The Global Environment Facility (GEF), a multilateral fund committed to tackling biodiversity loss, climate change, and pollution, has approved a USD 20 million grant under its Least Developed Countries Fund (LDCF) for Bhutan’s Enhancing Climate Resilience of Urban Landscapes and Communities in the Thimphu-Paro Region (ECRUL) project.
With additional co-financing commitments exceeding USD 62 million from the government, this initiative addresses critical climate challenges in the Thimphu-Paro region, the country’s primary urban centers.
These areas contribute over 40% of the national GDP and house a quarter of the country’s population. However, rapid urbanization and escalating climate impacts have left them vulnerable, including flooding, landslides, and water scarcity.
The six-year ECRUL project, running from 2025 to 2030, focuses on implementing nature-based solutions, such as restoring 800 hectares of watershed and springshed land, enhancing stormwater management infrastructure, and upgrading early warning systems.
The project, spearheaded by the Ministry of Infrastructure and Transport (MoIT) in collaboration with the United Nations Development Programme (UNDP), will directly benefit over 146,000 residents.
Secretary, MoIT, Karma Wangchuk, emphasized the importance of urban resilience in Bhutan’s rapidly growing cities. He said that Bhutan’s urban areas are increasingly vulnerable to severe climate events due to rapid urbanization.
He said that the ECRUL project, represents a crucial step in building resilience, aligning with Bhutan’s commitments under the Paris Agreement and the National Adaptation Plan (NAP). He also emphasized the project’s role in enhancing disaster preparedness, strengthening water management, and promoting climate-resilient urban planning as key priorities for the government.
CEO and Chairperson of GEF, Carlos Manuel Rodríguez, said, “Despite its status as one of the world’s only nature-positive, carbon-negative countries, Bhutan faces serious threats from the impacts of climate change. We are proud to support the Government of Bhutan’s efforts to address these impacts in the two most populous urban centers in the country.”