Biodiversity risks and safeguards of China’s hydropower investments in Belt and Road Initiative (BRI) Countries

Abstract

The imperative of a global transition to renewables to achieve net-zero emissions by 2050 calls for an examination of the associated biodiversity risks. Hydropower is the biggest source of renewable energy globally, and its remaining untapped potential is concentrated in low and lower-middle income countries which are also among the world’s most biodiverse. China has emerged as a major overseas financier of hydropower dams under its flagship Belt and Road Initiative (BRI). We assess the biodiversity risk posed by proposed or under-construction hydropower dams being funded by China in BRI countries and compare it with that of dams being funded by Multi-lateral Development Banks (MDBs) – the other key overseas financiers of hydropower. We find that 48 hydropower dams are being financed by China in 18 BRI countries, likely impacting 14 free-flowing rivers and the ranges of 11 critically endangered freshwater fish species, and 130 km2 of critical terrestrial habitat(within a 1-km buffer distance). When compared to dams funded by MDBs, Chinese-funded dams are not located in riskier areas for biodiversity, but the total risk is higher due to their preponderance. We find that Chinese regulators and hydropower companies do not specify any enforceable biodiversity impact mitigation requirements. And while MDBs do specify binding safeguards, impacts on river connectivity do not form a part of the mitigation requirements, except in the case of the European Investment Bank (EIB). China is uniquely positioned to adopt a leadership role in specifying safeguards that will help BRI countries adopt an optimum renewable energy mix that minimizes biodiversity risks.