World Bank approves $34.5 million Bhutan green-economy value-chain project

The World Bank approved a $34.5 million package on June 13, 2025 to modernise Bhutan's Renewable Natural Resources sector and create 12,000 jobs. The project's blended IDA-PROGREEN financing and measurable carbon outcomes offer Indian ESG stakeholders a regional model for green rural-livelihood investment.

Announced on June 13, 2025, the "Accelerate Bhutan's Job Transformation through Renewable Natural Resource Value Chains Project" provides $34.5 million to transition agriculture, livestock, and forestry from subsistence to a modern, environmentally sustainable economy. It is underpinned by $29.8 million from the International Development Association (IDA) and $4.7 million from the PROGREEN global fund. Approximately 42,000 individuals are expected to benefit, 65% of whom are women, with 12,000 full-time jobs projected across dairy, citrus, potato, and forest-based chains.

The project, executed by the Royal Government of Bhutan, primarily affects rural producers, women- and youth-led enterprises, and public agencies governing the RNR sector. It supports targeted grants, organisational training, and business development services for enterprises transitioning into agro-processing and market-oriented services, and provides labour-saving tools to enhance gender inclusivity. Institutionally, it upgrades food safety services, agricultural extension systems, and national market-information frameworks to enable scaling of production, quality control, and export-readiness across value chains.

Affected entities should monitor the project's focus on climate-smart technologies, market access, and public-private partnerships, alongside modernisation of regulatory and quality infrastructure to attract investment and ensure trade compliance. Over a 20-year horizon, the initiative is estimated to mitigate 221,087 tonnes of CO₂ equivalent by reducing post-harvest losses, increasing climate-resilient practices, and improving processing and packaging standards. Stakeholders should track how the model links producers to new markets while maintaining Bhutan's carbon-neutral credentials.

Key figure — Financing package: $34.5 million ($29.8 million IDA, $4.7 million PROGREEN)