The Hidden Cost of Gross National Happiness: Bhutan’s Struggle Against Climate Displacement

By Eleez Omar

Bhutan is a country tucked in the Eastern Himalayas and is often praised as one of the world’s environmental success stories. The country is entirely carbon negative, meaning that its forests absorb more carbon dioxide than the nation emits. Bhutan has also committed itself to maintaining at least 60% forest cover and has become a symbol of sustainable development through its philosophy of Gross National Happiness. However, despite these achievements, Bhutan is a nation on the front lines of climate change.

Bhutan is growing more and more vulnerable to both extreme weather events and slow-onset climate change. This includes Glacial Lake Outburst Floods (GLOFs), flash floods, landslides, forest fires, droughts, and shifting rainfall patterns. Collectively, these hazards threaten livelihoods, infrastructure, food security, and entire communities.

Climate impacts are evidently becoming more severe, and this begs the question of what happens when people can no longer safely live where they have lived for generations.

Bhutan’s geography makes it particularly vulnerable to climate change. Much of the country consists of steep mountain terrain, fragile ecosystems, and remote settlements connected by limited or sporadic infrastructure. Agriculture, hydropower, and forestry remain essential parts of the economy, but they all depend on predictable weather and climate conditions.

Melting glaciers pose a grave threat, and with rising temperatures, glaciers across the Himalayas are beginning to retreat, creating larger glacial lakes. When these lakes burst, they release enormous amounts of water downstream in GLOFs. These floods are strong enough to destroy homes, roads, farmland, and energy infrastructure within mere hours.

Bhutan is also facing increasing numbers of landslides, flash floods, and irregular monsoon seasons. While major disasters attract national attention, smaller climate-related events often go unreported. Nevertheless, they gradually erode livelihoods and make life more difficult for rural communities. These types of cumulative impacts are frequently underestimated despite causing significant long-term damage.

Adaptation is No Longer Enough

For a long time, Bhutan has invested in climate adaptation measures through which the government has strengthened disaster preparedness, improved environmental protection, and developed national adaptation plans. However, adaptation alone may not be enough.

The concept of “loss and damage” refers to the impacts of climate change that remain even after adaptation efforts have been made. In other words, some consequences cannot be prevented. Homes might still be destroyed, livelihoods may still disappear, and communities might still be forced to relocate.

Due to these implications, climate displacement is growing more prevalent. Climate displacement occurs when environmental conditions force people to leave their homes either temporarily or permanently. Unlike traditional migration, climate displacement is often driven by necessity rather than choice.

In Bhutan, climate displacement is not yet occurring on the same scale as seen in some low-lying nations; however, warning signs are visible. Communities living near flood-prone rivers, unstable mountain slopes, or areas affected by water scarcity may eventually face relocation if conditions continue to worsen.

The Human Cost of Climate Change

Climate-related events currently result in average annual losses equivalent to 6.9% of Bhutan’s GDP, or approximately USD 169 million per year. Climate risks could reduce GDP growth by up to three percentage points by 2050.

However, the financial costs tell only one part of the story. Several non-economic losses are much harder to measure. This spans from mental health impacts, disruption of education, damage to cultural and spiritual sites, and the gradual erosion of social identity.

For many Bhutanese communities, particularly those in rural mountain regions, connections to a place are deeply intertwined with culture, religion, and history. Villages often contain temples, sacred sites, and cultural traditions linked to the surrounding environment.

When climate change threatens these places, it threatens more than physical property; it goes on to threaten a way of life. This aspect of climate displacement is often overlooked. Moving people is not simply a matter of providing a new house or rebuilding infrastructure elsewhere. It also involves preserving cultural identity and social cohesion. Once communities are uprooted, some losses may never be fully recovered.

The issue of climate displacement extends beyond Bhutan’s borders. Around the world, international law offers limited protections for people displaced by climate change. Unlike refugees fleeing conflict or persecution, climate migrants do not currently benefit from a clear legal status under international refugee law.

This creates uncertainty about how future cross-border displacement will be managed. Countries throughout the Himalayan region face similar challenges related to glacier melt, flooding, and environmental degradation. If climate impacts intensify, regional cooperation will have to become essential for managing displacement and protecting vulnerable populations.

Bhutan and Nepal also share a complicated history involving refugee movements. While climate-driven migration from Bhutan remains relatively limited today, future environmental pressure could test existing regional frameworks and raise difficult questions about responsibility and protection.

Looking Ahead

Despite being bogged down by these many challenges, it is clear that Bhutan remains committed to climate action. The country’s efforts to remain carbon-neutral and protect its forests go to show a level of environmental leadership rarely seen elsewhere. Yet, Bhutan’s experience also illustrates a profound injustice at the heart of climate change.

Countries that contribute the least to global emissions are often among the most vulnerable to climate impacts. Bhutan urgently needs greater support to prevent, minimize, and address climate-induced loss and damage. It calls for stronger monitoring systems, improved disaster preparedness, expanded climate financing, and, most importantly, international cooperation.

Ultimately, climate displacement in Bhutan is not only a national concern but a global challenge. As climate impacts intensify, protecting vulnerable communities will require greater international cooperation, investment, and recognition of those forced to move by environmental change.

The writer is a research and advocacy intern, covering climate displacement and South Asia at Displaced International.