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.