Harmonizing Hydropower with Nature-Based Solutions

Date: 26 August 11:00 – 12:30 (CEST)

The recording is available via YouTube:

Session Program

Session Overview

Ms. Yumiko Asayama, Chief Manager of the APWF Secretariat / Japan Water Forum, coordinated the session on Asia’s water–energy–food–ecosystems (WEFE) nexus. Participants delved into the interplay between hydropower and nature-based solutions (NbS) and discussed how to balance hydropower development with ecosystem conservation under climate change, sharing practical approaches for land-use planning, managing WEFE trade-offs, conserving biodiversity, and strengthening community resilience, while underscoring the value of integrated basin- and regional-level strategies.

Opening Remarks

Dr. Rachell McDonald, Deputy Director-General, IWMI, opened with a key question: How can Asia manage hydropower development while preserving ecosystems?

Hydropower accounts for approximately 15% of Asia’s total energy and remains crucial for renewable energy transitions. However, poorly planned projects can damage biodiversity and disrupt livelihoods. Dr. McDonald emphasized that the challenge is not choosing between energy and nature, but integrating both through NbS such as floodplain restoration, agroforestry, and environmental flow management. He called for breaking sectoral silos and advancing a Nexus-based approach through regional and South–South cooperation.

Presentation

Dr. Mohsin Hafeez (IWMI)
Dr. Hafeez presented on “Moving from Nexus to Action,” emphasizing the transition from concept to practical implementation. From 2022 to 2024, CGIAR operationalized the Nexus approach across five major river basins:

• Indus (Pakistan)
• Ganges (India and Nepal)
• Aral Sea (Central Asia)
• Blue Nile (Ethiopia and Sudan)
• Southern Africa (South Africa and Zimbabwe)

This work continues as the WEFE Nexus Policy Innovation Program, which develops actionable policies and tools that integrate these systems.

Example 1: Optimizing Water and Hydropower in the Indus Basin

CGIAR developed a Water Allocation Optimization Model that integrates water, energy, and agricultural systems to optimize releases for irrigation, hydropower generation, and ecosystem needs. The tool, co-developed with the University of Manchester, supports decision-making by the Government of Pakistan and is being applied in Central Asia and Southern Africa.

Example 2: Groundwater Recharge and NbS in the Ganges Basin

In the Ramganga sub-basin, the Underground Transfer of Floods for Irrigation (UTFI) approach captures floodwater and stores it in aquifers using community-managed infrastructure. Since its inception in 2014, over 300 recharge structures have been implemented, resulting in an 8% increase in aquifer recharge efficiency.

Dr. Hafeez then highlighted joint work with ADPC on WEFE Nexus operational guidelines for South Asia, addressing challenges of policy translation, institutional coordination, fragmented data, and stakeholder engagement. He stressed the importance of capacity development, particularly for women leaders, noting successful platforms established in Nepal. He concluded that implementing the Nexus requires managing complexity, understanding trade-offs, and strengthening regional cooperation. He invited participants to contribute to the Global Commission on Sustainable Water for Food Futures, which explores future water–food dynamics.

Dr. Senaka Basnayake (Asian Disaster Preparedness Center, ADPC)
Dr. Basnayake shared experiences from Thailand on the use of NbS for urban resilience and sediment management, which are relevant to hydropower sustainability.

The project—funded by the German government (IKI) and led by IUCN with partners including ADPC, the Thailand Environment Institute, and Chulalongkorn University—focuses on two cities: Chiang Rai (northern Thailand) and Surat Thani (southern Thailand).

The initiative comprises four work packages:

• Risk assessment – data collection and hazard modeling led by ADPC.
• Nature-based Solutions – NbS design for multi-hazard resilience.
• Policy and advocacy – enabling governance for NbS uptake.
• Capacity building and replication – for scaling and sustainability.

Upstream interventions, such as sustainable agriculture and reforestation, are enhancing watershed health and reducing sediment loads—ultimately benefiting hydropower operations. The project (2023–2028) aims to generate replicable models for integrating NbS into hydropower planning and urban resilience strategies.

Mr. Chengcheng Qian (Global Infrastructure Basel Foundation, GIB)
Mr. Qiang introduced GIB’s framework for developing bankable NbS projects across the full infrastructure life cycle—from planning to operation. The framework, co-developed with the European Investment Bank, WWF, and The Nature Conservancy, guides project design through:

• setting ambitions,
• conducting scientific and policy analyses,
• prioritizing NbS through cost–benefit evaluation, and
• structuring financing and insurance mechanisms.

GIB’s collaboration with insurers creates de-risking products to attract private capital. Case studies from Greece and Cyprus demonstrate the framework’s potential to inform NbS-based flood risk management and stakeholder engagement. Mr. Zhang underscored that the methodology is geographically adaptable and suitable for replication in the Asia-Pacific to strengthen investment in NbS for climate resilience and hydropower sustainability.

Mr. Oliver Chassot (IUCN Asia)
Mr. Chassot emphasized that hydropower plays a dual role—as a clean energy source and as a driver of ecological change. He introduced Other Effective Area-Based Conservation Measures (OECMs) as a promising tool to reconcile hydropower operations with biodiversity goals.

The Nam San Biodiversity Offset in Lao PDR exemplifies this approach, conserving 79,000 hectares of intact forest adjacent to a hydropower project. Managed under a 30-year plan, the site provides habitat for endangered species, supports local livelihoods, and is co-governed by public, private, and civil society partners.

Mr. Caso identified three key lessons:

• Hydropower landscapes can deliver long-term biodiversity outcomes.
• Inclusive governance and sustained financing align with the Kunming-Montreal Global Biodiversity Framework (Target 3).
• OECMs can generate shared value—supporting ecosystems, communities, and energy resilience.

He called for safeguards to ensure integrity, avoid “blue-washing,” and prioritize measurable biodiversity outcomes. Responsible OECMs, he concluded, can transform hydropower into a nature-positive development model.

Dr. Ai Sugiura (UNESCO Beijing Office)
Dr. Sugiura highlighted UNESCO’s work connecting water, ecosystems, and science through programs such as:

• the Intergovernmental Hydrological Programme (IHP),
• the Man and the Biosphere (MAB) Programme, and
• the International Geoscience and Geoparks Programme.

She showcased examples from eco-hydrology demonstration sites, such as the upper Citarum River Basin in Indonesia, which applies catchment restoration and pollution control to improve reservoir management. UNESCO-designated sites—biosphere reserves and geoparks—serve as living laboratories for testing NbS that sustain agriculture, maintain water quality, and enhance hydropower resilience.

Dr. Sugiura also underscored the role of Open Science, guided by UNESCO’s 2021 Recommendation, promoting data that are Findable, Accessible, Interoperable, and Reusable (FAIR), while respecting indigenous knowledge. Through open hydrology and inclusive innovation, UNESCO fosters regional cooperation for sustainable water–energy–ecosystem management. She concluded that hydropower, when guided by ecohydrology, NbS, and open science, can evolve into a driver of ecological restoration, community resilience, and sustainable development.

Panel Discussion Summary

Moderator: Prof. Taikan Oki (University of Tokyo, Japan Water Forum Vice President)

Prof. Oki opened the discussion by reflecting on the long-standing environmental and social concerns associated with hydropower and reservoir construction. The session presentations, however, highlighted promising approaches to balance—or even reconcile—the trade-offs between ecosystem conservation and energy production.

He first invited Dr. Hafeez from IWMI for a discussion on whether similar trade-offs exist in managed aquifer recharge (MAR) systems, particularly within the broader water–energy–food–environment (WEFE) nexus.

Dr. Hafeez confirmed that such trade-offs are indeed present but can be managed effectively. In South Asia, seasonal monsoon cycles create alternating periods of water surplus and scarcity. MAR systems, whether small or large-scale, can capture and store excess surface water during wet seasons for use during dry periods. This approach stabilizes water availability, enhances irrigation reliability, and strengthens farmers’ resilience—particularly evident during events such as the 2022 South Asia heatwave, when water shortages severely impacted food production.

He added that hydropower operations also involve similar trade-offs, requiring careful balancing of water releases between power generation and the needs of downstream agricultural and ecological interests. With numerous new hydropower projects underway in basins such as the Indus, integrated planning through a nexus lens is crucial.

Prof. Oki noted that while aquifers can serve as “natural reservoirs,” recharge control is less precise than in surface systems unless engineered interventions, such as subsurface barriers, are applied.

Dr. Hafeez elaborated that confined aquifers allow for controlled recharge through injections, whereas unconfined aquifers pose challenges due to potential dispersion or mixing of salinity. Understanding local hydrogeology is therefore crucial before implementing MAR. He also cited sand dams as viable recharge options, with about seven to eight MAR models currently in use across Asia and Africa, tailored to local conditions and community needs.

Prof. Oki then invited Dr. Senaka Basnayake (ADPC) to share perspectives on strengthening regional governance and data sharing through platforms such as the Mekong River Commission (MRC).

Dr. Senaka highlighted the MRC as a strong model of regional cooperation in Southeast Asia. He emphasized that nature-based solutions (NbS) can serve as practical entry points for fostering both cross-sectoral and transboundary collaboration. Upstream ecosystem restoration, for example, can yield downstream benefits such as improved flood management. While dams can provide structural solutions, NBS often offer politically and socially acceptable alternatives.

He also underscored the importance of data and knowledge sharing, noting ADPC’s collaboration with the MRC through the Southeast Asia Drought Watch, which provides biweekly drought forecasts integrated into the MRC’s regional drought monitoring system. Joint training and capacity-building initiatives further strengthen regional dialogue and enhance cross-sectoral coordination.

Prof. Oki observed that while data sharing and forecasting are crucial, regional bodies such as the MRC currently lack the authority to mandate the integration of NBS into hydropower planning. Dr. Senaka agreed, noting that hydropower development remains nationally driven, but regional organizations can play facilitative roles by advising and connecting environment ministries to promote ecosystem-based approaches. Integrating NBS into hydropower development, he concluded, should be a regional priority for sustainability and resilience.

Prof. Oki next invited Mr. Qian (GIB) to discuss how intangible ecosystem values—such as biodiversity, ecological stability, and food security—can be factored into cost–benefit analyses (CBA) for hydropower planning.
Mr. Qian noted that traditional CBA frameworks often overlook non-market ecosystem benefits. NBS, however, provide multiple co-benefits—such as sediment control, reduced maintenance costs, flood regulation, biodiversity enhancement, and carbon sequestration—that are vital to long-term sustainability. He introduced emerging tools such as SAVi, which enable holistic valuation by integrating environmental, social, and economic dimensions. Despite their substantial monetary value, NBS often lack direct financial returns, making private sector investment challenging. Innovative financing mechanisms and government commitment are thus essential to mainstream NBS in hydropower and infrastructure planning.

Prof. Oki concluded that integrating economic, environmental, and ecosystem assessments through continuous dialogue and knowledge sharing can lead to more balanced hydropower planning decisions.

The discussion then turned to eco-friendly reservoir construction. Mr. Khalid Pasha (IUCN Asia) emphasized that while hydropower harnesses natural energy, it is not inherently a nature-based solution. Achieving biodiversity conservation alongside hydropower requires case-specific planning and strong stakeholder engagement, especially with downstream rights holders. Hydropower impacts vary across regions—from Bhutan to Southeast and East Asia—necessitating robust mitigation measures and alignment with Other Effective Area-Based Conservation Measures (OECMs) to safeguard biodiversity. Eco-friendly hydropower, he noted, is possible only through holistic planning and integration of conservation objectives.Dr. Ai Sugiura (UNESCO) shared UNESCO’s efforts to promote sustainable hydropower through designated sites and demonstration projects in China, Indonesia, and transboundary areas. These sites—such as Biosphere Reserves, Ecohydrology demonstration sites, and UNESCO Global Geoparks—serve as models for integrating hydropower operations with ecosystem conservation. UNESCO disseminates lessons learned through global meetings, open-access knowledge platforms, and training via Category II Centres and UNESCO Chairs, fostering the uptake of sustainable practices across member states.

Interaction with the audience

During the Q&A with the audience, a representative from Malawi shared a pilot “deep bed farming” initiative in the Congo Basin, capturing over 90% of rainfall, and asked how similar practices are promoted in Asia.

Dr. Hafeez responded with examples from India, Nepal, and the Indus Basin, where community-led NBS and MAR interventions have been scaled up, engaging thousands of women and farmers. These initiatives enhance irrigation reliability, domestic water access, and community resilience. Similar approaches are also applied in Benin and South Africa, demonstrating cross-regional adaptability.

Another audience from the Water Convention Secretariat (UNESCO)asked how hydropower development is addressed in transboundary nexus dialogues. Panelists noted that while many programs do not directly focus on hydropower infrastructure, they inform basin planning, environmental assessments, and water allocation frameworks that shape hydropower decisions. Increasingly, hydropower projects are being assessed under international sustainability standards that incorporate social and environmental safeguards, as well as cumulative impact assessments.

A question from the ECOWAS Water Management Centersought lessons from Mekong and Asian policy frameworks for replication in Africa. Panelists emphasized that successful implementation depends on enabling national policies, cross-sectoral coordination, and regulatory alignment, supported by regional and international cooperation. Dr. Mohsin shared experiences from the Volta Basin, noting that nexus frameworks developed in Asia are being adapted to optimize water, energy, and food systems in Africa.

Dr. Matthew McCartney (IWMI) commented that while hydropower inevitably has environmental impacts, strategic basin-level planning is key. This involves identifying suitable dam sites while preserving free-flowing rivers, managing reservoirs as multifunctional ecosystems, maintaining sediment and ecological flows, and considering alternative energy sources such as solar and wind. Hydropower, he noted, retains value for storage and energy balancing but must be integrated into multi-sectoral planning for sustainability.

Session Wrap-up

Mr. Raymond Valiant, GWP-SEA Regional Coordinator, summarized the discussion, highlighting that the WEFE nexus remains a vital framework for integrated resource management. Asia faces mounting challenges from climate change and resource scarcity, with freshwater ecosystems under increasing pressure from development.
He emphasized that:

• Hydropower must be balanced with ecological and social safeguards.
• NBS are central to moving from sectoral silos toward integrated systems thinking.
• Digital tools and data platforms are essential for decision support, though financing and scaling remain challenges.
• Inclusion, equity, and transboundary cooperation are critical enablers.

Prof. Oki closed the session by noting that while NBS alone cannot address all challenges, combining nature conservation with renewable energy innovation offers a pathway toward sustainable and resilient development.

(Reported by Yumiko Asayama, Chief Manager)