WASHINGTON DC, June 12, 2025 — The World Bank’s Board of Executive Directors today approved $34.5 million financing to help Bhutan boost value addition and employment in the agriculture, livestock, and forestry sectors—key drivers of Bhutan’s green economy, benefitting about 42,000 people, 65 percent of whom are women.
The Accelerate Bhutan’s Job Transformation through Renewable Natural Resource Value Chains Project will support the Royal Government of Bhutan’s efforts to transform the Renewable Natural Resource sector from subsistence-based activities to a more modern, market-oriented system. It will create 12,000 full-time jobs through better market access and trade. The project will help strengthening sustainable agricultural production; providing organizational support and grants to beneficiaries; and increasing market exploration capacity, improving quality infrastructure and service delivery.
“This project will help unlock Bhutan’s green economic potential by transforming rural livelihoods through climate-smart practices, better market access, and value chain development. By connecting small producers with markets, fostering innovations, and boosting women and youth participation, Bhutan can create more and better jobs in a sustainable and inclusive way,” said Cecile Fruman, Acting World Bank Country Director for Bhutan. “The project will drive economic growth and enhance Bhutan’s competitiveness in both domestic and export markets, while ensuring environmental sustainability and carbon neutrality."
The project will invest in high-potential value chains such as dairy, citrus, potato, and emerging forest-based industries. It will help smallholder farmers adopt climate-smart practices, access better post-harvest technologies, and ensure compliance with the trade requirements of export destinations. To support women, who make up most of Bhutan’s rural workforce, the project will provide labor-saving equipment to ease workloads and encourage greater participation in formal value chains.
“The project will foster productive partnerships between producers and market actors through matching grants and targeted business development support. Special focus will be placed on women- and youth-led enterprises, who are leading the reallocation of jobs from the farm towards services such as processing and marketing that add value” said Amadou Ba, World Bank Senior Agriculture Economist and Task Team Leader of the project. “The project will also help strengthen the capacity of key government agencies to improve the business environment and engage the private sector by strengthening food safety and quality services, agricultural extension, and market information.”
By reducing food loss, increasing the adoption of climate-smart agriculture, and promoting value addition, the project is expected to support long-term carbon mitigation and climate adaptation. Over a 20-year period, it is projected to mitigate approximately 221,087 tons of CO₂ equivalent, contributing to both economic and environmental sustainability.
The financingincludes $29.8 million IDA financing and $4.7 million PROGREEN grant. The World Bank has supported Bhutan since 1981. This new project builds on that strong partnership and reflects the World Bank’s commitment to inclusive and climate-resilient development in Bhutan.
