Renewable Energy Cooperation With UAE Could Accelerate Bhutan's Green Economy

Relations between Bhutan and the UAE are described as strong and expanding, with Tshering Tobgay highlighting rising cooperation prospects in sustainability, renewable energy, trade, and investment. Speaking during the World Governments Summit (WGS) 2026, the Prime Minister emphasised that both countries have broad room to build joint projects in vital economic and environmental sectors.

The Prime Minister noted that greater economic integration is a priority for Bhutan, especially with Gulf partners. "We need to do more in terms of trade and investments," he said, stressing that deeper engagement with the UAE can support Bhutan’s growth strategy, while also contributing to the Emirates’ ambitions in clean energy and technology.

Tobgay underlined that Bhutan’s rivers, which flow swiftly through steep valleys, are a core strategic asset. "We can generate clean, green, renewable hydropower, and that energy can be used to produce clean, green hydrogen," the Prime Minister said. He added that these natural advantages create conditions for long-term collaboration with partners such as the UAE.

Explaining future uses, Tobgay said green hydrogen can become feedstock for "green fertiliser and green fuel, particularly green aviation fuel," while hydropower can also power "green data centres and green AI computing." "Technology is very important, and it all starts with the generation of green energy," he explained, linking Bhutan’s resources to global digital and industrial needs.

The scale of Bhutan’s hydropower resources was a central theme in Tobgay’s remarks. He stated that Bhutan has a renewable energy potential of almost 40 gigawatts. "Right now, we have 3,500 megawatts, and we have plans to generate another 20,000 megawatts in the next 15 years," he said, signalling room for substantial foreign investment.

Tobgay pointed out that maintaining Bhutan’s environmental achievements will rely partly on international collaboration. "If you want to help us sustain this track record, the UAE can invest in developing renewable energy, and once renewable energy is developed, we can work together in downstream industries that use renewable energy," he said, positioning Bhutan as a producer of low-carbon industrial inputs.

Bhutan UAE cooperation in tourism, conservation and carbon markets

Environmental stewardship formed another key pillar of Bhutan’s pitch to partners. The Prime Minister stressed that Bhutan remains "a biodiversity hotspot, with 70 percent of our country under forest cover. We are a carbon negative country. We sequester five times more carbon than we emit," he said, noting that this record can support ventures in nature-based solutions.

Tourism and agriculture were outlined as further channels for cooperation with the UAE. "Our tourism model is high value and low impact. We invite guests from across the world to enjoy our unique culture and environment," he said, encouraging more visitors from the Emirates and investment in Himalayan wellness projects, as well as "trading in carbon credits and organic farming."

The Prime Minister also drew attention to people-to-people links and policy exchange. "The relationship between our peoples is also strong and continues to improve and grow," he added. Discussing WGS 2026, Tobgay said the event enables leaders to review governance ideas, stating, "While here, we also get to talk about the future of government, the vision of the leaders, and how they view the future of governance."

Tobgay described the summit as a learning platform that benefits Bhutan’s own planning. "I take back a lot of lessons. I learn a lot," he said, explaining that the meetings allow him to present Bhutan’s experience. "I share Bhutan’s story, our development story, and the lessons that we have learned in our development journey," linking these insights to growing cooperation with the UAE.

With inputs from WAM