INSURING A NATURE-POSITIVE WORLD

The document argues that high-impact hydropower is incompatible with nature-positive goals due to its role in the 84% collapse of freshwater species populations since 1970 and its tendency to cause human rights abuses. It positions insurers as key facilitators of the sector, as private companies often cannot build or invest in projects without insurance. The guide recommends that insurers adopt specific ESG policies, decline cover for projects in protected areas, and require independent impact assessments and greenhouse gas emission calculations. It also highlights that climate change increases the risk to hydropower, with 61% of existing and planned projects projected to be in river basins with high risk of floods or droughts by 2050.

• Hydropower dams are the primary cause of the loss of river connectivity, contributing to an 84% collapse in freshwater species populations since 1970.
• Climate change significantly increases the operational and financial risks for hydropower; by 2050, over 60% of existing and planned dams will be in river basins with very high to extreme risk of floods, water scarcity, or both.
• Hydropower is identified as the renewable energy subsector with the highest number of allegations regarding human rights breaches, specifically concerning the rights of Indigenous people and the loss of livelihoods.
• Insurers are critical to the development of hydropower because private companies typically will not construct new projects and private investors will not commit funds without insurance coverage.
• The guide recommends that insurers decline coverage for hydropower projects located in protected and conserved areas, including World Heritage Sites, Ramsar Wetlands, and Indigenous peoples lands.
• To avoid underwriting high-emission projects, insurers should require greenhouse gas emission disclosures and reject projects exceeding a threshold of 50g CO2e/kWh averaged over the project lifetime.
• The document advises insurers to treat all hydropower as a potential 'controversial activity' in investment decision-making, flagging any company that derives a significant portion of its income from the sector.
• Insurers should require independent and credible social and environmental impact assessments (ESIAs) that follow principles of being purposive, rigorous, participative, interdisciplinary, credible, integrated, transparent, and systematic.

APA

Merry, A., & Morales, A. (2022). INSURING A NATURE-POSITIVE WORLD. WWF International. https://www.worldwildlife.org/documents/575/2t1djg6spj_insuring_a_nature_positive_future___an_insurer_s_guide_to_hydropowe_aM44bf9.pdf

Chicago

Merry, Alice, and Adriana Morales. INSURING A NATURE-POSITIVE WORLD. WWF International, 2022. https://www.worldwildlife.org/documents/575/2t1djg6spj_insuring_a_nature_positive_future___an_insurer_s_guide_to_hydropowe_aM44bf9.pdf.

Wikipedia

{{cite report |last1=Merry |first1=Alice |last2=Morales |first2=Adriana |title=INSURING A NATURE-POSITIVE WORLD |publisher=WWF International |date=2022 |url=https://www.worldwildlife.org/documents/575/2t1djg6spj_insuring_a_nature_positive_future___an_insurer_s_guide_to_hydropowe_aM44bf9.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{merry2022insuring, author = {Merry, Alice and Morales, Adriana}, title = {{INSURING A NATURE-POSITIVE WORLD}}, institution = {WWF International}, year = {2022}, url = {https://www.worldwildlife.org/documents/575/2t1djg6spj_insuring_a_nature_positive_future___an_insurer_s_guide_to_hydropowe_aM44bf9.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }