As one of the few carbon-negative countries in the world, Bhutan aims to utilize its "Gelephu Mindfulness City" masterplan to promote long-term growth and provide economic opportunities for its youth.
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The inclusion of "mindfulness" in the project's name emphasizes Bhutan's commitment to sustainable urban development, aligning with the nation's focus on living harmoniously with nature.

While increased economic activity may prompt concerns about the feasibility of Bhutan's long-standing sustainable practices, the country is also grappling with socio-economic challenges such as high youth unemployment and the outmigration of young people. The project also aims to attract the Bhutanese diaspora back home.

Since the project’s launch in December 2023, Bhutanese leaders have emphasized that only those individuals and investments aligned with Bhutan’s values will be invited.

Bhutan is renowned for rejecting the concept of gross domestic product as a measure of growth, instead embracing "gross national happiness," a holistic measure of prosperity that includes ecological resilience and psychological well-being among its nine pillars.

The kingdom’s Constitution mandates a minimum of 60% forest cover, a figure that currently stands at around 72%. While in Singapore to promote the new economic hub, Mr. Tobgay spoke with The Straits Times on September 19 before departing for the United Nations General Assembly in New York.

He expressed hope that eventually, one to two million people could live and work in the new economic hub near Gelephu, which currently has a population of around 10,000. Bhutan’s total population is just under 780,000.

“Invitations, I understand, are going out to founding investors,” Mr. Tobgay said, though he declined to disclose the names of wealthy individuals invited to invest in the project, noting some interest from India.

The project’s site includes 35 rivers and streams, along with two protected nature sanctuaries, which will be preserved.

Carbon Credit Trading

Bhutan, which borders Tibet and China to the north, is also seeking to generate revenue through a bilateral carbon credit trading agreement with Singapore.

Negotiations between Singapore and Bhutan on this deal follow the guidelines of the Paris Agreement. Once finalized, the agreement would allow businesses in Singapore to purchase carbon credits from certified green projects in Bhutan to offset some of their carbon taxes.

“I am delighted that Singapore has provided a platform where we can sell and monetize our carbon credits in a fair manner that benefits both buyers and sellers,” Mr. Tobgay said. He added that Bhutanese and Singaporean officials are meeting regularly, and he hopes for a significant agreement by the end of the year.

Many of the carbon credits will come from Bhutan’s newer hydropower projects, which have been certified for carbon credit production.

According to a recent parliamentary reply, Singapore is working with over 20 countries on carbon credit trading. However, only Papua New Guinea and Ghana have signed final agreements with Singapore so far, while Paraguay is close to finalizing one.

Asia Summit of Milken Institute

During his visit to Singapore, Mr. Tobgay attended the Asia Summit of the Milken Institute, an American think tank. He met with President Tharman Shanmugaratnam, Senior Minister Lee Hsien Loong, and Prime Minister Lawrence Wong—his former classmate at Harvard Kennedy School—and Foreign Minister Vivian Balakrishnan.

Boosting Tourism in Bhutan

Prime Minister Tshering Tobgay is eager to attract more visitors from Singapore to boost Bhutan’s tourism industry, which ranks second only to hydropower in terms of revenue generation.

Tourism peaked at around 316,000 visitors in 2019, close to the unofficial cap of 300,000 to ensure sustainability. Post-COVID-19, arrivals in 2023 were still about a third of the 2019 peak.

Though the prime minister hopes to boost tourism, he emphasized that the carrying capacity of 300,000 should "never be breached."

“We will maintain our policy of high value, low volume tourism, but we need to be more strategic to market Bhutan and attract the numbers we can accommodate. This means increasing flights to the right destinations,” he added. The new city will feature 11 neighborhoods, along with a planned dam and airport.

Beyond improving infrastructure, there is an urgent need to create jobs for Bhutan’s youth, with youth unemployment at 19.2% as of June 2023, compared to the broader unemployment rate of 3.7%.

All you need to know about travelling to Bhutan from Singapore.