Hydropower

Aligning Hydropower with climate goals

Hydropower is the world’s largest source of renewable electricity, generating approximately 15% of global electricity and half of all renewable energy. As a cornerstone of the low-carbon energy system, hydropower plays a crucial role in addressing climate change by providing green electricity. 
 

Greenhouse gas emissions 

Hydropower projects have a wide range of greenhouse gas (GHG) emissions, from as low as 1 gCO2e/kWh to as high as 2,200 gCO2e/kWh, depending on the type of project. Reservoir-based projects often release CO2 and methane (CH4) due to physical and biological processes.  
 
The Hydropower Criteria tackle these emissions through: 

• Power density thresholds (W/m²).
• Emissions intensity thresholds (gCO2e/kWh). 
   

Broader environmental and social impacts 

Hydropower development has significant environmental and social implications, such as impacts on: 

• Biodiversity.
• Land use and water resources.
• Local communities. 

To address these, the Hydropower Criteria integrate the ESG Gap Analysis Tool, developed by the International Hydropower Association (IHA), ensuring projects are sustainable and socially responsible. 
 

Energy storage and grid stability 

Hydropower plays a pivotal role in energy storage and grid stability, especially through pumped storage facilities. These systems store energy for use when other renewable sources, like solar and wind, are unavailable. The Criteria ensure these facilities avoid greenwashing by restricting the storage of non-renewable electricity. 
 

Alignment with climate goals 

The Hydropower Criteria align with the Paris Agreement, supporting sustainable development while maintaining energy access and economic growth.  
 
Key features include: 

• Ensuring projects comply with the 1.5°C global climate target.
• Supporting investments that reduce reliance on fossil fuels.
• Enhancing climate resilience while prioritising environmental and social sustainability. 
   

Advancing sustainable hydropower 

By adhering to these Criteria, hydropower projects can strengthen their credibility, attract responsible investors, and contribute significantly to the transition to a low-carbon energy future. As a vital tool in reducing global carbon emissions, hydropower continues to be an essential component in combating climate change.