A Tool to Assess Hydropower Sustainabil ity Performance

Doug Smith, Susta inabi l i ty Spec ia l i st , IHA8 December 2011

Mekong Forum on Water, Food and Energy

Proportion of hydropower developed

~50%

33%

7%

75%

~70%

22%

2008 hydro production: ~ 3200 TWh/yRealistic potential production: ~ 9000 TWh/y

(Sources: EIA 2010 and IHA 2010, CHA, 2011)8 December 2011

Mekong Forum on Water, Food and Energy

Hydropower in Sustainable Development

Hydropower offers energy, water, poverty alleviation, greenhouse gas reduction, proven technology, long life span, flexibility, reliability, local economic stimulation...

Negative impacts can arise from environmental changes, including in cases resettlement and loss of livelihoods, heritage, biodiversity, fisheries…

8 December 2011

Mekong Forum on Water, Food and Energy

• A framework for assessing the sustainability of hydropower projects

• Disti ls hydropower sustainability into over 20 clearly-defi ned topics

• Consistent, globally-applicable methodology• Governed by a multi stakeholder Council and terms

and conditi onsRecognised by leading organisati ons (including WWF, The Nature Conservancy, Transparency Internati onal) as a “valuable tool to measure and improve the sustainability of hydropower projects”

8 December 2011

The Protocol

Mekong Forum on Water, Food and Energy8 December 2011

Evolution

Results from a rigorous and informed multi -stakeholder process, including WWF, Transparency Internati onal, Banks and Governments.

2000 World Commission on Dams Final Report

2003 IHA Sustainabil ity Guidel ines

2006 Initi al Sustainabil ity Assessment Protocol

2008-10 Multi -stakeholder Forum refi nes the Hydropower Sustainabil ity Assessment Protocol

2011 Offi cial launch at the IHA World Congress, and establishment of the Counci l

Pol icies taken into account included: World Commission on Dams’ Criteria and Guidel ines; World Bank Safeguard Policies; IFC Performance Standards; and Equator Principles.

Mekong Forum on Water, Food and Energy8 December 2011

Protocol topics

Communications and Consultation Financial Viability Cultural Heritage

Governance Project Benefits Public Health

Demonstrated Need and Strategic Fit Economic Viability Biodiversity and Invasive

Species

Siting and Design Procurement Erosion and Sedimentation

Environmental and Social Issues Management

Project Affected Communities and Livelihoods Water Quality

Integrated Project Management Resettlement Waste, noise and air quality

Hydrological Resource Indigenous Peoples Reservoir Planning and Management

Asset reliability and efficiency Labour and Working Conditions Downstream Flow Regimes

Infrastructure Safety

Mekong Forum on Water, Food and Energy

Background document:

Four methodology documents for four stages of development:

8 December 2011

A Protocol tool for each stage of development

Early stage Preparation Implementation Operation

Mekong Forum on Water, Food and Energy

• Governance Committ ee and IHA are instigating a controlled system to ensure objective, comparable results

• A body of accredited assessors will be formed, and assessors will be required to qualify from a training course, and be regularly appraised

• Training course will concern auditing best practice as well as Protocol details

8 December 2011

Quality control

Mekong Forum on Water, Food and Energy

• Evidence-based objecti ve assessment of a project ’s performance (an offi cial assessment)

• A score of 1 to 5 for each topic area, related to basic good practi ce and proven best practi ce

• An assessment report according to a standard format, automati cally saved in IHA’s assessment database

• Synthesis of informati on on complex faciliti es into a concise and presentable report

• Opti on to make results public• Easily communicable spider diagram of results

8 December 2011

Quality control using accredited assessor delivers:

Mekong Forum on Water, Food and Energy

• Deliver a ‘certified sustainable’ result for any project or provide any ‘stamp of approval’

• Replace national or local regulatory requirements

• Replace an EIA or ESIA that is required to meet regulations or international lender’s demands

8 December 2011

A Protocol Assessment does not:

Mekong Forum on Water, Food and Energy

Identification of practical recommendations to improve sustainability performance

Targeting of recommendations on areas of weaker performance

Strengthened understanding of sustainability amongst developers and operators

Assurance to government and non-government on performance

A neutral platform for dialogue between industry and affected parties on specific issues

Informs international lenders and provides key information and recommendations

Assurance to purchasing utilities

A signal to the public of commitment to sustainability

Allows presentation of results for portfolios of facilities as part of corporate reporting

8 December 2011

Benefits of using the Protocol

Mekong Forum on Water, Food and Energy

• Established to ensure multi -stakeholder input and confi dence in the Protocol content and applicati on

• Made up of seven representati ve

chambers:• Environmental NGOs

• Social/Rights-based NGOs

• Developed country governments

• Developing country governments

• Financial insti tuti ons

• Hydropower operators/developers

• Hydropower consultants/suppliers

8 December 2011

Hydropower Sustainability Assessment Council

Mekong Forum on Water, Food and Energy

Developing Countries P ro fe s s o r G u o q i n g S h i , N ati o n a l Re s e a rc h C e nt re fo r Re s e tt l e m e nt , H o h a i U n i ve rs i t y, C h i n a

Developed Countries M r To r M o r te n S n e v e , S e n i o r Ad v i s e r, D e p a r t m e nt o f Ec o n o m i c D e ve l o p m e nt , E n e rg y, G e n d e r a n d G o v e r n a n c e , N o ra d , N o r way M s An a B a c h u ro va , A d v i s e r, G I Z , G e r m a nyM r F r i e d r i c h H e t ze l , Ad v i s e r, B M Z , G e r m a ny

Finance Sector M s C o u r t n e y L o w ra n c e , V i c e P re s i d e nt , E nv i ro n m e nta l a n d S o c i a l R i s k M a n a g e m e nt , C i ti I n sti t u ti o n a l C l i e nt s G ro u pM s Gwe n Te r ra s , E nv i ro n m e nta l S p e c i a l i s t , S o c i été G é n é ra l eM r R i ka rd L i d e n , S e n i o r H y d ro p o we r S p e c i a l i s t , Wo r l d B a n k ( o b s e r ve r )

Hydropower Sector Dr Refaat Abde l -Malek , Pres ident , Internati onal Hydropower Assoc i ati on Ms Kar in See los , V ice-Pres ident , Power Generati on – Internati ona l Aff a i rs , Statkraft

NGOs - Environmental Aspects Mr Dav i d Harr i son , Sen ior Adv i sor, G loba l Freshwater Team, The Nature Conser vancy Dr Joerg Hart mann, WWF Dams In iti ati ve Leader, WWF Internati onal (Chai r )Mr J ianhua Meng , Susta inab le Hydropower, WWF Germany

NGOs - Social Aspects Dr Dona l O ’Lear y, Sen ior Adv i sor, Transparency Internati onal

8 December 2011

Governance Committee

Mekong Forum on Water, Food and Energy

• Call to parti cipate in the Hydropower Sustainability Assessment Council

• Development of training programmes for the accreditati on of assessors

• Hydro4LIFE• A European Commission-funded, €1.2 million project to

implement the Protocol within the European Union

• Sustainability Partnerships• IHA has partnered with 10 leading hydropower organisations

(with more on the way!) to implement the Protocol and engage stakeholders in training

8 December 2011

Where to from here?

Mekong Forum on Water, Food and Energy

• IHA has developed a Sustainabi l i ty Partner model

• Partners engage with IHA to commit to applying the Protocol

• Sustainabi l i ty Partners receive invaluable experience in the use of the Protocol , and the opti on to disclose sustainabi l i ty performance at the earl iest opportunity

• Each partnership includes: training; two Protocol assessments, one carr ied out by an accredited assessor; ra ised profi le as a Sustainabi l i ty Partner

• Ten partners s igned up as of July 2011

8 December 2011

Sustainability Partners

Mekong Forum on Water, Food and Energy8 December 2011

Mekong Forum on Water, Food and Energy

www.hydrosustainability.org

8 December 2011

Mekong Forum on Water, Food and Energy

• Mission: to advance sustainable hydropower• Non-profit organisation founded in 1995 under

the auspices of UNESCO• Central offi ce: London, UK• National offi ce: China• Regional offi ce: Brazil

8 December 2011

International Hydropower Association