Bhutan reaffirms carbon neutrality in its most ambitious climate plan yet

The nation’s Third Nationally Determined Contributions (NDC 3.0) sets clear, quantified emission reduction targets for 2035

December 30, 2025

Pema Lham, a grade 10 student, Laya Middle Secondary School in Gasa district, Bhutan

UNDP/Dechen Wangmo

"For generations, highland communities in Bhutan lived in harmony with nature. But now, our lives are being reshaped by climate change. But even as the mountains change, we do not despair, we act," said Pema Lham, a Laya student, as she pleaded for urgent global climate action at the launch of Bhutan's Third Nationally Determined Contribution (NDC) 3.0.

Bhutan's NDC 3.0, its most ambitious climate commitment to date, was launched high in the Himalayas, amid the stunning peaks of Laya at an elevation of over 4,000 meters above sea level, on 24 October 2025.

NDCs are a country's climate action plans under the Paris Agreement, showing how it will cut greenhouse gas emissions and adapt to climate change impacts.

Unveiled by Prime Minister Dasho Tshering Tobgay, NDC 3.0 is a bold climate promise of a nation that remains among the world’s few carbon-negative countries.

The launch site, Laya, is more than symbolic. It is a window into the lived reality of highland communities grappling with the impact of climate change. Home to people who have lived in harmony with nature for generations, as Pema Lhamo aptly described, the highland communities in Bhutan are now witnessing their lives, livelihoods, and environment shift under the strain of climate change.

“Bhutan, particularly its highland communities, contribute the least to global emissions, but remains the most affected by the climate crisis,” said the Prime Minister. “Recognising this, our NDC 3.0 places vulnerable communities like Laya at the heart of climate action.”

The Department of Environment and Climate Change (DECC), Ministry of Energy and Natural Resources, led the formulation of NDC 3.0, in partnership with the United Nations Development Programme (UNDP), with funding from the Government of Germany and Climate Promise partners.

A whole-of-economy transition

Grounded in Bhutan’s 21st Century Economic Roadmap, NDC 3.0 lays out a clear, cross-sectoral blueprint for low-carbon, climate-resilient development through 2035.

It outlines quantifiable, sector-specific emission reduction targets, derived from the nation’s updated Long-Term Low Emission and Climate-Resilient Strategy. The plan spans all sectors, including energy, industry, agriculture, food systems, and forestry, placing nature at the core of its climate response in alignment with COP30’s focus on nature-based solutions.

The plan also strengthens Bhutan’s commitment to protect its rich biodiversity and forest ecosystems, which play a vital role as global carbon sinks.

Recognising that climate change does not affect everyone equally and to ensure no one is left behind, NDC 3.0 places youth and social inclusion at the heart of climate action. It prioritises youth leadership in climate innovation, investments in green jobs for young people and gender-responsive policies. Women and persons with disabilities are central to the nation’s climate response.

Sunlit valley with snow-capped mountains; a person in orange walks on grass, blue sign on right. — Dasho Tshering Tobgay, Prime Minister of Bhutan

UNDP/Dechen Wangmo

“For a small country that did little to cause the climate crisis, these are outsized commitments and actions. But Bhutan has always done more than our fair share,” said Prime Minister Dasho Tshering Tobgay. “Our forests absorb more CO₂ than we emit. We stretch our limited budgets to build climate resilience, and we see it not as a burden, but a responsibility to future generations.”

The cost of carbon negativity

Bhutan has made a deliberate—and costly—choice to remain carbon negative. By forgoing the full exploitation of its natural resources, Bhutan sacrifices millions in potential revenue.

Today, Bhutan aspires to achieve 10X economic growth by 2050. While the country’s ambitions have grown, its path remains unchanged: balancing environmental protection with progress, guided by its low-emission development strategies.

Bhutan spends about 3.2% of its GDP on climate and biodiversity—among the highest globally. It subsidises clean electricity for rural homes to reduce reliance on firewood, and has integrated climate education into the national curriculum, preparing future generations to become stewards of the planet.

“Bhutan’s NDC 3.0 underlines the nation’s enduring leadership on climate,” said UNDP Resident Representative Mohammad Younus. “It shows how even a small, mountainous country can lead with ambition, stay carbon negative, and contribute directly to making COP30 a summit of delivery and nature. UNDP is proud to have supported Bhutan’s NDCs, from the first to the third, with support from our Climate Promise and core donors. As Bhutan works towards turning its climate ambitions into actions, UNDP will continue to remain a steadfast partner.”

A call for global support

But ambition alone is not enough.

NDC 3.0 highlights Bhutan’s urgent need for climate finance, technology, and capacity-building support. Climate-induced loss and damage are already straining public resources. For instance, the cost of restoring and maintaining roads damaged by landslides and floods has increased by 112%.

“The climate crisis is forcing us to divert precious funds from education, health, and infrastructure to rebuilding and recovery,” said the Prime Minister. “This is not sustainable for a small economy like ours.”

Bhutan’s message to the global community is clear: international support to vulnerable countries is not charity or gestures of goodwill; they are foundational to global solidarity and shared survival.

“Let Bhutan’s NDC 3.0 serve as both an invitation and a challenge,” said UNDP Resident Representative Mohammad Younus. “To match words with deeds, ambition with delivery, and promises with partnership.”

In the same vein, Pema Lhamo urged the world to step up. "My country has always done more than its fair share to protect the planet. As Bhutan continues to lead by example, we ask the world: stand with us. Support our journey. Join us in protecting what is precious, not just to Bhutan, but to all of humanity."