This story was originally published by Yale Environment 360.
After a decade of declining to finance large hydroelectric dams, the World Bank is getting back into the business in a big way.
Throughout the last half of the 20th century, the bank was the world’s leading supporter of big hydro. But over the last two decades, it followed a zigzag pattern as dam supporters and critics inside the institution took turns determining hydro policy.
During the last 10 years, the critics — disturbed by big dams’ huge social and environmental costs and their long construction timelines — seemed to dominate, and the bank supported only one new big hydro project.
But earlier this week the bank’s board of directors approved a scheme to make the bank the lead financier in a $6.3 billion project to finish construction of the Rogun Dam in Tajikistan. The frequently stalled project, launched in 1976, is now about 30 percent complete. If fully built, it would become both the world’s tallest dam, at 1,100 feet, and with its total price tag of $11 billion, one of the world’s most expensive.
The World Bank and Democratic Republic of Congo officials also have been negotiating the terms of a deal that would include financing Inga 3, the third of eight proposed dams in a megaproject known as Grand Inga.
Jaw-dropping in scale, Grand Inga is a $100-billion venture that would be the world’s largest dam scheme, nearly doubling the power output of China’s Three Gorges, currently the world’s largest hydroelectric dam, and potentially bringing electricity to a sizable chunk of the African continent. It would also reconfigure the hydrology of the world’s second-most-powerful river, the Congo, in what opponents consider environmentally harmful ways.
The Three Gorges dam on the Yangtze river in China (Photo: Pedro Vasquez/Flickr)
In addition, last April the bank “agreed in principle” to lead a consortium of international and regional banks financing a $1.1 billion dam, one of Nepal’s biggest, on the Arun River. Called the Upper Arun, the dam is backed by Indian companies, and its electricity is intended for export to India.
But Nepal is already sated with hydroelectricity, and as My Republica, a Kathmandu newspaper, reported in October, it has for several years been wasting massive amounts of produced electricity because of the inadequacy of its transmission lines.
The Upper Arun dam is also being built in a region that’s highly vulnerable to earthquakes and to floods caused by the bursting of ice dams on glacial lakes.
The bank’s role in these projects marks a sharp shift in its approach towards hydroelectric dams. “Rogun and Inga are the biggest dams in the world, on a scale we haven’t seen in decades,” said Josh Klemm, co-executive director of International Rivers, an Oakland, California-based river protection NGO. From 2014 to this year, the bank supported only one new major hydropower project, Nachtigal in Cameroon.
Yet between this week and mid-2025, the bank’s board of directors is likely to approve financing for five major dams, including Rogun and Inga 3.
“We are witnessing a massive move [by the World Bank] to consider financing a range of large projects expected to have huge impacts on river basins, or that have already provoked huge, historic controversies,” said Eugene Simonov, coordinator of the Rivers Without Boundaries International Coalition and a researcher at the University of New South Wales, Canberra, in an interview. “The World Bank is revisiting projects it once dropped because of obvious challenges and risks, but those risks did not go away.”
In response to questions, World Bank officials said in a statement, “There has been no policy change on financing hydropower.” The statement continued, “Nevertheless, it has become increasingly clear that hydropower is an important component of promoting clean energy investments,” citing hydropower’s potential to supplement solar and wind energy.
The World Bank’s support for big hydro has been intermittent since the late 1990s, when social and environmental controversies sparked by its dam-building efforts spurred it to convene an investigative body — called the World Commission on Dams — of 12 independent experts to make recommendations for proper planning, design, and construction procedures for big dams. But the bank found the Commission’s recommendations, issued in 2000, so restrictive that it dismissed them.
Instead, it adopted a policy of “High Risk/High Reward” that wholeheartedly embraced big hydro. But the bank backed off when its dams once again triggered controversy. In 2013, the bank tried again to back big hydro, then backed off until 2018, when it softened its social and environmental standards for such projects.
“We believe the bank’s rediscovered fondness for big hydro reflects a desire by Ajay Banga, the bank’s president since June 2023, to kick off his tenure with a splash, even if that involves overlooking environmental and social issues that previously would have ruled the projects out,” said Klemm.
Ajay Banga speaks at the World Economic Forum (Photo credit: World Economic Forum)
Yet bank officials seem to be playing down hydropower’s renewed prominence in their plans, experts say, noting that they may not want to draw attention to the high costs of building dams at a time when President-elect Donald Trump may be considering ending U.S. support for the bank.
Project 2025, the compendium of controversial nationalist policies devised by advisors close to Trump, says the new administration “should withdraw from both the World Bank and the International Monetary Fund and terminate its financial contribution to both institutions.” The U.S. is the bank’s largest contributor.
No matter how many of these projects result in completed dams, experts believe the bank’s involvement will not alter the global dam-building industry’s current downward trajectory, for many increasingly obvious reasons. These include dams’ enormous upfront costs followed by waits of as long as a decade or more before electricity revenues begin flowing; their destruction of fisheries and riverine ecosystems; their displacement of a conservatively estimated 80 million people around the world and their damage to the livelihoods of a half-billion more; their substantial emissions of methane from some reservoirs; their steep reductions in energy production when drought — which is increasingly common due to climate change — empties reservoirs, as is currently happening in southern Africa and elsewhere; and the seeming coup de grace, their declining competitiveness with increasingly less costly wind and solar installations.
River protection NGOs such as International Rivers argue that the bank’s imprimatur lends an unjustified sheen to the industry, encouraging other regional and international banks to support still more dam projects. “We are writing to express our collective alarm at the notable surge in proposed and recent World Bank support for extensive hydropower development,” began a nine-page, October 23 letter to bank leaders signed by more than 100 environmental NGOs around the world. The letter called on the bank to stop investing in virtually all hydropower projects. The bank answered promptly but cursorily, reaffirming its “partnership” with the NGOs, but it did not address the letter’s points.
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Rogun and Grand Inga have been magnets for controversy for decades. Tajikistan is a locus of competition in Central Asia, with Western, Arab, Russian, and Chinese interests all competing for political and economic leverage; one way for Europe and the U.S. to gain influence with Tajikistan’s leaders is to help them build the world’s tallest dam there. Supporting Rogun may be a particularly potent tactic as the project is highly popular in Tajikistan and, according to Simonov, the nation’s leaders are “obsessed” with the dam.
One of Rogun’s liabilities is that it will displace between 50,000 and 60,000 people, according to a World Bank document. Simonov said engineering firms proposed alternate plans to build a dam that would be at least 115 feet lower and displace up to 30,000 fewer people. Officials rejected those plans, according to Simonov, because their primary interest was in the prestige they believed would come with building the world’s tallest dam.
Between 2033, when Rogun is projected to be completed, and 2039, when its reservoir is slated to be full, the dam will begin generating electricity and, according to an appraisal prepared for the bank’s board of directors, “will bring significant domestic and regional welfare benefits, contribute to the decarbonization of regional power grids in Central Asia, and potentially transform the Tajik economy.”
Of more immediate interest to Tajiks, the dam’s output should eliminate the electricity blackouts that disrupt heating during the country’s cold winters. The catch is that the water that will turn the Rogun power plant’s turbines in the winter will be impounded from the Vakhsh River during the summer, which means it will no longer reach farmers and others who depend on it downstream in Afghanistan, Turkmenistan, and Uzbekistan, according to Simonov.
Rogun will also severely threaten Tajikistan’s Tigrovaya Balka Nature Reserve, a UNESCO World Heritage site, by permanently eliminating floods crucial for sustaining floodplain forests, environmentalists say. And by the time the dam is finished, according to the October 23 letter from NGOs to the World Bank, other renewable electricity options are projected to be far cheaper.
The World Bank appraisal of Rogun categorized the project’s overall risk as “high.” Among the risks it enumerated were the limited experience of Tajik officials, which has resulted in both design and construction delays and “technical and dam safety issues”; the project’s impact on national debt; the poor performance of Tajikistan’s electricity sector, which could limit revenues from electricity sales; and the project’s location in an active seismic zone.
A study comparing greener energy alternatives to Inga 3, published in Environmental Research Letters in 2018, suggests that the dam is not financially prudent. It concludes that in most scenarios, “a mix of wind, solar photovoltaics, and some natural gas is more cost-effective than Inga 3.” Since the study appeared, the costs of solar and wind have only declined.
The post In a major reversal, the World Bank is backing mega dams appeared first on Climate Home News.
Climate Change
Asheboro, North Carolina, Is Under Pressure to Control Discharges of a Toxic Chemical Into Drinking Water Supply
The EPA wants the city of 28,000 to rein in an industrial solvent, 1,4-Dioxane, from its wastewater discharges. So far, Asheboro has refused.
ASHEBORO, N.C.—Some members of the public in attendance at the Environmental Protection Agency hearing last week called the City of Asheboro’s actions “despicable.” Others said they were “shameless.” And still another remarked that those who pollute the water—which data show Asheboro is doing—await “a special circle of hell.”
Cristina Rumbaitis del Rio is a senior advisor on adaptation and resilience and Pan Ei Ei Phyoe is a climate adaptation and resilience consultant with the United Nations Foundation.
COP 30 compels the world to make a decision. Already 3.6 billion people are highly vulnerable to rapidly worsening climate impacts such as droughts, floods, and heat stress. Meanwhile, Glasgow-era climate finance commitments are expiring, and elements of the Global Goal on Adaptation (GGA) are yet to be finalized.
This November provides the opportunity to elevate the issue of adaptation and resilience – and for countries to demonstrate they grasp the urgency and are prepared to act.
Success at COP30 will hinge on how three key questions are answered:
- Will countries agree on a new adaptation finance target backed with real commitments?
- Will countries finalize architecture to track progress toward the Global Goal on Adaptation and implement the UAE Targets for Global Climate Resilience?
- Will adaptation receive elevated political attention at COP30?
A new adaptation finance target backed with real commitments
Belém will test whether negotiators can agree on a new adaptation finance goal that is anchored in clear targets, timelines, and accountability. The Glasgow Climate Pact’s goal to double adaptation finance is set to reach its deadline at the end of this year and countries are facing the question of what, if anything, comes next.
The form of the finance goal also matters: will it be a provision-based target ensuring measurable public contributions, or a mobilization target dependent on less transparent private leverage?
After two consecutive years of falling short, all eyes will be on whether the Adaptation Fund can finally meet its mobilization target and secure a multi-year replenishment to deliver predictable support.
Multilateral development banks (MDBs) are under pressure to demonstrate how to integrate adaptation into country-platform approaches including aligning finance for accelerated country-driven action and providing fast-start financing for implementation of National Adaptation Plans. NAPs have been completed by 67 developing countries and are underway in another 77 countries.
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Vulnerable countries currently need an estimated $215 billion-$387 billion annually to adapt to climate change, far exceeding available funding. And developed countries face growing expectations to renew or grow their bilateral commitments beyond Glasgow-era pledges that are expiring this year or next.
Without tangible new finance commitments, the ambition of the Global Goal on Adaptation risks remaining rhetorical.
System to track progress on the Global Goal on Adaptation
The GGA still has no mechanism to measure progress, despite being established under the Paris Agreement in 2015, shaped through multiple work programs since 2021, and further expanded by the UAE Framework for Global Climate Resilience of COP28 which set 11 targets and launched the UAE-Belém Work Programme.
Agreeing on a robust, streamlined indicator set that is both scientifically sound and usable by countries with differing capacities will be one of the hardest tasks at COP 30. These outcomes will be a test of whether we can move from measuring resilience to building it.
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Negotiators must settle the inclusion of equitable means-of-implementation indicators covering finance, technology, and capacity building. Finally, they must decide what comes next under the UN Framework Convention on Climate Change to ensure the UAE targets are acted upon within the next two to five years.
Those targets include seven that set resilience priorities for water and sanitation, food and agriculture, health, ecosystems, infrastructure, livelihoods and cultural heritage.
Adaptation needs greater political attention at COP30
Last week, COP30 President Corrêa do Lago released the first-ever COP presidency letter focused on elevating adaptation, calling for solutions that will make Belém the “COP of adaptation implementation”. His task now is to embed that principle across every strand of COP30’s delivery architecture.
One test lies in how realistically adaptation is integrated into the Baku-to-Belém Roadmap to $1.3 trillion to be released by the presidency. The implementation of the COP 30 Action Agenda, which provides a blueprint for collective climate action and solutions, could become the bridge between political vision and practical delivery on adaptation.
Questions remain on whether Brazil’s leadership on adaptation thus far will position adaptation as a political priority that will be reflected in leaders’ statements at the opening of COP30. The inaugural High-level Dialogue on Adaptation – hosted by the outgoing COP President Azerbaijan and Brazil – is another opportunity where countries can reaffirm and institutionalize adaptation as a permanent pillar of climate action.
In the role as the host and president of COP30, Brazil has repeatedly stressed the importance of matching adaptation with actual resources and accountability, highlighting adaptation as one of the five guiding stars of the Paris Agreement alongside mitigation, finance, technology, and capacity building.
With the right outcomes in Belém on finance targets, measurement systems, and political commitments, COP30 could be remembered as the moment adaptation financing and implementation finally matched the scale of the challenge.
The post Can COP30 mark a turning point for climate adaptation? appeared first on Climate Home News.
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Cranberry Farmers Consider Turning Bogs into Wetlands in Massachusetts As Temperatures Rise
The state is helping to transform cranberry bogs to into habitats that broaden conservation and climate change resilience.
What happens when a region no longer has the ideal climate for its star crop?
Cranberry Farmers Consider Turning Bogs into Wetlands in Massachusetts As Temperatures Rise
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