Thimphu : The World Bank has approved USD 34.5 million in financing for Bhutan, aimed at boosting employment and value addition within the agriculture, livestock, and forestry sectors under the new ‘Accelerating Bhutan’s Job Transformation through Renewable Natural Resource Value Chains’ Project on June 14.
These sectors, which are key drivers of Bhutan’s green economy, will benefit approximately 42,000 people, 65 percent of whom are women.
The project will support the government’s efforts to transform the renewable natural resource sector from subsistence to a modern, market-oriented system. It aims to create 12,000 full-time jobs by improving market access and trade, strengthening sustainable agricultural production, providing organisational support and grants to beneficiaries, and enhancing market exploration capacity, quality infrastructure, and service delivery.
“This project will help unlock Bhutan’s green economic potential by transforming rural livelihoods through climate-smart practices, better market access, and value chain development. By connecting small producers with markets, fostering innovations, and boosting women and youth participation, Bhutan can create more and better jobs in a sustainable and inclusive way,” Acting World Bank Country Director for Bhutan, Cecile Fruman said. “The project will drive economic growth and enhance Bhutan’s competitiveness in both domestic and export markets, while ensuring environmental sustainability and carbon neutrality.”
The project plans to invest in high-potential value chains, including dairy, citrus, potato, and emerging forest-based industries. It will help smallholder farmers adopt climate-smart practices, access better post-harvest technologies, and ensure they meet the trade requirements for export.
To specifically support women, who comprise the majority of Bhutan’s rural workforce, the project will provide labour-saving equipment to ease their workloads and encourage greater participation in formal value chains.
The World Bank’s Economist and Task Team Leader of the project, Joachim Vandercasteelen said, “The project will foster productive partnerships between producers and market actors through matching grants and targeted business development support. Special focus will be placed on women- and youth-led enterprises, who are leading the reallocation of jobs from the farm towards services such as processing and marketing that add value.”
He added that the project will also strengthen the capacity of key government agencies to improve the business environment and engage the private sector. This will be achieved by enhancing food safety and quality services, agricultural extension, and market information.
By reducing food loss, increasing the adoption of climate-smart agriculture, and promoting value addition, the project is expected to support long-term carbon mitigation and climate adaptation. Over a 20-year period, it is projected to mitigate approximately 221,087 tons of CO₂ equivalent, contributing to both economic and environmental sustainability.
The financing package comprises USD 29.8 million in International Development Association financing and a USD 4.7 million PROGREEN grant.
This project builds on the strong partnership between the World Bank, which has supported Bhutan since 1981, and reflects its commitment to inclusive and climate-resilient development in the country.
