Draft:Hydropower Sustainability Standard

Hydropower Sustainability Standard

The Hydropower Sustainability Standard (HSS) is a global certification framework established to ensure accountability and sustainability in hydropower development. It provides a structured approach for assessing and certifying hydropower projects based on environmental, social, and governance (ESG) criteria.

The HSS aims to promote responsible growth in the hydropower sector, ensuring that projects deliver net benefits to local communities and the environment.

History

The Hydropower Sustainability Standard was officially launched in September 2021 during the World Hydropower Congress. It was developed through a multi-stakeholder collaboration involving industry representatives, governments, non-governmental organizations (NGOs), and financial institutions.

This initiative built upon previous sustainability assessment tools, such as the Hydropower Sustainability Assessment Protocol (HSAP), to create a unified and globally recognized standard for sustainable hydropower development.

Governance

The Hydropower Sustainability Standard is governed by the Hydropower Sustainability Alliance (HS Alliance), the multi-stakeholder body responsible for setting the HSS and overseeing its implementation. The HS Alliance includes representatives from environmental and social NGOs, governments, financial institutions, and the hydropower industry, ensuring a balanced approach to sustainability governance. Dr. Ashok Khosla, a globally recognized leader in environment and sustainable development, serves as the President.

Members of the Hydropower Sustainability Alliance include international organisations such as the World Wide Fund for Nature (WWF), the World Bank, and the International Union for Conservation of Nature (IUCN), alongside government agencies such as Norad and SECO (an agency of the Swiss Government). Industry representatives also contribute, ensuring that the perspectives of hydropower developers and operators are incorporated. This diverse governance structure is designed to maintain the credibility, transparency, and effectiveness of the HSS in promoting sustainable hydropower development.

The HS Alliance works with all hydropower stakeholders, providing consultancy services and training to support developers elevate their projects to meet the HSS benchmark. The organisation was established on October 31, 2023, during the World Hydropower Congress in Bali, Indonesia, a global event convened by the International Hydropower Association.

Structure and scope

The HSS evaluates hydropower projects across twelve ESG topics:

1. Environmental and social management and assessment
2. Labour and working conditions
3. Water quality and sediments
4. Community impacts and infrastructure safety
5. Resettlement
6. Biodiversity and invasive species
7. Indigenous peoples
8. Cultural heritage
9. Governance and procurement
10. Communications and consultation
11. Hydrological resources
12. Climate change mitigation and resilience

Each topic has defined principles and scope statements that outline the intent and desired outcomes of the assessment.

The certification process is tailored to specific stages of a project's lifecycle, namely Preparation, Implementation, and Operation.

Certification process

The certification process under the HSS involves several key steps:  

1. Assessment: Accredited independent assessors conduct evaluations, gathering objective evidence to provide an unbiased assessment of the project's sustainability performance.
2. Publication and Finalization: A preliminary assessment report is published for public comment. The HS Alliance reviews the report to ensure compliance with certification processes. Assessors respond to public feedback, and a final assessment report is published.
3. Application: Project proponents submit a certification application based on the final assessment report, along with the required application fee.  
4. Certification: If the project meets the HSS's requirements and all processes are correctly followed, the HS Alliance issues the certification.  

Certification statuses are time-bound, with durations of three years for Preparation and Implementation stages, and five years for the Operation stage. Projects must undergo re-certification after these periods to maintain their status.  

Certification levels

Projects can achieve different certification levels based on their assessment scores:  

1. Certified: Projects meet all minimum requirements but score below 30% on advanced requirements.  
2. Certified Silver: Projects meet all minimum requirements and achieve at least 30% of advanced requirements on each relevant topic.  
3. Certified Gold: Projects meet all minimum requirements and attain at least 60% of advanced requirements on each relevant topic.  

Application and continuous improvement

The Hydropower Sustainability Standard provides a structured framework for assessing hydropower projects at different stages of their lifecycle – Preparation, Implementation, and Operation. Each assessment evaluates a project's sustainability performance based on the available evidence at the time of review. Certification at one stage does not imply compliance with the requirements of other stages.

Beyond certification, the HSS serves as a tool for continuous improvement by identifying areas where projects can enhance their sustainability performance. Developers can use assessment findings to implement action plans that address gaps, applying measures to align more closely with best practices. A notable example is the Sebzor Hydropower Project in Tajikistan, which initially underwent assessment and was found to have several areas for improvement. Following the implementation of recommended actions, a subsequent assessment confirmed that the project had addressed these gaps, leading to an upgraded Gold certification. This demonstrates how the HSS can support developers in progressively enhancing their projects’ environmental and social performance over time.

The HSS can also be used by funders and regulators to assess the strategic fit of a project at a system-planning level.

Global impact

Since its inception, the HSS has been applied to hydropower projects across six continents, demonstrating its global relevance and applicability. The HSS serves as a global reference for sustainable hydropower development, facilitating access to green financing and promoting best practices worldwide.

The HSS has been integrated into national policies in several countries. Governments such as those of Tajikistan, Colombia, and Nepal have taken steps to align regulatory frameworks with its principles.

Several financial institutions, including HSBC, Standard Chartered, and Swiss Re, have referenced the Hydropower Sustainability Standard in their energy policies or client requirements.