{"id":20293,"date":"2023-11-17T16:27:16","date_gmt":"2023-11-17T08:27:16","guid":{"rendered":"http:\/\/sar-climate.adpc.net\/?p=20293"},"modified":"2023-11-28T15:02:07","modified_gmt":"2023-11-28T07:02:07","slug":"of-dragons-data-and-clouds-bhutans-journey-into-carbon-markets-technology-and-a-resilient-future","status":"publish","type":"post","link":"https:\/\/sar-climate.adpc.net\/index.php\/2023\/11\/17\/of-dragons-data-and-clouds-bhutans-journey-into-carbon-markets-technology-and-a-resilient-future\/","title":{"rendered":"Of Dragons, Data and Clouds: Bhutan\u2019s Journey into Carbon Markets, Technology, and a Resilient Future"},"content":{"rendered":"<div class='booster-block booster-read-block'>\n                <div class=\"twp-read-time\">\n                \t<i class=\"booster-icon twp-clock\"><\/i> <span>Read Time:<\/span>6 Minute, 39 Second                <\/div>\n\n            <\/div><p>[vc_row][vc_column][vc_column_text]<em><a style=\"text-align: left; font-size: 15px; color: #000000; line-height: 28px; text-decoration: none;\">The blog was first published by World Bank Blogs on 19 October 2023. <\/a><\/em><\/p>\n<p><em><a style=\"text-align: left; font-size: 15px; color: #000000; line-height: 28px; text-decoration: none;\" href=\"https:\/\/blogs.worldbank.org\/climatechange\/dragons-data-and-clouds-bhutans-journey-carbon-markets-technology-and-resilient\">Read the original blog <span style=\"color: #3366ff;\"><strong>here<\/strong><\/span>.<\/a><\/em>[\/vc_column_text][vc_column_text]<\/p>\n<figure id=\"attachment_20295\" aria-describedby=\"caption-attachment-20295\" style=\"width: 1140px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-20295 size-full lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/sar-climate.adpc.net\/wp-content\/uploads\/2023\/11\/Bhutan-Climate-Blog.png\" alt=\"\" width=\"1140\" height=\"500\" \/><figcaption id=\"caption-attachment-20295\" class=\"wp-caption-text\"><noscript><img decoding=\"async\" class=\"wp-image-20295 size-full lazyload\" src=\"https:\/\/sar-climate.adpc.net\/wp-content\/uploads\/2023\/11\/Bhutan-Climate-Blog.png\" alt=\"\" width=\"1140\" height=\"500\" \/><\/noscript> Paro Taktsang, Bhutan. Photo: World Bank<\/figcaption><\/figure>\n<p>[\/vc_column_text][vc_column_text]<a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Nestled within the Eastern Himalayas, Bhutan is often referred to as the \u2018Land of the Thunder Dragon\u2019. This evocative name, steeped in mythology and reverence, perfectly captures the spirit of a nation where tradition, nature, and mindfulness converge harmoniously.<\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Bhutan is the world\u2019s first carbon-negative country; its vast forests absorb more carbon dioxide (CO2) than the country emits from all activities. This accomplishment stems from Bhutan\u2019s holistic approach to development. <\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Its Gross National Happiness (GNH) index goes beyond traditional economic measurements, placing importance on the spiritual, physical, and social well-being of its citizens alongside cultural and environmental conservation. The country\u2019s constitution mandates that at least 60% of its land remains forested for generations to come, naturally enhancing carbon sequestration.<\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">The Kingdom is enveloped by abundant forests, which in fact stretch across 72.3% of its land. These areas represent not just ecological and biodiversity reserves but also massive carbon assets, making its forests a significant \u201ccarbon bank.\u201d <\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Further, the country\u2019s rivers generate low-carbon hydroelectricity for neighbouring countries, thereby reducing regional emissions. In 2021, Bhutan generated nearly 11,000 GWh of electricity and exported over 80% of it. <\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Bhutan\u2019s Nationally Determined Contributions (NDCs) note the possibility of offsetting 22.4 million tonnes of CO2 emissions in the region by 2025 through the export of hydroelectricity.<\/a>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; text-align: center; line-height: 72px; font-color: #0b6603;\"><span style=\"color: #c6a024;\"><b><i class=\"fa fa-quote-left\" aria-hidden=\"true\">\u00a0<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: center;\"><span style=\"color: #c6a024;\"><b><i>The Kingdom is enveloped by abundant forests, which stretch across 72.3% of its land. These areas represent not just ecological and biodiversity reserves but also massive carbon assets, making its forests a significant &#8216;carbon bank.<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<figure id=\"attachment_20300\" aria-describedby=\"caption-attachment-20300\" style=\"width: 982px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-20300 size-full lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/sar-climate.adpc.net\/wp-content\/uploads\/2023\/11\/Figure-1-Bhutan.png\" alt=\"\" width=\"982\" height=\"663\" \/><figcaption id=\"caption-attachment-20300\" class=\"wp-caption-text\"><noscript><img decoding=\"async\" class=\"wp-image-20300 size-full lazyload\" src=\"https:\/\/sar-climate.adpc.net\/wp-content\/uploads\/2023\/11\/Figure-1-Bhutan.png\" alt=\"\" width=\"982\" height=\"663\" \/><\/noscript> Fig. 1 &#8211; Trends of GHG emissions and carbon sink balance from 1994 to 2015 in Gg of CO2e. Source: Third National Communication from Bhutan to the UNFCCC<\/figcaption><\/figure>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: left;\"><span style=\"color: #0b6603;\"><b><i>Emerging technologies to quantify carbon assets<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">While deeply rooted in tradition and natural heritage, Bhutan is embracing a global wave of technology and innovation to create more accurate, efficient, secure, and transparent carbon markets. <\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Article 6 of the Paris Agreement allows countries to voluntarily cooperate with each other to implement their NDCs. Bhutan could monetize its emission reductions from various sectors such as renewable energy and forestry, channeling climate finance to the country.<\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">In July, the FAB23 &#8220;Designing Resilient Futures&#8221; international conference in Thimphu brought together the World Bank\u2019s Climate Warehouse, Druk Holdings Investment Ltd. (DHI), the Bhutan Ministry of Environment and AirCarbon Exchange. They discussed the crucial role of emerging technologies in assessing and managing the country\u2019s carbon assets. <\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">This dialogue accentuated the synergy between a resilient future, technology, and natural capital accounting in crafting a future-ready and environmentally conscious Kingdom.<\/a><\/p>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Technological advancements in Measurement, Reporting and Verification (MRV) systems \u2013 the process to measure GHG emissions reductions \u2013 enable carbon assets to be assessed with unprecedented accuracy and speed. Information from satellites, drones, and on-the-ground sensors and meters create a comprehensive picture of the forest landscape and hydropower sector:<\/a><\/p>\n<ul>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Satellite remote sensing<\/strong> scans vast tracts of land, conducts temporal monitoring changes in forest cover over time, and assesses vegetation types and stages of forest growth.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Drones (UAVs)<\/strong> capture detailed images of forest canopy and create three-dimensional maps of forests to estimate volume of biomass, and, by extension, the carbon stored.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Ground-based sensors, smart-meters and Internet-of-Things<\/strong> provide real-time data, tracking parameters like tree growth rates, soil moisture, temperature and other variables related to forest and reservoir health, resilience, energy generation and water quality in dam sites.<\/a><\/li>\n<\/ul>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Enhanced data allow for more precise carbon storage or reduction estimates. Machine learning and artificial intelligence help analyze large data sets to identify patterns and trends. These advancements will enable the country to fully utilize its forests as both carbon sinks and renewable energy sources while accurately tracking carbon assets. <\/a>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; text-align: center; line-height: 72px; font-color: #0b6603;\"><span style=\"color: #c6a024;\"><b><i class=\"fa fa-quote-left\" aria-hidden=\"true\">\u00a0<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: center;\"><span style=\"color: #c6a024;\"><b><i>While deeply rooted in tradition and natural heritage, Bhutan is embracing a global wave of technology and innovation to create more accurate, efficient, secure, and transparent carbon markets.<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: left;\"><span style=\"color: #0b6603;\"><b><i>Infrastructure to track and trade carbon assets<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Additional infrastructure is needed to support tracking, issuance, and trade of carbon assets. Bhutan and other countries can participate in domestic and international carbon markets with infrastructure including:<\/a><\/p>\n<ul>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>National GHG inventory<\/strong> \u2013 to track a country\u2019s carbon emissions and removals, and its global impact, and to monitor its emission sources and types. The inventory categorizes emissions and removal by sector, and updates regularly with new data.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>National carbon registry<\/strong> \u2013 to help countries track and record carbon credits and offsets, manage their carbon footprint, monitor compliance with the Paris Agreement and domestic climate policies, and facilitate the trading of carbon credits or allowances.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Tokenization mechanism<\/strong> \u2013 to create digital representations of carbon credits that can be stored and traded through a credentialed wallet system using distributed ledger technology (DLT). The objective of this mechanism revolves around improving the efficiency, transparency, and accessibility of carbon markets. It also provides an opportunity to make carbon asset management more tangible and participatory for Bhutan\u2019s citizens by potentially integrating it with the national digital identity (NDI), which can streamline services and boost security.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Integration of the national registry with the global metadata layer Climate Action Data Trust (CAD Trust)<\/strong> \u2013 to connect with registries across the world, and aggregate and harmonize carbon project and units data with the objective to enhance transparency and trust in international carbon markets.<\/a><\/li>\n<\/ul>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">The World Bank is currently engaged in all of the above components, together with the Partnership for Market Implementation (PMI) and Digital for Climate (D4C), to support developing countries to harness the potential of carbon markets and facilitate access to climate finance.<\/a>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; text-align: center; line-height: 72px; font-color: #0b6603;\"><span style=\"color: #c6a024;\"><b><i class=\"fa fa-quote-left\" aria-hidden=\"true\">\u00a0<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: center;\"><span style=\"color: #c6a024;\"><b><i>Infrastructure is needed to support the tracking, issuance, and trading of carbon assets.<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"font-size: 34px; line-height: 48px; text-align: left;\"><span style=\"color: #0b6603;\"><b><i>Towards a mindful and equitable carbon strategy in Bhutan<\/i><\/b><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">Bhutan champions sustainable development, levering its carbon-neutral status to innovate in carbon markets and prioritize eco-friendly technological advancements:<\/a><\/p>\n<ul>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Mindful approach to technology and innovation<\/strong> \u2013 Bhutan&#8217;s commitment to the GNH index instead of just GDP exemplifies its holistic vision of evaluating innovation\u2019s impact on its citizens\u2019 well-being, cultural preservation, and environmental sustainability. <\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Leveraging carbon assets<\/strong> \u2013 Bhutan has turned commitment to environmental conservation into a valuable asset. Through strategic management of its primary carbon sinks, Bhutan not only emphasizes its ecological responsibilities but also establishes itself as a forerunner in the international carbon trading arena.<\/a><\/li>\n<li><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\"><strong>Integrating sustainable technology \u2013<\/strong> From harnessing clean energy sources like hydropower to promoting eco-friendly agricultural practices, technology is seen as a tool to enhance sustainable practices, not replace them.<\/a><\/li>\n<\/ul>\n<p><a style=\"text-align: left; font-size: 20px; color: #000000; line-height: 28px; text-decoration: none;\">In the Land of the Thunder Dragon, where clouds embrace dense forests and traditions intertwine with the future, Bhutan&#8217;s aspirations soar higher than ever, harnessing the strength of its carbon assets to be a leader in the battle against climate change.<\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_column_text][\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<\/p>\n<p style=\"font-size: 16px; text-align: left;\"><i>Gemma Torras Vives is a Climate &amp; Technology Specialist, Climate Change Group at World Bank; <\/i><em>Sonam Tashi is <\/em><em>Chief Planning Officer for the Ministry of Energy and Natural Resources, Bhutan and; Jigdrel Singay<br \/>\nis an Analyst at Druk Holding &amp; Investments (DHI), Bhutan.<\/em><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n        <div class=\"booster-block booster-reactions-block\">\n            <div class=\"twp-reactions-icons\">\n                \n                <div class=\"twp-reacts-wrap\">\n                    <a react-data=\"be-react-1\" post-id=\"20293\" class=\"be-face-icons un-reacted\" href=\"javascript:void(0)\">\n                        <img decoding=\"async\" class=\"lazyload\" 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2023. Read the original blog here.[\/vc_column_text][vc_column_text] [\/vc_column_text][vc_column_text]Nestled within the Eastern Himalayas, Bhutan is often referred to as the \u2018Land of the Thunder Dragon\u2019. This evocative name, steeped in mythology and reverence, perfectly captures the spirit of a nation where tradition, nature, and mindfulness [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":20306,"comment_status":"closed","ping_status":"open","sticky":false,"template":"post-template-fullwidth-1.php","format":"standard","meta":{"footnotes":""},"categories":[368,4],"tags":[247],"class_list":["post-20293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bhutan","category-news","tag-blog","eq-blocks"],"gutentor_comment":0,"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bhutan\u2019s journey into carbon markets and a resilient future - SAR-CLIMATE<\/title>\n<meta name=\"description\" content=\"Explore Bhutan&#039;s journey into carbon markets, technology, and a resilient future in the world&#039;s first carbon-negative country\" \/>\n<meta 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