Funding Windows of the Bhutan Trust Fund for Environmental Conservation
The Bhutan Trust Fund for Environmental Conservation (BTF) supports environmental conservation, climate resilience, and sustainable development in Bhutan through four dedicated funding windows:
- Large Grants Window
- Small Grants Window
- Advocacy Grants Window
- Program-Related Investments (PRI) Window
These funding windows are designed to support a wide range of stakeholders from communities and civil society to government agencies and private sector actors at different scales and with different financing approaches.
All projects financed through BTF’s endowment resources must comply with the Fund’s Environmental, Social, Gender, and other relevant safeguards. Proposals are expected to demonstrate responsible environmental management, social inclusion, and gender responsiveness.
To ensure transparency and accountability:
- All funded projects are monitored by the Monitoring and Evaluation (M&E) Unit of the BTF Secretariat
- Projects are subject to audit by the Internal Audit Unit or external auditors
- Periodic reporting and compliance reviews are mandatory for all funding windows
Large Grants Window
The Large Grants Window is the flagship funding mechanism of BTF, with an annual allocation of approximately Nu. 120 million. It supports high-impact, transformative projects aligned with BTF’s four key objectives:
- Preserving and conservation of biodiversity
- Enabling human-wildlife coexistence
- Mitigation and adaptation to climate change
- Addressing adverse impacts of development on the environment
- Up to Nu. 15 million per project (subject to Board approval)
- Project duration: up to 3 years
- One-time no-cost extension may be granted (up to one-third of original duration) under exceptional circumstances
Bhutanese agencies, civil society organizations, academic institutions, private sector entities, and individuals with innovative environmental initiatives.
Step 1: Submission of Concept Note
Applicants submit a Concept Note outlining the project rationale, objectives, expected outcomes, and estimated budget to info@bhutantrustfund.bt or contact details shared during the formal call for proposal announced through the mainstrean and social media. Concept Note Template Attached
Step 2: Secretariat Screening & Due Diligence
The Environment and Climate Change Services (ECCS) of the BTF Secretariat conducts an initial screening and due diligence assessment to verify eligibility, alignment with BTF priorities, and completeness of the submission.
Step 3: Technical Review (ITAP)
Eligible Concept Notes are reviewed by the Independent Technical Advisory Panel (ITAP), comprising qualified national experts and practitioners from relevant fields. The Panel consists of five members, including one representative from the BTF Secretariat.
Step 4: Pitch & Shortlisting
Applicants with promising Concept Notes may be invited to present or pitch their project ideas to the ITAP. Based on the technical assessment and presentations, shortlisted applicants are recommended for full proposal development.
Step 5: Proposal Development
Shortlisted applicants prepare a detailed project proposal Project Proposal Template Attached. Where necessary, a Project Formulation Grant (PFG) (PFG Template Attached) of up to Nu. 150,000 may be provided to support proposal development, including technical studies, consultations, and planning.
Step 6: Final Review & Approval
The final project proposals undergo detailed technical and financial appraisal before being submitted to the Board of Trustees for final approval.
The BTF Secretariat encourages innovative, collaborative, and results-oriented proposals that deliver long-term environmental and social benefits for Bhutan.
Step 7: Funding Agreement
Upon the approval of the projects by the Board of Trustees, Project Partners are invited to the BTF Secretariat to sign the Large Grant Funding Agreement prior to project implementation.
Step 8: Fund Release
Upon signing of the Funding Agreement, project partners may request the first semiannual fund along with the procurement plan for the requested period request as per the approved workplan in the project document to implement the activities of the first semiannual workplan.
Step 9: Progress Reporting
Project partners are required to submit semmiannual progress report for the first six months along with release request for the next/subsequent six months. The progress reports includes technical progress report, financial progress report and procurement report which will be reviewed by the progress review committee in the BTF Secretariat. On the satisfactory progress observed by the progress review committee, the second release will be process and released for implementation of the activities for subseauent semiannual period. Same progress report and release request process will be followed until the project is complete.
Step 10: Closure
Upon completion of the project activity implementation, Project partners are required to submit Project Completion Report (PCR) and Any additional reports or deliverables required by the BTF Secretariat for project closure.
Project Formulation Grant (PFG)
The Project Formulation Grant (PFG) refers to a financial support mechanism provided to proponents for the preparation of a full project proposal following the endorsement of the Concept Note by ITAP. The PFG enables proponents to undertake necessary studies, consultations, and documentation required for developing a comprehensive project proposal Upon completion of the PFG activities, the proponent must submit a PFG Completion Report in the prescribed format.