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
Program-Related Investments (PRI) Window
The Program-Related Investments (PRI) Window of the is a blended finance mechanism designed to support environmentally and socially impactful projects that also demonstrate financial viability.
Unlike traditional grants, PRI provides soft financing support to eligible projects with clear business models and potential to generate returns, while delivering measurable environmental and social benefits. This approach aims to promote sustainability, innovation, and long-term financial recycling of conservation funds.
Under this window, financing is provided at a minimal interest rate and is structured to ensure affordability for proponents while enabling gradual repayment to the BTF after an agreed gestation period.
The PRI Window is intended to:
- Support economically viable green and conservation-oriented enterprises
- Encourage innovative financing models for environmental sustainability
- Strengthen private sector and community participation in conservation
- Enable recycling of funds for future environmental investments
The PRI Window is open to eligible Bhutanese:
- Private sector entities and enterprises
- Civil society organizations with income-generating models
- Cooperatives and community-based enterprises
- Relevant public–private partnership initiatives
- Other legally registered entities with viable financial proposals
Applicants must demonstrate both financial sustainability and positive environmental and social outcomes.
Interested applicants may submit proposals using the prescribed PRI Proposal Template.
Step 1: Submission and method
Applicants must submit:
- Completed PRI Proposal Template
- Detailed business plan and financial model
- Implementation and repayment plan
- Supporting legal and financial documents
Proposals should be submitted electronically to: <info@bhutantrustfund.bt>
Step 2: Technical Review (ITAP)
Eligible PRI proposals are reviewed by the Independent Technical Advisory Panel (ITAP), comprising qualified national experts and practitioners from relevant fields. Of the six ITAP members, two are representatives from the BTF Secretariat.
Step 3: Committee Evaluation
Eligible proposals are reviewed by the designated review committee and technical experts to evaluate:
- Financial viability and repayment capacity
- Environmental and social impact
- Risk management and sustainability
- Implementation readiness
Step 4: Approval & Agreement
Successful applicants are notified and enter into a PRI financing agreement with the BTF, clearly outlining:
- Financing terms and conditions
- Interest rate and repayment schedule
- Gestation period
- Earnest Monthly Installment (EMI) plan
Step 5: Disbursement and Implementation
Funds are released based on agreed milestones, and projects are implemented as per the approved plan.
Step 6: Repayment
After the agreed gestation period, beneficiaries begin repayment to the BTF through structured monthly installments, ensuring sustainability of the PRI mechanism.
The BTF Secretariat is in the process of strengthening the PRI mechanism to enhance its effectiveness as a sustainable financing tool for environmental conservation and green development in Bhutan.