Hydropower Criteria

The Hydropower Criteria, published by the Climate Bonds Initiative in March 2021, establishes the technical and environmental requirements for hydropower assets and projects to be eligible for certification under the Climate Bonds Standard. The criteria focus on two main components: climate mitigation (GHG emissions and power density) and climate adaptation and resilience (ESG gap analysis).

• Hydropower facilities must meet specific mitigation thresholds based on their operational start date to be eligible for certification. Facilities operational before 2020 must have a power density greater than 5W/m2 or GHG emissions intensity below 100g CO2e/kWh. For facilities commencing operation in 2020 or later, the requirements are stricter: a power density greater than 10W/m2 or GHG emissions intensity below 50g CO2e/kWh.
• Pumped storage facilities must meet additional criteria beyond general mitigation thresholds. They must satisfy at least one of three conditions: be purposefully built with intermittent renewables (e.g., the Hatta Dam project in the United Arab Emirates), contribute to a grid with at least 20% intermittent renewables (or have credible plans to reach this in 10 years), or demonstrate that they are not charged with off-peak grid intensity higher than the electricity they displace during discharge.
• To pass the Adaptation and Resilience Component, facilities must undergo an assessment using the ESG Gap Analysis Tool conducted by an Accredited Assessor. Eligibility is contingent on having no more than 10 total significant gaps, no more than 2 significant gaps per section, and no 'deal-breaker' gaps related to the Mitigation Criteria or Free, Prior and Informed Consent (FPIC).
• If significant gaps are identified during the ESG assessment, an Environmental and Social Action Plan (ESAP) is required. The Approved Verifier must confirm that more than 50% of these gaps will be closed within 12 months and all remaining gaps within 24 months. Failure to close gaps within these timeframes results in the withdrawal of certification.
• The scope of the criteria includes run-of-river, impoundment, and pumped storage power stations, as well as in-stream technology and dedicated supporting infrastructure like transmission lines. Marine-based hydropower-like assets are explicitly excluded from these criteria and must instead comply with the Marine Renewable Energy Criteria.
• Issuers are required to publicly disclose the Accredited Assessor's report and the associated ESAP. They must also separately disclose the power density or GHG emissions intensity used to meet the mitigation component if not already explicitly noted in the reports.

APA

Climate Bonds Initiative (2021). Hydropower Criteria. https://www.climatebonds.net/files/drupal-files/files/Hydropower-Criteria-doc-March-2021-release3.pdf

Chicago

Climate Bonds Initiative. Hydropower Criteria. 2021. https://www.climatebonds.net/files/drupal-files/files/Hydropower-Criteria-doc-March-2021-release3.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Hydropower Criteria |date=25 March 2021 |url=https://www.climatebonds.net/files/drupal-files/files/Hydropower-Criteria-doc-March-2021-release3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021hydropower, author = {{Climate Bonds Initiative}}, title = {{Hydropower Criteria}}, institution = {Climate Bonds Initiative}, year = {2021}, month = mar, url = {https://www.climatebonds.net/files/drupal-files/files/Hydropower-Criteria-doc-March-2021-release3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }