Photo: UNDP

Bhutan Sustainable Low-emission Urban Transport Systems


The project is facilitating low carbon transition in Bhutan's urban transport sector by promoting wider uptake of low-emission vehicles, in particular electric vehicles, as the preferred mode of transport. The project in partnership with local financial institutions and regulator, is designing and implementing an innovative financial support mechanism and financial product business model to ensure its sustainability and reliability and further growth. The ambition and the expected scale of market transformation is to ensure by the end of the 3 year project, the fleet of electric vehicle taxis in Bhutan increases by four-folds i.e. from 99 to 399 in 2021. 

The project forms an integral part of a broader effort by the Royal Government of Bhutan to significantly reduce fossil fuel import and its use to reduce greenhouse gas emissions in the transport sector in line with the National Transport Policy, the Low-emission Development Strategy, and the Avoid-Shift-Improve Framework.

Contribution to the Sustainable Development Goals 

In 2016, Bhutan integrated the 17 Sustainable Development Goals (SDGs) into its 12th Five Year Development Plan. The Government strives to achieve all the SDGs for the achievement of the Gross National Happiness with a priority focus on SDG 1, SDG 13, and SDG15. In 2010, the Government adopted the Sustainable Transport Goals as part of the voluntary Bangkok 2020 Declaration agreed at the 5th Regional Environmental Sustainable Transport Forum. The project will develop solutions, financially and technically support the shift to energy efficiency and transform clean energy and zero-carbon development. 

Related Materials 

Medium Story: Keeping Bhutan Carbon Neutral



Project start date:

October 2018

Estimated end date:

September 2022

Focus area:

  • eradicate poverty in all its forms and dimensions
  • Project office:

    UNDP in Bhutan

    Implementing partner:

    Ministry Of Communications

    Full project information  

    Funding Support by

    Donor name

  • United Nations Development Pro
  • Government Of Bhutan
  • Global Environment Fund Truste
  • Amount contributed


    Delivery in previous fiscal year

    2021 $342,472

    2020 $782,783

    2019 $1,127,731

    2018 $12,721

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