𝐂𝐚𝐫𝐛𝐨𝐧-𝐍𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐒𝐭𝐚𝐭𝐮𝐬 𝐅𝐚𝐜𝐞𝐬 𝐑𝐢𝐬𝐢𝐧𝐠 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 𝐀𝐬 𝐄𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞

…𝒍𝒂𝒕𝒆𝒔𝒕 𝒆𝒏𝒗𝒊𝒓𝒐𝒏𝒎𝒆𝒏𝒕𝒂𝒍 𝒔𝒕𝒂𝒕𝒊𝒔𝒕𝒊𝒄𝒔 𝒓𝒆𝒗𝒆𝒂𝒍 𝒓𝒊𝒔𝒊𝒏𝒈 𝒇𝒐𝒔𝒔𝒊𝒍 𝒇𝒖𝒆𝒍 𝒖𝒔𝒆 𝒂𝒏𝒅 𝒇𝒂𝒍𝒍𝒊𝒏𝒈 𝒈𝒓𝒆𝒆𝒏 𝒕𝒂𝒙 𝒓𝒆𝒗𝒆𝒏𝒖𝒆, 𝒓𝒂𝒊𝒔𝒊𝒏𝒈 𝒄𝒐𝒏𝒄𝒆𝒓𝒏 𝒐𝒗𝒆𝒓 𝒕𝒉𝒆 𝒄𝒐𝒖𝒏𝒕𝒓𝒚’𝒔 𝒂𝒃𝒊𝒍𝒊𝒕𝒚 𝒕𝒐 𝒔𝒖𝒔𝒕𝒂𝒊𝒏 𝒊𝒕𝒔 𝒄𝒂𝒓𝒃𝒐𝒏-𝒏𝒆𝒈𝒂𝒕𝒊𝒗𝒆 𝒔𝒕𝒂𝒕𝒖𝒔.

By Kinzang Lhamo

Bhutan’s reputation as a carbon-negative nation is facing renewed pressure as carbon emissions rose to 3.97 million metric tons in 2024, while revenue from green taxes fell to Nu 814 million from Nu 992 million in 2023, according to the Annual Environmental Accounts Statistics 2025. The simultaneous rise in emissions and decline in environmental tax collection has raised concern over whether Bhutan can sustain its global standing as a climate leader.

Despite remaining one of the few carbon-negative countries, Bhutan’s per capita emissions climbed to 5.07 tons in 2024, reversing the brief decline seen the previous year. The increase is largely driven by higher fossil fuel consumption, expanding urbanization, rapid industrial growth, and a growing number of private vehicles. These trends are straining the country’s green credentials, long regarded as a global environmental model, and raise questions about how Bhutan can maintain its carbon-negative status amid growing energy demand.

Official data show that Bhutan imported more than 264,271 kiloliters of petrol and diesel in 2024, a sharp rise from earlier years. The transport sector remains the largest consumer of fossil fuels, as limited public transport options and slow adoption of affordable electric vehicles keep dependency high. Urban households and industries have also contributed to the energy burden through greater use of LPG, electrical appliances, and fuel-based systems. The growing demand for energy emphasizes the challenge of balancing economic development with environmental sustainability.

The government has acknowledged the challenge and emphasized that hydropower earnings are being reinvested to reduce reliance on imported fossil fuels.

“We are strategically reinvesting hydropower revenues to build a low-emission transport network and strengthen renewable energy capacity,” said the Ministry of Energy and Natural Resources (MoENR). “This includes expanding electric vehicle adoption and promoting clean fuels like hydrogen to reduce dependence on imported petrol and diesel.”

Even as the country exported record amounts of clean hydropower to India, it imported electricity during the lean winter months when river flows dropped. The seasonal shortfall highlights the vulnerability of the country’s hydropower-dependent energy system and the need for greater diversification of renewable sources such as solar and wind. Experts say that without wider adoption of alternative energy sources, the country could face recurring winter shortages, affecting both households and industries.

The Ministry stated that the newly introduced National Energy Policy 2025 provides a roadmap for achieving energy security, diversification, and self-reliance.

“The National Energy Policy 2025 lays out a clear framework for boosting domestic renewable energy, ensuring energy reliability year-round, and fostering public-private collaboration in the sector,” the ministry added.
Bhutan’s vast forests continue to absorb more carbon than the nation emits, keeping it carbon negative for now. However, experts warn that the narrowing gap between emissions and absorption could erode this balance if rising fuel consumption and weak enforcement of environmental taxes continue unchecked. They cite growing infrastructure development, increasing transport demand, and limited incentives for cleaner technologies as risks that could undermine the country’s long-term environmental goals.

To build domestic capacity, the government is also supporting the development of Renewable Energy Service Providers to strengthen technical expertise and accelerate project implementation.

“By empowering local renewable energy firms, we are enhancing technical skills, reducing winter electricity imports, and building a resilient, low-carbon economy for the future,” the ministry said.

For now, Bhutan continues to absorb more carbon than it emits, but the latest figures indicate that this balance is becoming increasingly fragile. Rising emissions, growing fossil fuel dependency, and declining green tax revenue suggest that maintaining the country’s carbon-negative status will require stronger policies and urgent action. The country’s environmental leadership, long admired worldwide, now depends on how effectively it can align economic growth with sustainability and climate responsibility.