The beginning of a new era for investment in sustainable hydropower

Message from Eddie  Rich

We welcome that today, the Climate Bonds Initiative (CBI), a not-for-profit organisation responsible for green bond certification, has introduced Climate Bond Standard criteria for hydropower.

The guidance clears the way for significant green investment in sustainable hydropower projects.

All types of hydropower projects – of all sizes, in all locations and whether planned or already built – will be eligible for financing with a CBI climate bond provided they meet strict qualifying criteria.

To be eligible for a climate bond, projects will need to commission an assessment using the Hydropower Sustainability ESG Gap Analysis Tool and the G-res Tool for reporting greenhouse gas emissions.

Clarity and assurance

IHA was represented on the Technical Working Group that advised the CBI on the development of the Hydropower Criteria. I would like to especially thank all IHA members that took part in the public consultation organised by CBI.

Before today, the lack of specific hydropower climate bond criteria has meant that most issuers have either excluded hydropower or limited investments to small-scale projects.

The CBI’s new Climate Bonds Standard criteria now clears the way for significant additional investment in sustainable hydropower. It provides the clarity and assurance that investors, governments, the industry, as well as local communities, have demanded for years. To qualify, new and existing projects must now assess their environmental, social and governance (ESG) performance and report a low carbon footprint.

Let there be no mistake, these are tough criteria to meet for any energy industry.

Whilst the hydropower sector can be proud of being held to the most rigorous sustainability investment criteria for any renewable, we will continue to strive for a level playing field to ensure that good green projects don’t get left behind. Nonetheless, this marks the beginning of a new era for investment in sustainable hydropower.

Eddie Rich
CEO, International Hydropower Association

Read more about the climate bonds eligibility criteria

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