International community sets new ambition for hydropower to enable sustainable growth
2 November WITA 14:30
The World Hydropower Congress calls for water, wind and sun to power the sustainable growth of the future together, ahead of COP28
The Bali Statement on Powering Sustainable Growth – released today at the World Hydropower Congress 2023 in Bali, Indonesia – states that sustainable hydropower must be the backbone of national strategies to build thriving, low carbon economies bolstered by clean, renewable energy.
As the world’s largest source of renewable energy generation and storage, hydropower has underpinned industrial development in many of the world’s most advanced economies, while also strengthening water management. Most of the untapped hydropower potential that remains today is in developing regions and this is where the Bali Statement urges for more changes and investments to take place.
“The industrial revolution was powered by water. Water, wind and sun together will power the sustainable growth of the future.”
This is the key message of the Bali Statement, which following an open public consultation, has provided four recommendations to policymakers to ensure this necessary collaboration can take place:
- Planning for future energy needs. With more variable renewables like wind and solar power in use, decision-makers must work together across boundaries where necessary, to identify the most optimal overall mix of low carbon renewable energy technologies to enable sustainable development.
- Incentivising sustainable hydropower development through financial and market-based mechanisms. To meet Paris Agreement aims and the UN Sustainable Development Goals, the IEA estimates that investment in hydropower needs to double to $100 billion a year, while the fleet of existing assets must be retained and enhanced. To make this happen, hydropower must be on a level playing field with other renewables. Decision-makers should implement appropriate market frameworks to incentivise and de-risk new hydropower investment and modernisation activities in order to meet climate targets, including remuneration for the non-energy services provided by hydropower projects.
- Accelerating the development of renewables through transparent and efficient permitting and licensing processes. Hydropower planning and approval processes typically take more than five years before new projects and substantive modernisation activities can even begin construction. Meanwhile, the default option is often to fall back on fossil fuels. This licensing process must be accelerated by improving the efficiency of these processes wherever possible without compromising sustainability.
- Incorporating hydropower sustainability practices into government regulation and financial sector obligations. Accelerating development does not mean cutting corners. Application of best sustainability practices, built and governed through multi-stakeholder consensus such as the Hydropower Sustainability Standard, should be either integrated into regulatory frameworks or referred to as a preferred tool to maximise the benefits of projects and mitigate any negative impacts.
The Bali Statement on Powering Sustainable Growth follows on from the global hydropower community’s reaffirmed commitment to the sustainable development of projects through both the adoption of the San José Declaration on Sustainable Hydropower and uptake of the Hydropower Sustainability Standard.
The full statement is available to download here.
Statements of support
“Reaching net zero is not about 'stop the world, I want to get off'. There doesn't need to be a trade-off between growth and cutting emissions. Countries, like Indonesia and mine – Australia – whose industries have been heavily reliant on coal, can have a clear path to continued growth. The Bali Statement on Powering Sustainable Growth sets out what this Congress sees as priorities for how to go about that. What the Statement makes clear is that the energy transition will not be possible without sustainable hydropower as the backbone of future energy systems,” - Malcolm Turnbull, IHA President.
“Canada is supportive of the Bali Statement on Powering Sustainable Growth and its recommendations to incentivise hydropower development, accelerate the development of renewables and embed hydropower sustainability practices in government regulation” – Catherine Stewart, Canada's Ambassador for Climate Change
“We are proud to endorse the Bali Statement and its four recommendations, as we believe they represent the strategic path to promote sustainable growth” – Rosy Ruiz, President of the Executive Council, Empresa de Generación Hidroeléctrica Dominicana (EGEHID)
“The Solomon Islands is in support of the Bali Statement on Powering Sustainable Growth.” – Christopher Vehe, Permanent Secretary for the Ministry of Mines, Energy and Rural Electrification, Solomon Islands
“The Bali Statement on Powering Sustainable Growth calls for hydropower to form the backbone of national strategies. To build thriving, low carbon economies, hosted by clean, renewable energy. Its key recommendations include future energy planning; incentivising and accelerating sustainable hydropower developments, as well as embedding hydropower sustainability practices into government and financial sector regulations. All of this is particularly relevant to encourage continued investment in renewable hydropower,” - Sharbini Suhaili, Chief Executive Officer, Sarawak Energy
“By mainstreaming environmental and social sustainability across AIIB-financed hydropower projects, we will contribute to enhanced asset quality and the maximisation of hydropower benefits, which are highlighted by the Bali Statement.” – Danny Alexander, Vice President, Asian Infrastructure Development Bank
“We have an opportunity for hydropower to set a new standard for sustainable growth, as outlined in the Bali Statement.” – Gia Schneider, CEO, Natel Energy
“The Bali Statement sends a clear message to governments and financial leaders around the world that hydropower must be a part of the solution to grow economies sustainably while decarbonising our industries and ensuring we stay on track with global climate goals.” – Yudo Dwinanda Priaadi, Director General of New Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, Government of Indonesia
About the Bali Statement on Powering Sustainable Growth:
Building on the San José Declaration on Sustainable Hydropower, made in 2021, the Bali Statement focuses on hydropower’s role in enabling thriving, low carbon economies bolstered by renewable energy, setting out three calls to action for governments and financial institutions.
The International Renewable Energy Agency’s (IRENA) 2023 Changing Role of Hydropower report highlights that most of the remaining untapped hydropower potential today can be found in developing regions – and if this is developed alongside other renewables, it can be a driver of large-scale sustainable industrial growth.
Although the global hydropower community has committed to the development of sustainable projects through adopting both the San José Declaration on Sustainable Hydropower and the Hydropower Sustainability Standard, the Bali Statement stresses that this commitment alone is not enough.
It reiterates the need for policy and regulatory frameworks to match the ambition of global climate goals and for financial mechanisms to be implemented that encourage new development.
The International Hydropower Association (IHA) is a non-profit membership organisation committed to sustainable hydropower. Our mission is to advance sustainable hydropower by building and sharing knowledge on its role in renewable energy systems, responsible freshwater management and climate change solutions. We achieve this through monitoring the hydropower sector, building an open, innovative and trusted platform for knowledge, and advancing strategies that strengthen performance.
Learn more: www.hydropower.org.
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About the World Hydropower Congress:
The 2023 World Hydropower Congress, taking place in Bali from 31 October to 2 November, is a vehicle turning climate ambition into action at the highest level.
More than 1,000 decision makers, innovators and experts from industry, governments, finance, civil society and academia will come together; providing a stage for high-level policy statements, recommendations and commitments that will influence the global growth of sustainable hydropower.
Deliverables include reaching a consensus on policy and finance recommendations for advancing the clean energy transition to deliver COP28, breaking down barriers to the development of renewables by advancing policy and investment-driven solutions, demonstrating the importance of renewable technologies to facilitate the shift away from coal, highlighting the immense untapped hydropower potential that exists in many regions of the world, particularly Asia and Africa, as well as business and networking opportunities for industry.
Learn more: https://www.worldhydropowercongress.org/