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This paper investigates the potential of applying industrial ecology in the development of eco-industrial estates in Bhutan. It presents the factors contributing to the success or failure of eco-industrial estates along with the benefits arising from the set-up of such facilities to industry, the environment and local communities. The development strategies, policies, practices, laws, rules and regulations, market conditions and private-sector initiatives undertaken in Kalundborg Eco-industrial Park, Burnside Eco-industrial Park and Map Ta Phut Industrial Estate in Denmark, Canada and Thailand, respectively, are used to analyse eco-industrial development in Bhutan. The existence of supportive legislation, a close working relationship between the government and private sector, enabling an environment for information sharing, and a diverse mix of industries in Bhutan are identified as the key opportunities and supportive conditions for as well as the challenges to eco-industrial development in Bhutan and realisation of the government’s vision for a ‘cleaner’ industrial sector.

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