Bhutan’s negative carbon footprint

Bhutan, known locally as the Land of the Thundering Dragon, covers an area similar to Switzerland and has a population of just 727,145. Over half of its residents work in agriculture, while the majority of the country’s revenue comes from hydropower exports and tourism. The landscape is varied, ranging from subtropical forests in the south to the high Himalayas in the north.

Gross Domestic Happiness

Bhutan is renowned globally for its concept of Gross National Happiness, which King Jigme Singye Wangchuck emphasized in the 1970s as being more important than Gross Domestic Product. This happiness is rooted in Buddhism, the preservation of traditions, and sustainable development with a strong focus on environmental care.

Buddhism influences every aspect of life in Bhutan. The landscape is adorned with prayer flags, Buddhist stupas, and monasteries perched on mountain slopes, with about 15% of the population being monks. Shrines are present in every home, and monks play an official role in politics.

Environmental stewardship is a key priority. Bhutan is the only country with a negative carbon footprint, with 60% of its land covered by forests. Private logging is banned, and state logging is tightly regulated. Bhutan’s forests absorb three times more carbon than the country emits.

Electric mobility is encouraged through the elimination of import duties on electric cars and the establishment of preferential loans for their purchase. Between 2019 and 2021, 23 fast-charging stations are planned.

Agriculture is targeted to be fully organic by 2020, and Bhutan is close to achieving this. Plastic bags are banned nationwide.

There are no slaughterhouses in Bhutan, and killing animals is prohibited, although some Bhutanese consume meat imported from India. Killing protected species is punishable by imprisonment.

To safeguard public health, smoking and the sale of tobacco products are banned throughout the country.

Modernization of the country

The first tourists officially visited Bhutan in 1974. The kingdom emphasizes sustainable tourism development: visitors must use a guide, and there is a minimum fee of USD 250 per person per day. In 2018, fewer than 300,000 foreign tourists visited the country.

Under the reign of the Fourth King and his son, Bhutan has seen significant changes. Until 1999, the country had no internet or television, but now half of the population uses the internet, and nearly everyone has a mobile phone. Over the past decade, the road infrastructure has expanded by 600%, and there are 75,000 registered cars. Despite this, Thimphu remains the only capital city in the world without traffic lights.

King Jigme Singye Wangchuck (the Fourth King) initiated the democratization of Bhutan and established a constitutional monarchy. In 2008, the first elections for the National Assembly were held. That same year, his son, just 27 years old, was crowned after the Fourth King’s abdication. The abdication surprised many, but the Fourth King explained he wanted his son to learn the role with his guidance. The new king, educated at Oxford, is admired for his charisma, has a beautiful wife, and a photogenic son. He travels extensively to engage with the Bhutanese people and is increasingly known as the “King of the People.”

Hydropower

Bhutan’s hydroelectric infrastructure has a current capacity of 1,651 MW, with potential for up to 30,000 MW, of which 23,760 MW appears economically viable.

The development of this hydropower infrastructure has been significantly supported by India, which receives about 70% of Bhutan’s energy output. Profits from these exports contribute 27% to Bhutan’s state revenue and 14% to its GDP. By 2020, the transmission capacity between Bhutan and India is expected to reach 11,000 MW.

During summer, Bhutan sells surplus energy, but in winter, it imports energy from India due to lower water flow.

Planned expansions include several reservoir and run-of-river power plants by 2020. The five large power plants currently operating are all run-of-river schemes:

Tala (1,020 MW): The largest joint venture between India and Bhutan, generating 4,865 million kWh per year. It features a 92 m high dam, a 22 km tunnel, and six generators of 170 MW each. The power is transmitted to India via three 440 kV lines.

Chhukha (336 MW): Bhutan’s oldest large hydro plant, operating since 1988, funded entirely by India. It has four turbines, but during winter, only one turbine operates due to reduced water flow in the Wangchhu River.

Dagacchu (126 MW): Bhutan’s first public-private partnership in infrastructure, with Druk Green Power Corporation (59%), Tata Power Company of India (26%), and Bhutan’s Pension and Annuity Fund (15%). It was financed with a US$80 million loan from the Asian Development Bank and was the first cross-border project registered under the UN Clean Development Mechanism.

Basochhu (64 MW): Built in two phases between 1997 and 2004, with Austrian technical and financial involvement. It is fully computerized.

Kurichu (60 MW): Started in 2002 as a project between India and Bhutan’s governments.

In addition, Bhutan has small hydroelectric plants not connected to the main grid, which play a vital role in the local economy.

Criticism of hydropower projects

Recently, the development of hydropower in Bhutan has faced increasing criticism. The financing model has shifted from a 70% grant and 30% loan structure from India to the reverse. Bhutan’s debt has been rising, with 60% linked to hydropower projects. Since 2007, the profit from each unit of energy has been declining. Additionally, despite official claims, environmental concerns are often overlooked, with energy projects causing deforestation, habitat changes, noise, and dust pollution. Local communities are frequently not informed about potential risks.

More than 30 new hydropower projects or expansions are planned by 2030. NGOs are urging the Bhutanese government to more rigorously assess these projects for their alignment with sustainable development principles that Bhutan promotes.

The article was first published in SMART magazine.