PPCR/SC.21/4 November 9, 2017 Meeting of the PPCR Sub-Committee Washington D.C. Tuesday, December 12 – Wednesday, December 13, 2017 Agenda Item 4 PPCR STRATEGIC PROGRAM FOR CLIMATE RESILIENCE FOR BHUTAN PROPOSED DECISION The PPCR Sub-Committee, having reviewed the document PPCR/SC.21/4, Strategic Program for Climate Resilience (SPCR) for Bhutan [endorses] the SPCR. The Sub-Committee encourages the Government of Bhutan and the MDBs to actively seek resources from other bilateral or multilateral sources to fund further development and implementation of the projects foreseen in the strategic plan. Gross National Happiness Commission GNHC/DCD /WB-SPCR/ �� 4 Date: November 9, 2017 Ms. Mafalda Duarte Program Manager Climate Investment Funds Administrative Unit 1818 H Street NW Washington, D.C. 20433 Suh: Submission of Bhutan's Strategic Program for Climate Resilience (SPCR). Dear Madam, The Royal Government of Bhutan (R.GoB) is pleased to submit Bhutan's SPCR formulated through broad­ based and inclusive consultations. Bhutan's SPCR is prepared in recognition of the devastatingi mpact that climate change is having on Bhutan's economy and vulnerable communities despite Bhutan being a carbon negativeLeast Developed Country. The R.GoB has continued to demonstrate itscommitment to combat climate change by voluntarily pledging to remain carbon neutral in the 2009 COP 15 in Copenhagen. To meet this obligation, Bhutan continues to restrain its socioeconomic development by maintaining 70% of its geographical area under forest cover, and 50% of the total land area under protected areas. In fact, the Constitution of the Kingdom of Bhutan mandatesthe State to maintain at-least 60% of Bhutan's total land area under forest cover at all times. Ironically, Bhutan's net sequestration status does not make it immune to global anthropogenic climate change events directly threatening the mountain ecosystem and livelihoods. Being located on the fragile eastern I-Iimalayanregion, Bhutan is highly vulnerable to hydro-meteorological hazards and weather extremes. Some of the major hazards facing Bhutan include flash floods, riverine floods, landslides, landslide dam outburst floods, cloudbursts, glacial lake outburst floods (GLOFs), forest fires, and windstorms. Recognizing its vulnerability to a number of natural hazards and the importance to enhance its resilience capacity to these disasters and to sustain and build on the economic progress that the country has made, Bhutan prioritizes enhancement of climate resilience and disaster risk management in its development agenda. The current 11thfive Year Plan (2103-2018) and the upcoming 12th Five Year Plan (2018-2023) has a dedicated National Key Result Area on "Carbon Neutral and Climate and Disaster Resilience Development". Further, Bhutan's NDC, consisting of nine mitigation and ten adaptation priorities were ratified by its Parliament in 2016. These priorities to enhance climate resilience are integrated in the 12th FYP. The formulation of the SPCR is an opportunity for Bhutan to strategically integrate the climate resilience into the priorities of the 12th Five Year Plan. The potential investment plans will be further detailed based on the findings from the ongoing technical studies under the SPCR preparatory phase and is planned to be implemented as a part of the 12th Five Year Plan. Therefore, mobilization of adequate resources for STRATEGIC PROGRAMME FOR CLIMATE RESILIENCE (SPCR) UNDER THE PILOT PROGRAMME FOR CLIMATE RESILIENCE (PPCR) Climate-Resilient & Low-Carbon Sustainable Development Toward Maximizing the Royal Government of Bhutan’s Gross National Happiness GROSS NATIONAL HAPPINESS COMMISSION THE ROYAL GOVERNMENT OF BHUTAN Bhutan: Strategic Programme for Climate Resilience (SPCR) – November 2017 Page i Cover Design: Bhawana Chettri FOREWORD The Royal Government of Bhutan (RGoB) recognizes the devastating impact that climate change is having on Bhutan’s economy and our vulnerable communities and biosphere, and we are committed to address these challenges and opportunities through the 12th Five Year Plan (2018-2023). In this context, during the 2009 Conference of the Parties 15 (COP 15) in Copenhagen, RGoB pledged to remain a carbon-neutral country, and has successfully done so. This was reaffirmed at the COP 21 in Paris in 2015. Despite being a negative-emission Least Developed Country (LDC), Bhutan continues to restrain its socioeconomic development to maintain more than 71% of its geographical area under forest cover,1 and currently more than 50% of the total land area is formally under protected areas2, biological corridors and natural reserves. In fact, our constitutional mandate declares that at least 60% of Bhutan’s total land areas shall remain under forest cover at all times. This Strategic Program for Climate Resilience (SPCR) represents a solid framework to build the climate- resilience of vulnerable sectors of the economy and at-risk communities across the country responding to the priorities of NDC. It also offers an integrated story line on Bhutan’s national climate-resilience challenges an expectations, with a geo-climatic focus on the highly vulnerable southern belt river basins, mountain ecosystems, and farming communities, This SPCR includes: innovative eco-system based approaches to Integrated Flood-Based Management (IFBM) of river basins; Climate-Oriented Integrated Watershed Management Plans; Climate SMART Human Settlement planning; building a strong information base for weather and climate services for resilience; a robust and innovative Resource Mobilization Strategy, with non-traditional financing options and sustainability mechanisms; climate-resilient CSMIs, and the promotion of adaptation business services; transformational capacity-building approaches; a strong Gender Equity and Social Development (GESI) component; and “Happiness” developmental performance reporting. The SPCR preparation and development process has been purposefully country-driven; spearheaded by the Gross National Happiness Commission Secretariat (GNHC-S) with support from the MDB Teams led by the World Bank; with Central and LG officials including Women, Youth, CSOs and private sector representation; and fully vetted by several Government Technical Teams. This SPCR has been formulated through a strategic and participatory process that ensures: (i) strong country buy-in through a highly decentralized development model; and, meaningful programmatic climate-resilient outcomes for vulnerable southern Gewogs (Blocks) and Chiwogs (Sub-blocks). The institutional mechanism for SPCR Investment implementation, and for monitoring and evaluation, are anchored within GNHC-S to ensure conformity with its mandate as a coordination agency for national level planning, coordination and monitoring of policies, programs and projects. This implementation mechanism will ensure the institutional and governance sustainability of the SPCR by effectively transforming new ideas into tangible and meaningful results on the ground. Bhutan is submitting its SPCR in a relative position of strength as it was short-listed within a group of 10 eligible countries from a much larger list of expressions of interest of 36 countries. Moreover, Bhutan is not just the first country to officially declare its carbon-neutral commitment to the world - it is the sole nation on earth to actually attain the unique status of carbon-negative state. Notwithstanding this commitment, our national development is being fundamentally hampered by a barrage of climate-induced extreme events wreaking havoc to our local economies, our very precious riparian and highly-mountain ecosystems, and extensive forest cover and protected areas. 1 Land Use Land Cover 2017 Atlas of Bhutan, Ministry of Agriculture and Forests 2 Department of Forest and Park Services Bhutan: Strategic Programme for Climate Resilience (SPCR) – November 2017 Page ii Given the profound climate-induced risk that we are facing, and our commitment to climate resilience and negative carbon status, we confidently submit this SPCR proposal to the CIF, with the distinct expectation of categorical endorsement from the CIF PPCR Committee and the International Donor Community to help galvanize the Kingdom of Bhutan toward a climate-resilient and low-carbon future in a climate- changing world. Secretary, Gross National Happiness Commission (GNHC) November 2017 Bhutan: Strategic Programme for Climate Resilience (SPCR) – November 2017 Page iii ACKNOWLEDGEMENT Bhutan’s Strategic Program for Climate Resilience has been carefully crafted with invaluable inputs, and the active participation of multi-sectoral stakeholders from Central Government Line Ministries to Local Government (LG), Multi-lateral Development Banks, Development Partners, and Civil Society Organizations - including the Civil Society Organizations Authority (CSOA) and the Bhutan Chamber of Commerce and Industry (BCCI). The Gross National Happiness Commission Secretariat (GNHC-S) of the Royal Government of Bhutan gratefully acknowledges the pivotal role played by our SPCR stakeholders. In particular, we thank the Technical Working Groups (TWG); the National Centre for Hydrology and Meteorology; Department of Forest and Park Services (Watershed Management Division) Ministry of Agriculture and Forests; the Department of Engineering Services (FEMD), Department of Human Settlement, Ministry of Works and Human Settlements; and, the National Environment Commission Secretariat - for their painstaking efforts and cooperation in the preparation