Accelerating change – Turning commitment into action

In November 2023, on the eve of COP28 in the UAE, the United Nations Framework Convention on Climate Change (UNFCC) will publish The Paris Agreement’s Global Stocktake. Two years in the making, this massive collective effort will tell us where we sit in our battle against climate change, where we need to be heading, and, critically, how we get there.

Without knowing the details of the study, we can be confident that we’re behind where we need to be and that change needs to happen fast.

In our industry this sense of urgency is reflected in this year’s World Water Day theme - “accelerating change” - to help solve the water and sanitation crisis, and especially the climate crisis.

So, where do I believe we need to be accelerating change so we can reach climate goals and solve the water crisis? ?

Commitments vs action

Let me start with a positive - I have seen rapid change in the levels of intent and commitments since the Paris Agreement was signed. More than 130 countries ?have now set or are considering a target of reducing emissions to net zero by 2050. Thousands of major corporations have done the same. You rarely open a newspaper or watch a news report which doesn’t include a mention of climate change. In short, we’re talking the talk on climate action.

The bad news is that commitment isn’t translating into practical action. The development of hydropower is a perfect microcosm of the issue. As a clean, green, and affordable source of energy, sustainable hydropower can have huge impact in achieving net zero. Research shows that a doubling of capacity will be needed to keep 1.5°C within reach. Far too often, it is overlooked that it is precisely the development of more hydropower that also helps solve the water crisis (the theme of this year's World Water Day) by developing water infrastructure such as multipurpose reservoirs and managing water effectively. While other energy sources consume large amounts of water, hydropower can use the same drop over and over again.

Yet, despite all of these clear advantage for net zero and water management, new hydropower capacity is not coming online fast enough. In 2021, only 26 GW of new capacity was put into operation when the International Energy Agency says 45 GW was needed. To keep temperature rises to 2°C would require 30 GW annually. In other words, we’re still not walking the talk. It makes me think of COP 26 President Alok Sharma. Shortly before the climate summit in Glasgow, he asked all nations to get on the dance floor. Unfortunately, these numbers indicate that there is still too little dancing on this dance floor.

So, you might ask, what is holding us back from making these changes happen? What practical actions should be taken to accelerate change in the Hydropower Industry?

Permitting and financial viability

Whilst far from being the sole issues, I believe the permitting process and financial viability of projects are two key issues where we need some action.

Firstly, permitting. The American Clean Power Association, summed up the issue perfectly at a United States House Committee on Natural Resources last month -

“Successful deployment of clean energy resources requires a predictable, timely, and cost-effective permitting framework. The current process is anything but.”

Although speaking about the US, the words apply globally. Lengthy permitting processes alter long-term visibility on projects and therefore decreases investors’ confidence. Policymakers and regulators need to take urgent action to free up the process and get new projects moving.

The second issue, financial viability, requires policies and markets that recognize the value of the flexibility and ancillary services provided by hydropower. These, coupled with tax benefits and financial support structures for the deployment and testing of new hydropower technologies, make hydropower projects more enticing for investors. ?

India – Accelerating Change

India is a country that I believe is getting this right. A massive Hydropower expansion in the country is being used to help achieve an ambitious goal of climate neutrality by 2070. This kind of clear commitment must also be reflected in legislations around the world.

Policymakers in the Indian Ministry of Power are taking exactly the sort of practical action I have described above:

• Pumped storage projects will be eligible for concessional climate finance, including through green government bonds.
• Guidelines provide a framework to promote the development of new pumped storage power plants
• Clear rules for bidding processes on pumped storage projects have been set.
• Various tax benefits have made projects more financially viable, bringing in greater private capital.

Everywhere I go in the world, I see the enthusiasm and passion of young people and activists when it comes to taking action on climate. On the occasion of World Water Day 2023, I call on policymakers, interested stakeholders around the world, and each and every one of us: Let's be inspired by this passion of climate activists. Let's accelerate change by translating their commitment into practical action. Or, to put it again in the words of Alok Sharma. Let's all get on the dance floor. Now.