TLIF in Bhutan

Stage 1/6: Country Scoping & Readiness 

Country Context  

Situated in the Himalayas, Bhutan encompasses diverse landscapes, ranging from rugged mountains to sub-tropical forest and bamboo jungles, and supports one of the highest levels of forest cover in Asia. The country is home to 131 bengal tigers,¹ whose habitats span a network of protected areas, biological corridors, and forested landscapes that also deliver critical ecosystem services, including clean water, carbon storage, and climate regulation. Despite strong conservation commitments, human-wildlife conflict remains one of the most pressing challenges facing both rural communities and tiger landscapes, with crop losses ranging from 19% to 43% in affected areas. Communities living alongside these landscapes depend primarily on agriculture and small-scale enterprise, making access to finance essential for developing sustainable livelihoods and long-term conservation success. Other challenges include fragmented value chains and outmigration of skilled youth. 

Tiger Landscapes Investment Facility 

TLIF conducted a scoping mission to Bhutan in April–May 2026 to assess financing gaps, enterprise needs, and barriers to reaching biodiversity-positive MSMEs across Bhutan’s tiger landscapes. TLIF aims to mobilize domestic private sector investment into conservation-friendly businesses operating in and around these landscapes. 

Priority Sectors  

The April-May 2026 scoping mission identified three enterprise segments with strong potential across Bhutan’s tiger landscapes. Human-wildlife conflict mitigation, particularly the financing of fencing solutions, can reduce crop and livestock losses while protecting tiger prey populations against retaliatory snaring. Rural agricultural value chain development, including processing, packaging, and transportation, can reduce post-harvest losses and support import substitution opportunities, thereby enhancing food sovereignty. In parallel, scaling cottage industries into small enterprises, targeting both domestic and export markets, offers potential for durable and conservation-aligned economic growth. 

Approach  

Across Bhutan’s tiger landscapes, rural communities and small entrepreneurs often lack access to credit and the technical assistance required to scale-up, despite operating viable businesses with conservation potential. TLIF works with local financial institutions to unlock finance for these enterprises, combining risk-sharing mechanisms with targeted technical assistance so that businesses can grow while contributing to tiger landscape conservation.  

Status

A scoping study has been completed in Bhutan, which has been instrumental in adapting the facility to the Bhutan context. Two financial institutions – with different mandates that fit the target segments of TLIF – have been identified and bilateral negotiations regarding risk-sharing mechanisms are ongoing. 

Sources  

[1] Bhutan for Life (2022), National Tiger Survey report 2022. 
[2] Global Tiger Forum (2024), Global Tiger Protected Area Network Compendium 2.0.