Bhutan

“Bhutan has par­ti­cip­ated in the Clean Devel­op­ment Mech­an­ism of the Kyoto Pro­tocol and con­tin­ues to believe in the import­ant role of innov­at­ive fin­an­cing mech­an­ism for cli­mate actions with sus­tain­able devel­op­ment bene­fits. Bhutan views cooper­at­ive approaches in mar­ket and non-mar­ket mech­an­isms under Art­icle 6 of the Par­is Agree­ment as an import­ant instru­ment to raise mit­ig­a­tion ambi­tion with envir­on­ment­al integ­rity while pro­mot­ing sus­tain­able devel­op­ment and wel­comes the oppor­tun­ity to par­ti­cip­ate on cooper­at­ive approaches.”

Bhutan intends to par­ti­cip­ate in cooper­at­ive approaches under Art­icle 6 and has already taken steps to pre­pare for Art­icle 6 par­ti­cip­a­tion, includ­ing: ● Adop­tion of the Bhutan Car­bon Mar­ket Rules (2023), estab­lish­ing the leg­al and pro­ced­ur­al frame­work for car­bon mar­kets. ● Devel­op­ment of a Nation­al Car­bon Registry to track cred­it issu­ance, trans­fers, and com­pli­ance. ● Estab­lish­ment of the BCF (2023) to serve as the primary fin­an­cial mech­an­ism sup­port­ing the country’s par­ti­cip­a­tion in car­bon mar­kets under the Art­icle 6 of the Par­is Agree­ment. ● Devel­op­ment of Car­bon Mar­kets Frame­work (2025) for the King­dom of Bhutan provid­ing guid­ance on car­bon mar­kets pro­cesses, gov­ernance frame­work and mar­ket infra­struc­tures. ● Adop­tion of the Pos­it­ive List of activ­it­ies eli­gible for car­bon trad­ing under Art­icle 6 of the Par­is Agree­ment. ● Assess­ment of car­bon mar­ket poten­tial and devel­op­ment of eli­gible mit­ig­a­tion activ­it­ies for par­ti­cip­a­tion in the cooper­at­ive approach ● In addi­tion to mar­ket mech­an­isms, Bhutan con­siders Art­icle 6.8 as a tool for advan­cing cli­mate action and explor­ing oppor­tun­it­ies to col­lab­or­ate with oth­er parties in devel­op­ing non-mar­ket approaches.