South Asia is receiving additional funding of up to $3.8 million (£2.50m) to tackle climate change.
The World Bank made the announcement to help the region prevent natural disasters.
It will support a weather and disaster improvement project to strengthen weather forecasting and natural disaster early warnings in Bhutan and the South Asia region.
A specific pilot programme for climate resilience will help the region develop a climate resilience strategy.
Annette Dixon, World Bank Vice President for the South Asia Region said: “Bhutan is setting the stage for an ambitious agenda to tackle climate change and protect the people of Bhutan and South Asia from the risks of a warming climate and extreme weather.
“Bhutan has long been a champion and a global leader for climate change adaptation and disaster resilience. And with this new funding, we’re initiating a transformative low carbon strategy, which will embrace all sectors of the economy and could become a model for the rest of South Asia.”