𝐄𝐔 𝐀𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐁𝐚𝐜𝐤 𝐌𝐨𝐮𝐧𝐭𝐚𝐢𝐧 𝐇𝐚𝐳𝐞𝐥𝐧𝐮𝐭𝐬 𝐖𝐢𝐭𝐡 𝐔𝐒𝐃 𝟕.𝟗 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐄𝐪𝐮𝐢𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭

…𝒊𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒂𝒊𝒎𝒔 𝒕𝒐 𝒃𝒐𝒐𝒔𝒕 𝒔𝒖𝒔𝒕𝒂𝒊𝒏𝒂𝒃𝒍𝒆 𝒂𝒈𝒓𝒊𝒄𝒖𝒍𝒕𝒖𝒓𝒆, 𝒓𝒖𝒓𝒂𝒍 𝒍𝒊𝒗𝒆𝒍𝒊𝒉𝒐𝒐𝒅𝒔, 𝒂𝒏𝒅 𝒈𝒓𝒆𝒆𝒏 𝒆𝒄𝒐𝒏𝒐𝒎𝒚 𝒊𝒏 𝑩𝒉𝒖𝒕𝒂𝒏

By Kinzang Lhamo

In a major development for Bhutan’s foreign direct investment (FDI) landscape, Mountain Hazelnuts and the European Union (EU) marked a milestone USD 7.9 million equity investment on April 22, 2025. The funding, led by Mirova and Finnfund, is backed by the EU’s European Fund for Sustainable Development Plus (EFSD+) Carbon Sinks guarantee, signifying growing international confidence in Bhutan as a destination for sustainable and impact-driven investment.
The investment will support Mountain Hazelnuts in scaling up operations, strengthening value chains, and enhancing the livelihoods of thousands of rural farmers involved in its inclusive agroforestry model. The initiative aligns with Bhutan’s broader national priorities of climate action, rural development, and environmental sustainability.

Hazelnut cultivation contributes to carbon sequestration, reforestation, and biodiversity conservation- areas central to Bhutan’s identity as one of the few carbon-negative nations. Government officials and EU representatives at the event hailed the collaboration as a model for climate-smart and socially inclusive investment. They stressed the importance of public-private partnerships in transforming rural economies and addressing global environmental challenges.

“This investment showcases the EU’s Global Gateway strategy in action, mobilizing private capital to contribute to Bhutan’s green growth agenda,” said Franck Viault, representative of the EU Delegation to India and Bhutan.

A key enabling factor in de-risking the investment was the role played by the Royal Government of Bhutan, particularly through the Ministry of Agriculture and Livestock, which ensured policy alignment and regulatory support. Officials expressed hope that this successful model could encourage future investments in renewable energy, ecotourism, and digital agriculture.

Karma Tshering from the Policy and Planning Division of the Ministry of Agriculture and Livestock highlighted the importance of the initiative in informing national policy and investment frameworks. “What Mountain Hazelnuts has undertaken will help us frame our own investment framework and sectoral guidelines, especially as we aim to increase the sector’s contribution to GDP,” he said.

He added that the project offers a practical model for replication in other sectors, citing its impact on employment, environmental conservation, and rural value chain development. “The event was eye-opening from the ministry’s policy planning perspective. We will explore avenues for collaboration, especially in marketing, where we aim to support agencies including Mountain Hazelnuts,” he said.

From the corporate side, Dr. Sean Watson, CEO of Mountain Hazelnuts, reflected on the company’s journey, citing early-stage production challenges and the disruptions caused by the COVID-19 pandemic. Despite setbacks, including issues with pollinizer trees and varietal selection, the company remained committed to scientific problem-solving and community engagement.

“We had some challenges with our raw material production, but it was about persistence. With a sound scientific foundation, we could solve these problems. The nuts are starting to come,” said Dr. Watson.

He also emphasized the importance of building trust with local communities through consistent training and communication. “Because there were delays in fruiting, there were some frustrations. But I think that is finally turning now, and there is a positive understanding of what hazelnuts can bring,” he said.

The EU representative reiterated the bloc’s long-standing support for Bhutan’s agricultural transformation. “Our priority sectors in development cooperation with Bhutan include support to agri-food systems. We assist the Ministry of Agriculture and Livestock to modernize the sector for food security and export potential,” Viault said.

He noted that Mountain Hazelnuts’ work aligns with Bhutan’s national goals for agricultural modernization and enhances the country’s readiness to export high-value crops like hazelnuts. “This is our priority sector, so they were ticking the first box in EU-Bhutan cooperation,” he added.

At the community level, farmers such as Ngawang Choden, Hazelnut Tshogpa from Phosorong, Mongar, shared her experience with the project. “In 2011, I came to know about hazelnut cultivation through our Gup and volunteered to take part. I received training in the field, but at the time, I was unaware of the need to plant both male and female hazelnut trees. I planted the trees, but the fruits did not turn out well,” she said.

Technical support and knowledge-sharing have since helped farmers like Ngawang overcome initial hurdles. “After I learned that both male and female trees must be planted together, the fruits started growing well. My interest in hazelnuts kept growing, especially since I live in the upper land where hazelnuts thrive,” she added.

The project’s evolving success highlights the role of strategic investment, public-private collaboration, and knowledge transfer in building a resilient and green agricultural economy. It reinforces the value of evidence-based policy and strengthens Bhutan’s position as a hub for sustainable enterprise and rural innovation.