Green Transport Initiative

Project Summary:

Bhutan is a low-income country with a USD $2,400 per capita GDP, but GHG emissions are increasing along with vehicle ownership. Fossil fuel, food, and other imports consume much of the nation’s foreign exchange earnings. The Government of Bhutan aims to make the country self- reliant, improve its balance of payments, and make the country inclusive and green. Along with plans to expand hydropower generation, Bhutan would benefit from better energy use efficiency, and by decreasing the use of non- renewable fuels. The KGGTF’s two-year, USD $300,000 program will help improve urban transport in Thimphu, Bhutan’s capital and largest city. The program will provide green growth case study examples of transport systems that can lower emissions for the city’s 100,000 citizens. Cost-benefit analysis and technical assistance will help operationalize green transport, including introducing low-emission buses citywide. The program will also present a roadmap for electric vehicle implementation, including short and medium-term investment in vehicle charging stations.

List of Activities:

• Conducting policy-level analysis and advice on EV incentive program, cost and benefit study, economic and fiscal implication and urban transport
• Building strategy to achieve EV potential (including 10-year roadmap and feasibility study for changing infrastructure and facility investment)
• Improving public transport, citywide bus system and associated cycling/walking linkages providing inclusive access with low emissions modes (including strategy and investment design)
• Developing institutional capacity and knowledge-sharing

Outcomes:

Output 1:

• Policy study and advice on EV development

Output 2:

• In-time policy advice on strategy and investment program to realize EV potential
• Feasibility study for EV infrastructure
• Strategy and program for implementation

Output 3:

• Sustainable public transport study
• Low emission buses introduced

Output 4:

• Knowledge sharing on EV and public transport
• capacity building in public transport and EV

Outcomes:

The outcomes of the project will: (i) improve green transport and efficiency, (ii) incorporate targeted measures to promote smart investments and encourage changes in consumer behaviors to drive efficiency, (iii) promote greater resilience by reducing dependence on fuel, and (iv) increase competitiveness by promoting inward tourism and fulfilling Bhutan’s commitment to remain carbon-neutral. Furthermore, improved public transportation and travel efficiency, including enabling walking and cycling, can contribute to benefiting the poor, while creating a new model for national economic growth, enhancing national competitiveness and promoting tourism in Thimphu.

Collaboration with K-Partners and Others:

The project leveraged the partnership with KOTI for its experience with similar challenges to help Thimphu, which may provide examples for other emerging markets. The program is also working with a number of other partners, including Korea Grid/Power Utility Company, the Asian Development Bank, and the UNDP.