainable financing initiatives.
Nidup Lhamo from Thimphu
