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The report evaluates Bhutan's MEL system for its 2023 National Adaptation Plan, finding significant institutional fragmentation, capacity gaps, and a lack of quantifiable metrics for resilience. It recommends establishing a formal coordination mechanism between the Department of Environment and Climate Change, the Office of the Cabinet Affairs and Strategic Coordination, and the Ministry of Finance, alongside a unified national M&E system to replace outdated web-based tools and fragmented Excel reporting.

The closure of the Strait of Hormuz during the Iran war has triggered a global energy crisis, causing Brent crude to reach USD 138/barrel and spiking natural gas prices, particularly in Asia. This disruption has led to increased food and fertiliser prices, slowed global GDP growth, and strained national budgets through increased fossil fuel subsidies. In response, 26 countries and regions have implemented clean energy measures, with Asia leading in both vulnerability to supply shocks and the acceleration of clean technology investments and deployments.

The authors argue that the Paris Climate Agreement's 'name and shame' approach fails because it ignores the science of cooperative agreements on common resources. They propose a climate club where members commit to net-zero CO2 emissions by 2050, using a combination of high import tariffs and export taxes on non-members, a uniform tariff surcharge (up to 10%) on non-member imports, and penalties for members who miss intermediate goals. To ensure WTO compatibility, the proposal relies on GATT Articles XX(b) and XX(g), allowing any regulatory approach that achieves emissions reductions. The plan includes a Multilateral Fund for developing countries and suggests similar structures for methane and nitrous oxide, drawing inspiration from the Montreal Protocol.

Solar growth in South Asia is reducing the power sector's exposure to global fossil fuel price shocks, though the pace varies by country. In Pakistan, rooftop solar generation grew from 7.7 TWh in 2022 to 36.6 TWh in 2025, saving an estimated USD 12 billion in LNG imports. In contrast, Bangladesh increased its reliance on coal, with generation rising from 7.87 TWh to 30.06 TWh between 2022 and 2025. While the power sector is diversifying, the region remains highly dependent on imported oil and gas for transport and industry. The report suggests that electrifying these end-uses and expanding regional electricity trade—with India as a hub—are essential to further cutting import costs and improving energy security.

The GCF Accreditation Panel recommends the accreditation of the Bank of Bhutan Limited (BoB) as a national direct access entity for 'small' projects with a 'medium risk (I-2)' environmental and social category. While BoB demonstrates strong institutional presence as Bhutan's largest commercial bank and a track record in green financing, the assessment identified gaps in internal audit quality assurance, public disclosure of procurement and investigation guidelines, and the operationalization of its grievance redress mechanism. The recommendation is subject to specific conditions to be met both before the issuance of the accreditation certificate and before the submission of the first funding proposal, including the development of a Gender Action Plan and the implementation of risk-based E&S screening tools.

The 2026 ESMP for Biological Corridor 2 (BC 02) in Wangdue, Bhutan, focuses on the expansion of the Dazijab campsite. The project is classified as Category B, meaning potential environmental and social impacts are site-specific and reversible. Planned works include adding a secure compound fence and a four-unit traditional hot stone bath. The plan outlines mitigation measures for construction waste, noise, and occupational health and safety (OHS), while ensuring compliance with both Bhutanese law and WWF's Social Safeguards Integrated Policies and Procedures (SIPP).

The 2026 ESMP for Jomotshangkha Wildlife Sanctuary outlines mitigation strategies for four key activities: lowland grassland restoration, waterhole maintenance, bio-engineering at the Tashithang landslide area, and a 5-hectare plantation at Lauri. The plan categorizes the project as 'Category B,' meaning impacts are site-specific and reversible. It details environmental risks such as invasive species spread and soil erosion, and social risks including worker safety from wildlife attacks and potential disruption of grazing rights. The document specifies a total budget of Nu. 2,000,000 and mandates compliance with both Royal Government of Bhutan laws and WWF's Social Safeguards Integrated Policies and Procedures.

The ESMP for Phrumsengla National Park (PNP) for 2026 focuses on two primary activities: the improvement of alpine meadows and the maintenance of the Phawan Range Office. The document outlines the environmental and socio-economic baseline of the park, which covers 906 km² and serves as a critical habitat for endangered species like the tiger and red panda. For the alpine meadow project, mitigation focuses on preventing accidental vegetation loss and managing worker waste. For the range office maintenance, the plan emphasizes the safe disposal of termite-infested wooden trusses and worker safety. Both activities are classified as Category B, meaning impacts are site-specific and reversible. The plan mandates strict adherence to WWF's Social Safeguards Integrated Policies and Procedures (SIPP) and Royal Government of Bhutan (RGoB) laws, including a grievance redressal mechanism and occupational health and safety standards.

The ESMP for Sakteng Wildlife Sanctuary (SWS) for 2026 outlines mitigation strategies for three primary activities: improving alpine meadows at Nakchungla, restoring degraded grazing land at Chabling, and improving waterholes across four sites. Categorized as a Category B project, the plan focuses on managing site-specific, reversible risks such as occupational health and safety, waste generation, and minor soil disturbance. It mandates the use of manual labor, personal protective equipment (PPE), and community engagement through local contractors and grievance redressal mechanisms to support the livelihoods of semi-nomadic herders while conserving biodiversity.

The Environmental and Social Management Plan (ESMP) for Wangchuck Centennial National Park (WCNP) for 2026 focuses on the 'Improvement of alpine Meadows by clearing invading shrubs' activity. Categorized as a Category B project under the Bhutan for Life (BFL) framework, the plan identifies site-specific, reversible risks and outlines mitigation strategies to protect workers, biodiversity, and soil stability. The project, budgeted at Nu. 650,000, aims to expand grazing lands for yak-herding communities in Chokhor Gewog and preserve habitats for key prey species of predators like snow leopards and tigers.

The 2026 ESMP for Jigme Dorji National Park (JDNP) outlines mitigation strategies for two primary activities: the improvement of waterholes at Jatsho, Rimchu Top, and Kewana, and the restoration of 12 hectares of alpine meadows at Tsharijathang, Shingchela, and Magathang. Categorized as a Category B project, the BFL initiative focuses on maintaining carbon neutrality, enhancing community well-being, and protecting biodiversity. The plan mandates strict adherence to WWF's Social Safeguards Integrated Policies and Procedures (SIPP) and national laws, emphasizing stakeholder engagement, occupational health and safety, and the use of prescribed burning for meadow restoration. Monitoring will be conducted by Range Officers and the Project Coordination Unit (PCU) to ensure compliance and the disbursement of funds.

The ESMP for Biological Corridor 03 (Sarpang) outlines the environmental and social safeguards for 2026 activities at the Southern Wildlife Rescue and Rehabilitation Centre (SWRRC). Categorized as a Category B project, the plan focuses on the maintenance of animal enclosures and a 700m access road, with a budget of Nu. 7,424,364. It identifies potential risks such as flooding and sedimentation of the Bhur stream, construction waste, and worker health hazards, providing specific mitigation measures for each. The document also details strict occupational health and safety (OHS) standards, stakeholder engagement protocols, and grievance redressal mechanisms aligned with both Royal Government of Bhutan laws and WWF's Social Safeguards Integrated Policies and Procedures.

The 2026 ESMP for Biological Corridor 03 (BC3) in Tsirang, Bhutan, outlines mitigation strategies for three primary projects: the construction of Golden Mahseer spawning infrastructure at Daga Rongchhu, nursery management for high-value timber at Damphu, and a 5-hectare bamboo plantation at Sirutar. Categorized as a 'Category B' project, the plan focuses on site-specific, reversible impacts. It mandates strict adherence to both Royal Government of Bhutan (RGoB) laws and WWF's safeguard policies, particularly where WWF standards are more extensive regarding non-title land users and community consultation. The plan includes detailed occupational health and safety (OHS) standards, waste management protocols, and a multi-tiered grievance redressal mechanism involving BFL, WWF, and the Green Climate Fund (GCF).

The ESMP for Biological Corridor 07 (BC-7) in Bhutan outlines mitigation strategies for four planned activities in 2026: operational support for the Yangbari eco-camp, re-electrification of staff quarters in Lhuentse, establishment of a tree nursery in Sherichu, and a 10-hectare plantation in Daksamanag. The document details the environmental and socio-economic baseline of BC-7, which includes diverse forest types and threatened species like the Pallas’s fish eagle and smooth-coated otter. It mandates specific safeguards for waste management, occupational health and safety (OHS), and stakeholder engagement, while providing grievance redressal mechanisms through BFL, WWF, and the Green Climate Fund.

The ESMP for Biological Corridor 08 (Bumthang) outlines the environmental and social safeguards for a 3-hectare high-value timber plantation planned for 2026. It details the ecological baseline of the 577.90 km² corridor, identifies potential risks such as soil disturbance and restriction of grazing routes, and prescribes specific mitigation measures. The plan also establishes monitoring arrangements, stakeholder engagement protocols, and comprehensive occupational health and safety standards for workers.

The 2026 Environmental and Social Management Plan (ESMP) for the Bumdeling Wildlife Sanctuary focuses on the restoration of Dungtsho Lake. Categorized as a Category B project under the Bhutan for Life (BFL) initiative, the plan identifies potential risks such as habitat disturbance, the spread of invasive species like Acorus calamus, and seasonal interference with migratory waterbirds. It outlines specific mitigation measures, including scheduling work outside peak breeding seasons (March-July) and implementing strict waste management. The plan also details occupational health and safety standards for community contractors and establishes a monitoring framework involving BFL focal persons and the Project Coordination Unit (PCU).

The ESMP for the Jigme Kheser Strict Nature Reserve (JKSNR) outlines mitigation strategies for two primary activities planned for 2026: alpine grassland management in Lolithang and river embankment work at the JKSNR Head Office. Categorized as a Category B project, the BFL initiative aims to enhance climate resilience and biodiversity conservation in Bhutan. The plan details environmental risks such as forest fires and construction waste, social risks regarding worker health and safety, and the required mitigation measures, including the use of safety gear and waste disposal at the Anaphu landfill. It also defines stakeholder engagement, grievance redressal mechanisms, and monitoring arrangements to ensure compliance with both Royal Government of Bhutan laws and WWF safeguard policies.

The 2026 ESMP for Jigme Singye Wangchuk National Park (JSWNP) outlines mitigation strategies for three planned projects: the revival of Dawar Tsho lake, a 2-hectare plantation at Rani Camp, and maintenance of the Adha Guard post office. Categorized as a 'Category B' project, the BFL initiative focuses on site-specific, reversible impacts. The plan mandates strict adherence to both Royal Government of Bhutan (RGoB) laws and WWF's Social Safeguards Integrated Policies and Procedures (SIPP), with the latter prevailing in cases of discrepancy regarding land use and community consultation. Key mitigation measures focus on waste management, occupational health and safety (OHS), and the prevention of water contamination. Implementation is overseen by BFL focal persons and supervising engineers, with a structured grievance redressal mechanism available to stakeholders.

The report provides a comparative analysis of how 16 countries and territories are operationalising OECMs through five primary legal and policy pathways: ministerial instruments, national guidelines, administrative procedures, sector-based recognition, and mechanisms for areas beyond national jurisdiction. It finds a high degree of global convergence and alignment with the Convention on Biological Diversity (CBD) Decision 14/8 criteria, while noting that countries adapt these standards to fit their specific governance and legal contexts. The document highlights the rapid growth in OECM reporting between 2021 and 2025 and provides recommendations for scaling these frameworks globally.

The report analyzes how 16 reporting jurisdictions and several others in development operationalize OECMs through five primary pathways: ministerial instruments, national guidelines, administrative procedures, sector-based recognition, and mechanisms for areas beyond national jurisdiction. It finds a strong global convergence toward the terminology and criteria of CBD Decision 14/8, while noting that most countries prefer non-legislative policy tools over new laws to achieve conservation outcomes.