The development of clean energy is of great importance in alleviating both the energy crisis and environmental pollution resulting from rapid global economic growth. Hydroelectric generation is considered climate benign, as it neither requires fossil carbon to produce energy nor emits large amounts of greenhouse gases (GHG), unlike conventional energy generation techniques such as coal and oil power plants. However, dams and their associated reservoirs are not entirely GHG-neutral and their classification as a clean source of energy requires further investigation. This study evaluated the environmental impact of the Xiajiang hydropower station based on life cycle assessment (LCA) according to the 2006 Intergovernmental Panel on Climate Change (IPCC) guidelines, focusing specifically on GHG emissions after the submersion of the reservoir. Results reveal that although hydropower is not as clean as we thought, it is still an absolute “low emissions” power type in China. The amount of GHG emissions produced by this station is 3.72 million tons with an emissions coefficient of 32.63 g CO2eq/kWh. This figure is lower than that of thermal power, thus implying that hydropower is still a clean energy resource in China. Our recommendations to further minimize the environmental impacts of this station are the optimization of relevant structural designs, the utilization of new and improved construction materials, and the extension of farmland lifting technology.