Monggar

Pema Gatshel

Lhuentse

Samdrup Jongkhar

Gasa

Trashi Yangtse

Paro

Chhukha

Samtse

Thimphu

Tsirang

Dagana

Punakha

Wangdue Phodrang

Sarpang

Trongsa

Bumthang

Zhemgang

Trashigang

Bhutan

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Local CSOs and CBOs in landscapes-seascapes around the world access grant financing and technical assistance, including capacity development and knowledge sharing to maintain and enhance their socio-ecological resilience, well-being and socio-economic conditions for global environmental benefits.

The Kingdom of Bhutan is highly vulnerable to climate-induced water scarcity, glacial lake outburst floods, landslides, windstorms, and forest fires. These hazards affect farmers, damage roads, homes, and critical infrastructure like schools, health facilities, and government offices, and harm crops and livestock. This threatens livelihoods and creates food and water insecurity.

To address these challenges, the project aims to enhance technical and institutional adaptive capacities and knowledge and support locally-led climate-responsive practices. It focuses on placing communities at the center of adaptation planning and budgeting, ensuring interventions meet the needs of local governments and communities.

The project will establish a grant facility covering at least 60 gewogs (groups of villages) with an adaptation-focused investment grant package of up to USD 125,000 USD per gewog. It targets the most vulnerable communities identified in the country’s 2023 Climate Vulnerability Risk Assessment Report. Additionally, the project will support gender-friendly farm mechanisation, provide equipment, promote green initiatives, and implement nature-based solutions to enhance ecosystem services and community resilience.

The project’s main goal is to enhance the resilience of smallholder farmers in Bhutan to key identified climate risks and enhance their food security by rolling out innovative index-based microinsurance through an integrated resilience building approach. The project will achieve its goal through the following three objectives: 1. Strengthen climate-resilient agricultural practices to underpin integrated climate risk management by smallholder farmers; 2. Roll out innovative climate risk transfer mechanism and build smallholder farmers’ resilience through integrated approach; and 3. Institutionalise innovative climate risk management for long-term sustainability. The project will meet these objectives through three interlinked components as detailed in Part II.A that will deliver an integrated package of interventions to address key causes of vulnerability to climate change and food insecurity for vulnerable smallholder farmers in selected districts in Bhutan. Component 1 focuses on enabling risk reduction to decrease overall exposure to more frequent and less severe climate
risks on the part of smallholder farmers. The bulk of the project budget will be allocated to Component 2 for the rolling out of index insurance, including for the
necessary associated activities of increasing access of predominantly women farmers to savings products and
microfinance and of facilitating concrete adaptation activities to enhance climate-resilient production, as well as
diversified livelihoods through value chain and marketing support for climate-resilient value chains. Under Component 3 the project will implement activities to institutionalise the innovative climate risk management
approach of index-based microinsurance delivered in an integrated resilience building approach for long-term
sustainability.

Given the amount of the past and current activities on climate change in the country, the present proposal will extensively draw from and build upon the past and current work rather than duplicating what has been and is being undertaken. Thus, the main objective of this proposal is to support the Kingdom of Bhutan prepare and submit the First Biennial Transparency Report and a combined Fourth National Communication and Second Biennial Transparency Report (BTR1 – NC4+BTR2) in compliance with the United Nations Framework Convention on Climate Change (UNFCCC) and Paris Agreement’s (PA) reporting obligations.

Geography

Bhutan

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