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A Tool to Assess
Hydropower
Sustainability
Performance



Doug Smith,
S u s ta i n a b i l i t y
S p e c i a l i st , I H A
8 December 2011
Proportion of hydropower developed


                                           75%
             ~50%

                                                                         22%

                                               7%
                                                                                  ~70%
                     33%


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


   8 December 2011     Mekong Forum on Water, Food and Energy
                                                         (Sources: EIA 2010 and IHA 2010, CHA, 2011)
Hydropower in Sustainable Development



                                                                        Negative impacts can arise from
                                                                        environmental changes, including in
Hydropower offers energy, water,                                        cases resettlement and loss of
poverty alleviation, greenhouse gas                                     livelihoods, heritage, biodiversity,
reduction, proven technology, long                                      fisheries…
life span, flexibility, reliability, local
economic stimulation...




          8 December 2011      Mekong Forum on Water, Food and Energy
The Protocol

• A framework for assessing the sustainability of
  hydropower projects
• Distils hydropower sustainability into over 20
  clearly-defined topics
• Consistent, globally-applicable methodology
• Governed by a multistakeholder Council and terms
  and conditions
Recognised by leading organisations (including WWF, The
Nature Conservancy, Transparency International) as a
“valuable tool to measure and improve the sustainability
of hydropower projects”

    8 December 2011   Mekong Forum on Water, Food and Energy
Evolution

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

2000            World Commission on Dams Final Report
2003            IHA Sustainability Guidelines
2006            Initial Sustainability Assessment Protocol
2008-10         Multi-stakeholder Forum refines the Hydropower
                Sustainability Assessment Protocol
2011            Official launch at the IHA World Congress, and
                establishment of the Council

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


       8 December 2011   Mekong Forum on Water, Food and Energy
Protocol topics
Communications and
                                   Financial Viability                 Cultural Heritage
Consultation
Governance                         Project Benefits                    Public Health
Demonstrated Need and                                                  Biodiversity and Invasive
                                   Economic Viability
Strategic Fit                                                          Species
Siting and Design                  Procurement                         Erosion and Sedimentation
Environmental and Social           Project Affected Communities
                                                                Water Quality
Issues Management                  and Livelihoods
Integrated Project
                                   Resettlement                        Waste, noise and air quality
Management
                                                                       Reservoir Planning and
Hydrological Resource              Indigenous Peoples
                                                                       Management
                                   Labour and Working
Asset reliability and efficiency                                       Downstream Flow Regimes
                                   Conditions
           8 December 2011    Mekong Forum on Water, Food and Energy
Infrastructure Safety
A Protocol tool for each stage of
development
Background document:



Four methodology documents for four stages of development:

   Early stage         Preparation                  Implementation   Operation




     8 December 2011   Mekong Forum on Water, Food and Energy
Quality control

• Governance Committee 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   Mekong Forum on Water, Food and Energy
Quality control using accredited assessor
delivers:
• Evidence-based objective assessment of a project’s
  performance (an official assessment)
• A score of 1 to 5 for each topic area, related to
  basic good practice and proven best practice
• An assessment report according to a standard
  format, automatically saved in IHA’s assessment
  database
• Synthesis of information on complex facilities into a
  concise and presentable report
• Option to make results public
• Easily communicable spider diagram of results


    8 December 2011   Mekong Forum on Water, Food and Energy
A Protocol Assessment does not:

• 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   Mekong Forum on Water, Food and Energy
Benefits of using the Protocol

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    Mekong Forum on Water, Food and Energy
Hydropower Sustainability Assessment
Council
• Established to ensure multi-stakeholder input and confidence in
  the Protocol content and application
• Made up of seven representative
 chambers:
  • Environmental NGOs
  • Social/Rights-based NGOs
  • Developed country governments
  • Developing country governments
  • Financial institutions
  • Hydropower operators/developers
  • Hydropower consultants/suppliers




     8 December 2011    Mekong Forum on Water, Food and Energy
Governance Committee

Developing Countries                                                      Hydropower Sector
P ro fe s s o r G u o q i n g S h i , N a t i o n a l Re s e a rc h       D r Re fa a t A b d e l - M a l e k , P r e s i d e n t ,
C e n t r e fo r Re s e tt l e m e n t , H o h a i U n i ve rs i t y,     I n te r n a t i o n a l H yd ro p o we r A s s o c i a t i o n
China                                                                     M s Ka r i n S e e l o s , V i c e - P r e s i d e n t , Po we r
                                                                          G e n e ra t i o n – I n te r n a t i o n a l A f fa i r s , S tat k ra f t
Developed Countries
M r To r M o r te n S n e v e , S e n i o r A d v i s e r,                NGOs - Environmental Aspects
Department of Economic Development,                                       M r D av i d H a r r i s o n , S e n i o r A d v i s o r, G l o b a l
E n e r g y, G e n d e r a n d G o v e r n a n c e , N o ra d ,           F r e s h wa te r Te a m , T h e N at u re C o n s e r v a n c y
N o r way                                                                 Dr Joerg Hartmann, WWF Dams Initiative
M s A n a B a c h u ro va , A d v i s e r, G I Z , G e r m a ny           L e a d e r, W W F I n te r n a t i o n a l ( C h a i r )
M r F r i e d r i c h H e t ze l , A d v i s e r, B M Z , G e r m a n y   M r J i a n h u a M e n g , S u sta i n a b l e H y d ro p o we r,
                                                                          WWF Germany
Finance Sector
M s C o u r t n e y L o w ra n c e , V i c e P r e s i d e n t ,          NGOs - Social Aspects
E nv i ro n m e n t a l a n d S o c i a l R i s k M a n a g e m e n t ,   D r D o n a l O ’ L e a r y, S e n i o r A d v i s o r,
C i t i I n s t i t u t i o n a l C l i e n t s G ro u p                  Tra n s p a re n c y I n te r n a t i o n a l
M s Gwe n Te r ra s , E nv i ro n m e n t a l S p e c i a l i s t ,
S o c i ét é G é n é ra l e
M r R i ka r d L i d e n , S e n i o r H y d ro p o w e r
S p e c i a l i s t , Wo r l d B a n k ( o b s e r v e r )



           8 December 2011                Mekong Forum on Water, Food and Energy
Where to from here?

• Call to participate in the Hydropower Sustainability
  Assessment Council
• Development of training programmes for the
  accreditation 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   Mekong Forum on Water, Food and Energy
Sustainability Partners

• IHA has developed a Sustainability
  Partner model
• Partners engage with IHA to
  commit to applying the Protocol
• Sustainability Partners receive
  invaluable experience in the use of
  the Protocol, and the option to
  disclose sustainability perfor mance
  at the earliest opportunity
• Each partnership includes:
  training; two Protocol
  assessments, one carri ed out by an
  accredited assessor; raised profile
  as a Sustainability Partner
• Ten partners signed up as of July
  2011


     8 December 2011   Mekong Forum on Water, Food and Energy
8 December 2011   Mekong Forum on Water, Food and Energy
www.hydrosustainability.org



 8 December 2011   Mekong Forum on Water, Food and Energy
International Hydropower Association

• Mission: to advance sustainable hydropower
• Non-profit organisation founded in 1995 under
  the auspices of UNESCO
• Central office: London, UK
• National office: China
• Regional office: Brazil




   8 December 2011   Mekong Forum on Water, Food and Energy

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Hydropower Sustainability Assessment Protocol

  • 1. A Tool to Assess Hydropower Sustainability Performance Doug Smith, S u s ta i n a b i l i t y S p e c i a l i st , I H A 8 December 2011
  • 2. Proportion of hydropower developed 75% ~50% 22% 7% ~70% 33% 2008 hydro production: ~ 3200 TWh/y Realistic potential production: ~ 9000 TWh/y 8 December 2011 Mekong Forum on Water, Food and Energy (Sources: EIA 2010 and IHA 2010, CHA, 2011)
  • 3. Hydropower in Sustainable Development Negative impacts can arise from environmental changes, including in Hydropower offers energy, water, cases resettlement and loss of poverty alleviation, greenhouse gas livelihoods, heritage, biodiversity, reduction, proven technology, long fisheries… life span, flexibility, reliability, local economic stimulation... 8 December 2011 Mekong Forum on Water, Food and Energy
  • 4. The Protocol • A framework for assessing the sustainability of hydropower projects • Distils hydropower sustainability into over 20 clearly-defined topics • Consistent, globally-applicable methodology • Governed by a multistakeholder Council and terms and conditions Recognised by leading organisations (including WWF, The Nature Conservancy, Transparency International) as a “valuable tool to measure and improve the sustainability of hydropower projects” 8 December 2011 Mekong Forum on Water, Food and Energy
  • 5. Evolution Results from a rigorous and informed multi-stakeholder process, including WWF, Transparency International, Banks and Governments. 2000 World Commission on Dams Final Report 2003 IHA Sustainability Guidelines 2006 Initial Sustainability Assessment Protocol 2008-10 Multi-stakeholder Forum refines the Hydropower Sustainability Assessment Protocol 2011 Official launch at the IHA World Congress, and establishment of the Council Policies taken into account included: World Commission on Dams’ Criteria and Guidelines; World Bank Safeguard Policies; IFC Performance Standards; and Equator Principles . 8 December 2011 Mekong Forum on Water, Food and Energy
  • 6. Protocol topics Communications and Financial Viability Cultural Heritage Consultation Governance Project Benefits Public Health Demonstrated Need and Biodiversity and Invasive Economic Viability Strategic Fit Species Siting and Design Procurement Erosion and Sedimentation Environmental and Social Project Affected Communities Water Quality Issues Management and Livelihoods Integrated Project Resettlement Waste, noise and air quality Management Reservoir Planning and Hydrological Resource Indigenous Peoples Management Labour and Working Asset reliability and efficiency Downstream Flow Regimes Conditions 8 December 2011 Mekong Forum on Water, Food and Energy Infrastructure Safety
  • 7. A Protocol tool for each stage of development Background document: Four methodology documents for four stages of development: Early stage Preparation Implementation Operation 8 December 2011 Mekong Forum on Water, Food and Energy
  • 8. Quality control • Governance Committee 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 Mekong Forum on Water, Food and Energy
  • 9. Quality control using accredited assessor delivers: • Evidence-based objective assessment of a project’s performance (an official assessment) • A score of 1 to 5 for each topic area, related to basic good practice and proven best practice • An assessment report according to a standard format, automatically saved in IHA’s assessment database • Synthesis of information on complex facilities into a concise and presentable report • Option to make results public • Easily communicable spider diagram of results 8 December 2011 Mekong Forum on Water, Food and Energy
  • 10. A Protocol Assessment does not: • 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 Mekong Forum on Water, Food and Energy
  • 11. Benefits of using the Protocol 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 Mekong Forum on Water, Food and Energy
  • 12. Hydropower Sustainability Assessment Council • Established to ensure multi-stakeholder input and confidence in the Protocol content and application • Made up of seven representative chambers: • Environmental NGOs • Social/Rights-based NGOs • Developed country governments • Developing country governments • Financial institutions • Hydropower operators/developers • Hydropower consultants/suppliers 8 December 2011 Mekong Forum on Water, Food and Energy
  • 13. Governance Committee Developing Countries Hydropower Sector P ro fe s s o r G u o q i n g S h i , N a t i o n a l Re s e a rc h D r Re fa a t A b d e l - M a l e k , P r e s i d e n t , C e n t r e fo r Re s e tt l e m e n t , H o h a i U n i ve rs i t y, I n te r n a t i o n a l H yd ro p o we r A s s o c i a t i o n China M s Ka r i n S e e l o s , V i c e - P r e s i d e n t , Po we r G e n e ra t i o n – I n te r n a t i o n a l A f fa i r s , S tat k ra f t Developed Countries M r To r M o r te n S n e v e , S e n i o r A d v i s e r, NGOs - Environmental Aspects Department of Economic Development, M r D av i d H a r r i s o n , S e n i o r A d v i s o r, G l o b a l E n e r g y, G e n d e r a n d G o v e r n a n c e , N o ra d , F r e s h wa te r Te a m , T h e N at u re C o n s e r v a n c y N o r way Dr Joerg Hartmann, WWF Dams Initiative M s A n a B a c h u ro va , A d v i s e r, G I Z , G e r m a ny L e a d e r, W W F I n te r n a t i o n a l ( C h a i r ) M r F r i e d r i c h H e t ze l , A d v i s e r, B M Z , G e r m a n y M r J i a n h u a M e n g , S u sta i n a b l e H y d ro p o we r, WWF Germany Finance Sector M s C o u r t n e y L o w ra n c e , V i c e P r e s i d e n t , NGOs - Social Aspects E nv i ro n m e n t a l a n d S o c i a l R i s k M a n a g e m e n t , D r D o n a l O ’ L e a r y, S e n i o r A d v i s o r, C i t i I n s t i t u t i o n a l C l i e n t s G ro u p Tra n s p a re n c y I n te r n a t i o n a l M s Gwe n Te r ra s , E nv i ro n m e n t a l S p e c i a l i s t , S o c i ét é G é n é ra l e M r R i ka r d L i d e n , S e n i o r H y d ro p o w e r S p e c i a l i s t , Wo r l d B a n k ( o b s e r v e r ) 8 December 2011 Mekong Forum on Water, Food and Energy
  • 14. Where to from here? • Call to participate in the Hydropower Sustainability Assessment Council • Development of training programmes for the accreditation 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 Mekong Forum on Water, Food and Energy
  • 15. Sustainability Partners • IHA has developed a Sustainability Partner model • Partners engage with IHA to commit to applying the Protocol • Sustainability Partners receive invaluable experience in the use of the Protocol, and the option to disclose sustainability perfor mance at the earliest opportunity • Each partnership includes: training; two Protocol assessments, one carri ed out by an accredited assessor; raised profile as a Sustainability Partner • Ten partners signed up as of July 2011 8 December 2011 Mekong Forum on Water, Food and Energy
  • 16. 8 December 2011 Mekong Forum on Water, Food and Energy
  • 17. www.hydrosustainability.org 8 December 2011 Mekong Forum on Water, Food and Energy
  • 18. International Hydropower Association • Mission: to advance sustainable hydropower • Non-profit organisation founded in 1995 under the auspices of UNESCO • Central office: London, UK • National office: China • Regional office: Brazil 8 December 2011 Mekong Forum on Water, Food and Energy