AGP Executive Report

Energy & Trade: The EU has launched a €5 million, four-year “Energy Connectivity in South Asia” project in Kathmandu, targeting cross-border electricity trade and cleaner power integration across Bangladesh, Bhutan, India, Nepal and Sri Lanka—aiming for cheaper, more reliable supply and better energy security. Renewables Push: The ADB approved a USD 160 million loan to add at least 310 MW of solar in Bhutan through three farm expansions (Wobthang, Pedseling and Dramthang) plus new transmission links—positioning solar alongside hydropower to cut costly imports. Climate Risk: ICIMOD warns that Hindu Kush Himalaya monsoon patterns are becoming more dangerous, with longer dry spells punctuated by intense downpours that can trigger flash floods and landslides even when seasonal rainfall looks lower. Waste & Tourism Pressure: In Gangtey–Phobji, a full landfill is forcing temporary dumping as visitor numbers rise, overwhelming existing waste capacity and management. Biodiversity: A rare Himalayan flowering plant, Cyananthus hookeri, was recorded in Arunachal Pradesh after 158 years, with fewer than 50 mature plants found—highlighting how fragile high-altitude habitats remain.

Regional Energy & Climate Resilience: The EU launched a €5m “Energy Connectivity in South Asia” project in Kathmandu, aiming to expand cross-border power trade and help Bhutan and neighbors access cheaper, cleaner electricity. Renewables Push in Bhutan: The ADB approved a USD 160m loan to add at least 310 MW of solar across Bhutan, with new transmission links to the national grid. Disaster Risk & Land Use: Bhutan outlined long-term flood and landslide mitigation for Phuentsholing, citing vulnerable hillsides, sediment management needs, and stronger hillside development rules. Waste Pressure in Protected Landscapes: In Gangtey-Phobji, the local landfill has filled up as tourism grows, forcing temporary dumping and raising concerns about waste handling. Green Hydrogen Direction: Bhutan’s long-term energy strategy continues to prioritize green hydrogen over CNG, reinforcing its clean-energy pathway. Wildlife & Biodiversity: A rare Himalayan flower was rediscovered in Arunachal after 158 years, highlighting how Eastern Himalaya habitats still hold surprises. Conservation Finance & Planning: Bhutan-linked regional discussions also include rhino conservation planning and broader climate-hazard warnings across the Hindu Kush Himalaya.

Clean Energy Push: The ADB approved a USD 160 million loan to add at least 310 MW of new solar in Bhutan, including 120 MW and 40 MW in Bumthang and 150 MW in Lhuentse, with grid transmission support and a first private-majority public–private partnership model. Digital Infrastructure & Hydropower: Gelephu Mindfulness City signed an LOI with Canadian SATO Technologies to develop a hydro-powered AI data-centre campus, reserving 100 MW firm power (starting with 5 MW) and aiming to finalize contracts within 12 months. Flood & Landslide Planning: Bhutan outlined long-term risk reduction for Phuentsholing—stronger land-use rules, early warning, sediment management, and resilient infrastructure—after studies flagged large areas of inactive landslides that could reactivate. Waste Crisis in Gangtey-Phobji: The Gangtey-Phobji landfill has filled up as tourism grows, forcing temporary dumping elsewhere and raising concerns about weak site management and limited disposal space. Local Governance Focus: Thimphu thrompon candidates are campaigning on practical services, including better drinking-water connectivity and safer pedestrian walkways.

Solar Push: The Asian Development Bank approved a USD 160 million loan to add at least 310 MW of new solar across Bhutan, including Wobthang (120 MW) and Pedseling (40 MW) in Bumthang and Dramthang (150 MW) in Lhuentse, with transmission upgrades to connect to the national grid. Flood & Landslide Planning: After severe monsoon flooding in Phuentsholing displaced 41 families, Bhutan outlined long-term risk reduction for the area—better land-use rules, early warning, sediment management, and resilient infrastructure—while Phuentsholing’s long-term mitigation plans focus on hillside vulnerability and upstream controls. Climate Risk for Children: UNICEF reports 89.6% of Bhutanese children are exposed to at least one climate hazard, with drought the most widespread threat (85.68%), raising urgency for child-focused adaptation. Disaster Preparedness: Tsirang Dzongkhag launched a Disaster Management and Contingency Plan with 60 thematic maps to guide evacuation, water sources, and response across gewogs. Energy & Tech Link: A letter of intent was signed for a hydro-powered AI compute campus in Gelephu, reserving 100 MW of firm power for a phased data centre project. Wildlife & Biodiversity: A WWF camera-trap survey in China captured rare snow leopard sightings, adding to alpine biodiversity knowledge relevant to the wider Himalayan region. Local Elections: Thimphu and Phuentshogling thromde campaigns are highlighting practical priorities like safer pedestrian walkways and improved water supply. E20 Fuel Row: Bhutan’s concerns over E20 storage and engine compatibility continue to spark diplomatic and media back-and-forth, with India’s petroleum ministry denying any offer to export E20 to Bhutan.

Solar Push: The Asian Development Bank approved a USD 160 million loan to add at least 310 MW of new solar across Bhutan, with transmission upgrades to connect three solar farms to the national grid. Climate & Flood Risk: Scientists warn the Hindu Kush Himalaya is facing longer dry spells broken by intense local downpours that can trigger flash floods and landslides, even where seasonal monsoon totals look lower. Disaster Planning in Bhutan: Long-term flood and landslide mitigation plans for Phuentsholing outline land-use controls, early warning upgrades, sediment management, and resilient infrastructure after recurring disasters. Flood Impacts: Torrential rain displaced 41 families in Phuentsholing’s Amochu Housing Colony, burying ground floors and halting an ongoing housing project. Earthquake Costs: Bhutan Insurance Limited reported 134 earthquake-related claims worth about Nu 5.34 million, with rural damage most common. Child Climate Exposure: UNICEF says 89.6% of Bhutanese children are exposed to at least one climate hazard, with drought the most widespread threat. Wildlife & Biodiversity: A rare snow leopard camera-trap survey in China highlights ongoing alpine biodiversity monitoring and protection needs. Local Governance: Thimphu thrompon candidates focus on better water supply and safer pedestrian walkways as elections near. Energy Trade Tension: A diplomatic dispute over whether India offered E20 petrol to Bhutan continues, with Bhutan’s Department of Trade citing storage-tank concerns while India denies any formal offer. Disaster Management at Dzongkhag Level: Tsirang launched a Disaster Management and Contingency Plan with evacuation mapping and guidance for preparedness, response, and recovery.

Flash Flood Warning for HKH: Scientists warn the Hindu Kush Himalaya faces a riskier monsoon pattern—long dry spells can be suddenly broken by intense local downpours that trigger flash floods, landslides and glacier-related hazards, even where seasonal rainfall forecasts look lower. Phuentsholing Flood Planning: Bhutan outlined long-term flood and landslide risk reduction for Phuentsholing, including better land-use rules, stronger early warning, sediment management and resilient infrastructure after recurring disasters. Amochhu Housing Colony Hit: Torrential rain on 28 June displaced 41 families in Phuentsholing; debris buried ground floors, damaged buildings under construction and halted housing works. Insurance After Earthquake: Bhutan Insurance Limited reported 134 earthquake-related claims worth about Nu 5.34 million, with rural traditional houses hit hardest. Climate Risk to Children: UNICEF says 89.6% of Bhutanese children are exposed to at least one climate hazard, with drought the most widespread threat. Tsirang Disaster Plan: Tsirang launched a district Disaster Management and Contingency Plan with thematic maps and clear guidance for preparedness, response and recovery. Green Hydrogen Focus: Bhutan reiterated it has no immediate plans for CNG, prioritising green hydrogen and other renewables for long-term energy and environmental goals. Biodiversity Note: A snow leopard camera-trap survey in China added more sightings and highlights ongoing alpine wildlife monitoring. Manas Grassland Alarm: Assam lawmakers raised concerns over shrinking grasslands in Manas National Park, linking ecological decline to invasive weeds and weak tourism infrastructure. Gelephu–Tareythang Road: The Gelephu Mindfulness City-linked road project moved closer to construction, with environmental assessments and wildlife protection measures planned along the alignment. E20 Fuel Dispute Spills Into Bhutan: A diplomatic row continues over whether Indian suppliers offered E20 to Bhutan; India’s petroleum ministry denies any offer, while Bhutan’s trade department cites concerns about ethanol’s water-absorbing effects and storage tank suitability.

Flood & Landslide Risk: Bhutan outlined long-term flood and landslide mitigation for Phuentsholing, citing climate-driven heavier rainfall plus unstable slopes and development pressures, with plans for better land-use rules, early warning, sediment management, and resilient infrastructure. Disaster Aftermath: Torrential rain on 28 June displaced 41 families at Amochu Housing Colony, burying ground floors under debris and halting parts of an ongoing housing project. Shelter Safety: Government says Amochhu Temporary Shelter was only a COVID-era emergency setup and will not be renovated or rebuilt due to deterioration, recurring floods, and fire hazards. Climate Hazards for Children: UNICEF reports 89.6% of Bhutanese children are exposed to at least one climate hazard, with drought the most widespread threat. Earthquake Costs: Bhutan Insurance Limited received 134 earthquake-related claims worth about Nu 5.34 million, mostly from rural areas. Energy Transition: Bhutan reiterated it will prioritize green hydrogen over CNG, citing lack of domestic gas and high import-infrastructure costs. Transport Fuel Dispute: A diplomatic row over whether India offered E20 to Bhutan continues after India’s petroleum ministry denied any offer, while Bhutanese reporting cites internal correspondence. Biodiversity: WWF camera-trap surveys captured rare snow leopards in China, adding more sightings to ongoing alpine wildlife monitoring. Wildlife & Habitat: Assam lawmakers raised alarm over shrinking Manas grasslands, linking ecological decline to invasive weeds and underused tourism infrastructure. Local Governance: Thimphu Thrompon candidates campaign on improving water supply and safer pedestrian walkways.

Climate Risk for Children: UNICEF reports 89.6% of Bhutan’s children are exposed to at least one climate hazard, with drought the biggest threat (85.68%), and multi-hazard exposure rising for many kids. Floods in Phuentsholing: Torrential rain on 28 June displaced 41 families at Amochu Housing Colony, burying ground floors and halting parts of an ongoing housing project. Earthquake Costs: Bhutan Insurance Limited received 134 claims worth about Nu 5.34 million after the June 7 earthquake, with rural properties hit hardest. Disaster Planning in Tsirang: Tsirang Dzongkhag launched a 204-page Disaster Management and Contingency Plan, including 60 thematic maps for evacuation and risk response. Energy & Environment Policy: Bhutan reiterated it will not move to CNG, prioritising green hydrogen instead. E20 Fuel Dispute: A diplomatic row continues over claims that India offered E20 to Bhutan; India’s petroleum ministry denies any offer, while Bhutan’s Department of Trade says conventional petrol was requested. Roads Under Warming: New data shows monsoon road closures now last longer, with landslides and debris flows keeping routes shut for days. Biodiversity & Nature: A rare Himalayan plant was rediscovered in Arunachal after 158 years, highlighting Eastern Himalaya biodiversity.

Climate Risk for Children: UNICEF reports 89.6% of Bhutan’s children are exposed to at least one climate hazard, with drought the most widespread threat (85.68%), raising alarms for health, water, and protection systems. Floods & Housing Safety: Torrential rain displaced 41 families in Phuentsholing after the Amochu Housing Colony was hit by debris-laden flooding; officials say the Amochhu Temporary Shelter was never meant to be permanent and won’t be rebuilt. Disaster Preparedness: Tsirang Dzongkhag launched a 204-page Disaster Management and Contingency Plan with evacuation mapping and guidance for response and recovery as climate hazards intensify. Roads Under a Warming Monsoon: Ministry data shows monsoon road closures now last far longer than before, with landslides, flash floods, and debris flows keeping highways shut for days. Gelephu–Tareythang Connectivity: The World Bank-funded road project is nearing DPR completion, with design and environmental assessments already largely done and wildlife-habitat protection planned along the alignment. Energy & Fuel Debate: Bhutan’s Department of Trade says it won’t import E20 soon, citing storage-tank contamination risks; India’s petroleum ministry denies any E20 offer was made, sparking a public dispute. Biodiversity & Nature: A rare Himalayan plant (Cyananthus hookeri) was rediscovered in Arunachal after 158 years, highlighting the Eastern Himalayas’ still-mysterious biodiversity. Finance & Resilience: Bhutan Insurance received earthquake-related claims worth Nu 5.34 million after the June 7 quake, while BDBL and BIL revised lending rates affecting households and farmers.

E20 Fuel Row: Bhutan’s Department of Trade says it is not importing India’s E20 petrol, citing ethanol’s water-absorbing nature and concerns that Bhutan’s older underground storage tanks may not prevent contamination and fuel quality issues. Energy Strategy: Bhutan reiterated it will prioritise green hydrogen over CNG long-term, pointing to the lack of domestic gas and the high cost of building an entirely new import and refuelling system. Climate & Disasters: Phuentsholing faces rising flood and landslide risk as increasingly intense rainfall—linked to climate change—drives debris-heavy disasters along the Amochhu River; authorities also say there’s no plan to reconstruct flood-damaged Amochhu temporary shelters. Road Resilience: New ministry data shows monsoon road closures now last far longer than before, with landslides and flash floods keeping highways shut for days while repair budgets struggle. Biodiversity Under Pressure: A hydropower project in Arunachal Pradesh near the white-bellied heron received “in principle” forest approval, with critics warning compensation afforestation far away won’t help the species. Children & Climate Risk: UNICEF reports nearly nine in 10 Bhutanese children are exposed to at least one climate hazard, with drought the most widespread threat. Clean Power Boost: ADB approved funding for Bhutan’s solar expansion—310 MW across three projects—supporting grid connection and green jobs training. Waste & Recycling: Reverse vending machines in Gelephu, Paro and Phuentshogling are collecting millions of plastic bottles and cans, paying users and reducing litter.

Flood & Landslide Watch (Phuentsholing): Intensifying rainfall linked to climate change is raising flood and landslide risks along the Amochhu (Toorsa) River, with officials saying the recent disaster was driven mainly by a massive landslide and debris flows—not just river flooding. Disaster Housing Policy: Government says the Amochhu Temporary Shelter was only a COVID-era emergency measure and will not be reconstructed, citing deterioration, recurring floods, and fire hazards. Biodiversity Under Pressure (Arunachal): A hydropower project in Arunachal Pradesh received “in principle” forest approval despite concerns for the critically endangered white-bellied heron, with critics calling compensation afforestation far from the habitat. Clean Energy Push (Bhutan): The ADB approved a $160m loan for Bhutan’s solar expansion—310 MW across three projects—using a first private-majority public-private partnership model and new training support for green jobs. Climate Risk for Children: UNICEF reports nearly 9 in 10 Bhutanese children face at least one climate hazard, with drought the most widespread risk. Waste & Recycling: Reverse vending machines in Gelephu, Paro and Phuentshogling have recovered over 7 million containers, paying residents for returned bottles and cans. Monsoon Roads & Connectivity: Bhutan’s monsoon road closures are lasting far longer than before, driving a rising repair bill and prolonged disruptions for communities. Fuel Transition Reality Check (E20): Bhutan says it will not import E20 petrol from India soon, citing concerns about ethanol absorbing moisture and risks to fuel quality given older storage tanks. Local Heritage to Market (GI Products): Bhutan launched its first four registered Geographical Indication products—Bumthang Yathra, Bumthang Honey, Dhur-Tadingang Gontho, and Merak-Sakteng Zoetey—to protect authenticity and boost rural livelihoods.

Solar Push: The ADB approved a $160m loan for Bhutan’s solar expansion—310 MW across Wobthang (120 MW), Pedseling (40 MW) and Dramthang (150 MW)—with new transmission lines to link the farms to the national grid. Climate Risk for Kids: UNICEF reports nearly 9 in 10 Bhutanese children face at least one climate hazard, with drought the biggest threat (85.69%), alongside fire and severe flooding risks. Wildlife Under Pressure: A Bumdeling Wildlife Sanctuary rescue found an Asiatic black bear trapped in a wire snare; officials sedated it, removed the snare, treated the wound, and released it back to the wild. E20 Fuel Debate: Bhutan says it won’t import India’s E20 petrol for now, citing high risk of engine issues tied to ethanol’s moisture-absorbing storage challenges and concerns about old fuel tanks. Recycling That Pays: Reverse vending machines in Gelephu, Paro and Phuentshogling are collecting millions of plastic bottles and cans, paying users (Nu 1 per bottle, Nu 2 per can) and helping cut litter. Monsoon & Food Security: A dry monsoon outlook for the HKH region is raising crop-loss fears, especially for farmers relying on monsoon rains. Local Capacity Building: Bhutan’s first PhD graduates in Climate Studies have completed their programmes, focusing research on climate impacts on food systems and climate-resilient farming.

E20 Fuel Standoff: Bhutan says it won’t be importing E20 petrol from India, warning old underground storage tanks and ethanol’s water-absorbing nature could trigger major engine issues. Clean Energy Push: The ADB approved a $160m loan for Bhutan’s solar expansion—310 MW across Wobthang, Pedseling and Dramthang—plus grid transmission upgrades. Climate Risk for Kids: UNICEF reports 89.6% of Bhutanese children face at least one climate hazard, with drought the biggest threat. Monsoon Threats to Food: A dry monsoon forecast is raising crop-loss worries across South Asia, including Bhutan’s farming communities. Wildlife Under Pressure: Reports highlight poaching and habitat loss pushing elephants into plains, intensifying human-elephant conflict. Recycling Incentives: Reverse vending machines in Gelephu, Paro and Phuentsholing have recovered over 7 million recyclable containers, paying users in cash. Wildlife Rescue: A trapped Asiatic black bear was safely freed from a wire snare in Bumdeling Wildlife Sanctuary. Local Climate Capacity: Bhutan’s first PhD graduates in Climate Studies have completed programmes at the College of Natural Resources.

Climate & Food Security: A dry monsoon outlook for the Hindu Kush Himalaya region is raising alarms for Nepal, India, Bhutan and Pakistan, with experts warning that even fewer rains can still mean worse floods and landslides from short extreme bursts. Energy Transition & Fuel Storage: Bhutan’s stance on E20 petrol spotlights a less-discussed risk—ethanol blends can absorb moisture in storage, potentially destabilizing fuel before it reaches vehicles. Child Climate Risk: UNICEF reports nearly 9 in 10 Bhutanese children face at least one climate hazard, with drought the biggest threat, alongside smaller but serious risks from fire and severe flooding. Renewables Push: The ADB approved $160m to expand Bhutan’s solar by 310 MW through new public-private partnerships, with transmission upgrades to connect farms to the national grid. Wildlife Under Pressure: Reports from the region link elephant movement into plains to poaching, habitat loss and degraded forests—fueling human-elephant conflict. Circular Economy: Reverse vending machines in Bhutan’s towns are collecting millions of plastic bottles and cans, paying users and reducing litter—while calling for stronger policy to make recycling stick. Disaster Preparedness: JICA reaffirmed support for Bhutan’s climate resilience, including better meteorological observation, forecasting and flood warning systems. Biodiversity & Wildlife Rescue: A trapped Asiatic black bear was safely rescued from a wire snare in Bumdeling Wildlife Sanctuary and returned to the wild. Local Climate Capacity: Bhutan’s first PhD graduates in Climate Studies have completed research on climate impacts on food systems and resilient farming. Governance & Data: Bhutan is preparing for its first fully digital Population and Housing Census in 2027 using electronic interviews.

Climate & Agriculture: A new Hindu Kush Himalaya “dry monsoon” outlook for 2026 is raising alarms for farmers across Nepal, India, Bhutan and Pakistan, warning that even with lower overall rainfall, bursts of extreme rain plus heat and water stress could still trigger floods, landslides and crop losses. Renewables Push: Bhutan has secured ADB funding for a 310 MW solar expansion through three projects (Wobthang 120 MW, Pedseling 40 MW, Dramthang 150 MW), with transmission upgrades to link power to the national grid and support for green jobs. Wildlife Under Pressure: Reports from Bumdeling Wildlife Sanctuary highlight an Asiatic black bear rescued from a wire snare, while another account links elephant movement into plains to poaching, shrinking habitat and forest degradation—fueling human-wildlife conflict. Circular Economy: Reverse vending machines in Gelephu, Paro and Phuentshogling are collecting millions of plastic bottles and cans, paying users in cash and recovering over 7 million containers nationwide since 2024. Disaster Resilience: JICA says it will keep backing Bhutan with stronger disaster preparedness and climate resilience, including improved meteorological observation, forecasting and flood warning systems for Paro and Thimphu river basins. Energy Infrastructure Skills: DGPC, BPC and South Korea’s Hyosung signed an MoU to strengthen maintenance and training for gas-insulated switchgear, aiming to boost reliability of Bhutan’s power transmission and substations. Local Climate Expertise: Bhutan’s first PhD graduates in Climate Studies have received certificates from the College of Natural Resources, with research spanning climate impacts on food systems and climate-resilient farming. Tourism & Border Town Branding: The Phuentsholing Thromde Enhancement Programme has started a destination branding and digital tourism push to reposition the border hub as a clean, safe, experiential destination.

Wildlife Rescue: A trapped Asiatic black bear was safely freed from a wire snare in Bumdeling Wildlife Sanctuary after forestry teams sedated it, removed the snare, treated its wound, and returned it to the wild—an urgent reminder of how dangerous snares are for Bhutan’s wildlife. Climate Transparency: UNFCCC reported record participation as 37 countries submitted their first Biennial Transparency Reports, boosting visibility of climate progress under the Paris Agreement. Circular Recycling: Reverse vending machines in Gelephu, Paro and Phuentshogling are collecting millions of plastic bottles and cans, paying users (Nu 14M total so far) and recovering over 7 million containers nationwide—though the operator says stronger policies are needed to make recycling truly sustainable. Glacier Protection Push: A new UN resolution urges action for glacier preservation, with Bhutan listed among co-sponsors—linking cryosphere protection to broader resilience goals. Disaster-Ready Planning: A geotechnical study under a disaster-resilient infrastructure project is guiding safer, climate-informed urban growth in Phuentsholing, supported by UNDP and CDRI, with early warning improvements planned for key areas. Local Climate Expertise: Bhutan’s first PhD graduates in Climate Studies have received certificates from the College of Natural Resources, with research spanning climate impacts on food systems and resilient farming. Energy Reliability: DGPC, BPC and South Korea’s Hyosung signed an MoU to strengthen maintenance and technical capacity for gas insulated switchgear, supporting more reliable hydropower transmission.