Bhutan’s Department of Environment and Climate Change (DECC) has signed a memorandum of understanding (MoU) with the Global Carbon Council (GCC), an independent carbon standard organization recognized across the Global South, to enhance the country’s participation in international carbon markets. The agreement aims to bolster Bhutan’s institutional and technical capabilities in several key areas, including capacity development, carbon market governance, project development, and the implementation of a digital registry infrastructure.

The MoU focuses on supporting Bhutan’s efforts to build robust frameworks for carbon trading by providing training and workshops on the GCC’s standards and protocols. These sessions will cover topics such as project registration, issuance processes, methodology development, and the overall project development cycle. The collaboration is also set to explore ways to adopt relevant GCC standards and governance mechanisms tailored to Bhutan’s emerging carbon market.

Dr. Yousef Alhorr, founding chairman of the Global Carbon Council, highlighted Bhutan’s leadership in environmental sustainability, praising its ongoing commitment to achieving net-zero emissions. He emphasized that the partnership aims to translate Bhutan’s climate ambitions into credible market actions that are both scalable and sustainable. Alhorr added that the agreement seeks to mobilize climate finance while maintaining environmental integrity and supporting sustainable development goals.

Karma Tshering, Secretary of Bhutan’s Ministry of Energy and Natural Resources, described the MoU as a significant move toward enhancing the country’s readiness to engage effectively in the global carbon market. The cooperation with the GCC is expected to strengthen national capacities and establish governance arrangements that align with international standards.

This development comes as Bhutan continues to position itself as a front-runner in climate action, leveraging its forest-rich landscape and commitment to maintaining a carbon-negative status. The partnership with the GCC represents a strategic effort to build institutional mechanisms necessary for transparent and efficient participation in carbon trading systems, which could attract international climate finance and support Bhutan’s sustainable development objectives.