As Nim Dorji, a farmer in Bhutan, ran his hands over bushes of Rhododendron, he reminisced about how his family had always used rhododendrons for incense during rituals and had not known until recently that it could be used for other purposes. Being dependent on dairy for income, the yak herding community in Dagala, a gewog (village block) within Thimphu district, western Bhutan were happy to have a new stream of earnings that complemented their lifestyle.
“For us, Balu, powdered rhododendronwas only used in rituals. Now we see them as part of our livelihoods too”, shared Nim.
This is not just a story of one community. It is part of Bhutan’s broader transition toward a bioeconomy; a future where biodiversity is conserved and at the same time nurtured into opportunities, resilience, and innovation.
A journey through ABS, innovation, and community voices
What started out as a theoretical market assessment of Bhutan’s priority Nature-based Solutions' products revealed something much deeper as I went for on-field coordination for its video documentary. The task seemed straightforward at first – mapping products, enterprises, and opportunities. Being on the field showed me how the products were not just commodities, but stories of how biodiversity could be transformed into sustainable futures, and how communities could be empowered through fair partnerships.
For decades, the National Biodiversity Centre (NBC) has safeguarded Bhutan’s natural heritage and has recognised that conservation cannot succeed if communities are excluded. The Access and Benefit Sharing (ABS) regime became the bridge ensuring that when biological resources are used in enterprises, communities benefit fairly, making it both a legal framework and a moral principle. In Bhutan’s context, where rural families are custodians of biodiversity, ABS is particularly important because it connects traditional knowledge with modern enterprise.
NBC’s leadership has been crucial in moving ABS from policy to practice. Community groups were formalised, governance documents translated into Dzongkha, and enterprises mentored to build trust with suppliers. In this way, ABS became not just an agreement but a lived reality. Today, enterprises even use the ABS logo as their unique selling point, signalling to customers that their products are ethically sourced and community driven.
Bhutan’s biodiversity is abundant with rare species and rich ecosystems, but it is also fragile and vulnerable to climate change and unsustainable use. Its future depends on whether people see it not just as something to protect, but as something that creates opportunities. When biodiversity is linked to livelihoods through eco-tourism, organic farming, medicinal plants, or natural product enterprises, communities have stronger reasons to care for it. Examples like lemongrass oil production or community forestry show how protecting nature can also bring income, turning conservation into a shared benefit. Bhutan’s biodiversity can become both a source of resilience and a foundation for development.
For this to really work, benefits must reach the communities on the ground. Without fair benefit-sharing, communities risk being excluded from the value chains built on their own resources. This is where ABS comes in. It connects traditional knowledge with modern enterprise, rural cooperatives with national markets, and local stewardship with global demands for ethical products.
As Tshering Deki, founder of KDY Production reflected, “We want to create businesses that last, not just survive. ABS gives us a way to do that, by building on what Bhutan already has; biodiversity, and community.”
Voices from across Bhutan
Bhutan’s bioeconomy journey is ultimately shaped by the people behind the products – the farmers, women-led groups, youth entrepreneurs, and community cooperatives who are transforming traditional knowledge into sustainable livelihoods. Across the country, communities are rediscovering the value of local biodiversity, not only as part of their cultural identity, but also as a source of income, resilience, and opportunity. What was once used only for rituals, household remedies, or subsistence is now finding new pathways into wellness products, herbal teas, essential oils, and natural supplements.
These voices from across Bhutan reflect a shared vision – that conservation and economic development can go hand in hand. From highland yak-herding communities harvesting rhododendron sustainably, to women’s groups processing mugwort and black turmeric, local people are becoming active participants in building Bhutan’s emerging bioeconomy. Their experiences demonstrate that when communities are supported through fair partnerships with eight access and benefit sharing contract signed, and enterprise strengthened, biodiversity becomes more than a natural asset – it becomes a pathway toward green, inclusive, and resilient economic development.
- Thimphu - KDY Production: Sourcing Rumex nepalensis from over 300 farmers in Mewang Gewog, an administrative unit in western Bhutan, to develop herbal teas, capsules and tinctures.
- Samtse - Jinlab Agro Products: Refining Shilajit resin and developing kiwi-based products with community suppliers.
- Pemagatshel - Kuenthuen Phendey community group supplying Black Turmeric (Curcuma caesia) to Menjong Sorig Pharmaceutical Corporation Limited in Thimphu expanding traditional medicines into wellness supplements.
- Trongsa – Kingdom Essences: Sourcing Bhutan pine (Pinus wallichiana) from Kaba Naktshel Menrig Rangzhin Detshen, distilling essential oil from what was once discarded as waste during timber harvest.
- Wangdue Phodrang – Ruechekha Khempa Men ghi group supplying mugwort (Artemisia vulgaris) to Mugwort Solutions in Thimphu for producing foot-soaking herbal bags.
Collectively, these enterprises highlight how biodiversity supports communities while strengthening the economy.
Community gains and conservation wins
Beyond income generation, the initiative has also become a platform for learning. Rural community members are not only supplying resources but are also being guided on why conservation matters, how careful harvesting protects ecosystems, and how sustainable practices secure long-term benefits for their families. These conversations have shifted perspectives. Biodiversity is no longer seen only as something to use, but as something to steward for future generations.
“We understand now that if we take care of nature, nature will take care of us,” Karma, a community member explained.
The tangible outcomes are already visible on the ground:
- Five new community-based resource groups have been formalised with governance documents translated into Dzongkha, ensuring predictable supply and fair benefit sharing.
- Eleven products were reformulated, branded, and launched, with packaging redesigned to signal ethical sourcing.
- Enterprises strengthened their capacity through incubation and mentoring, addressing supply chain gaps and building clearer growth pathways.
- Bhutan showcased nine products at a regional event in Kathmandu, receiving positive feedback and exploring collaborations with Nepali partners.
- Women’s participation is high with up to 90% in some value chains. Premium procurement arrangements channel income back to communities.
- Sustainable harvesting protocols, low-energy processing (solar drying), and circular practices, such as composting by-products, reduce ecological pressure, and support climate resilience.
These outcomes show how ABS, when combined with innovation support, can move from pilot projects to institutionalised benefit flows.
A blueprint for Nature-Based Solutions
Bhutan’s commitment to bioeconomy and ABS has further been strengthened by ICIMOD’s Himalayan Resilience Enabling Action Programme (HI-REAP). Through the Nature-based Innovation Challenge, enterprises gained a platform to test new ideas, strengthen supply chains, and showcase products that embody the principles of ABS.
Through HI-REAP, these enterprises received incubation support, mentoring, and opportunities to showcase their products regionally. The NbS Innovation Challenge was not just a competition, it was a reaffirmation of Bhutan’s vision that biodiversity can be the foundation of a resilient bioeconomy.
Looking ahead
Bhutan’s young population is central to this future. With stronger certification, branding, and market linkages, Bhutan can position ‘Brand Bhutan’ in global wellness markets. The vision is ambitious. By 2030, enterprises like Bio Bhutan aim to grow six-fold, reaching Ngultrum (Nu) 150M in turnover. More importantly, the bioeconomy offers a pathway where livelihoods are created not at the expense of nature, but in harmony with it.
The story of Bhutan’s bioeconomy is one of transformation. Rich biodiversity, once vulnerable to over-extraction, is now being harnessed through ABS contracts, community partnerships, and innovative enterprises. Rural women and youth are at the forefront, turning plants, herbs, and resins into products that carry Bhutan’s ecological heritage into wider markets.
NBC’s leadership shows how policy, innovation, and community voices can come together to build a resilient economy. As Mani Prasad Nirola, Deputy Chief Biodiversity Officer at NBC reflected, “This is how biodiversity becomes livelihood. This is how access becomes equity.”
Bhutan’s experience also holds regional relevance. As mountain nations across the Himalayas seek sustainable pathways, Bhutan’s bioeconomy offers a living example of how biodiversity can be linked to livelihoods, prosperity, and resilience. It is a blueprint for a future where nature and people thrive together.
