1.1.Introduction

Bhutan is located between two biogeographical realms, the Palearctic of temperate Euro-Asia and the Indo-Malayan of the Indian subcontinent. As a result of this location, Bhutan hosts a large number of endemic species and possesses very rich biodiversity. The biomes in Bhutan stretch from subtropical in the south through temperate in the central interior to an alpine zone in the north. Despite very limited inventories conducted, over 165 species of mammals, and more than 770 species of birds have been identified already.

Within Bhutan's borders, one can find more than 60 percent of the species that are endemic to the Eastern Himalayas. In addition, Bhutan's rich flora includes more than 50 species of rhododendrons and more than 300 species of medicinal plants. Few countries can match Bhutan’s biodiversity, and even fewer have taken such strong steps to ensure the conservation of their biodiversity (Reid, 1997).
 
 

Table 1: Key Statistics

1.2 Challenges

Bhutan's isolated location, late start in development and a conservation ethic have shielded the country from many of the detrimental effects of poorly-planned or haphazard development. As a result, while most of the Himalayan region has seen its natural resource base severely compromised through deforestation, soil degradation, erosion and pollution, Bhutan's natural patrimony of extensive and varied forests, limited yet fertile and productive farmland, and pristine water and air remains largely intact.

The Royal Government of Bhutan (RGoB) faces new challenges as a result of opening the country to economic development. Despite some threats, we have made vast improvements in the quality of life as a result of good health and other welfare facilities. Threats to the continued integrity of Bhutan's natural resource base are increasingly being felt from a variety of "developmental" sources, which include:

• infrastructure development
• industrial expansion
• increasing urbanization
• growth of foreign tourism
• compromising land-use management practices
• a high population growth rate
• employment shifts
• changing consumption patterns and
• introduction of new technologies

As a result of the development process industries have been growing rapidly in Bhutan. While industrialization is necessary to boost economic growth and improve the living standards of the Bhutanese people, the introduction of appropriate legislation, awareness, and establishment of environmental codes of practices are necessary to mitigate their negative impacts. 

1.3. Environmental organization

The National Environment Commission (NEC) is a high level government body which formulates environmental policy, sets environmental standards and legislation and ensures the use of instruments such as environmental impact assessments. The NEC works closely with line ministries and donor organizations.

The NEC is in the process of setting a consolidated, strategic, multi-sectoral framework for the environment.

The NEC is empowered to meet its long-term objective of defining policies, programs, plans and actions whereby the sustainability of natural resources will be fully integrated into every aspect of Bhutan's social and economic development. The Commission also monitors the impact of development on the environment and aims to put in place the necessary controls, regulations, mechanisms and incentives in the private/public sectors to achieve sustainable development through the judicious use of natural resources. The coordination of cross-sectoral programs and the implementation of policies and legislation are important mandates of the Commission. The mandate of the NEC is implemented by the National Environment Commission Secretariat (NECS).