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.
An Lambrechts is a biodiversity politics expert at Greenpeace International with extensive experience in biodiversity-related multilateral negotiations. She is the head of the Greenpeace delegation at the Convention on Biological Diversity (CBD) COP17 happening in Yerevan, Armenia.
In 2022, COP15 delivered the landmark Kunming-Montreal Global Biodiversity Framework to halt and reverse biodiversity loss by 2030. With COP17 starting in Yerevan, we are now halfway to the deadline, and according to the first Global Review of progress, countries are not on track to meet the biodiversity targets, and implementation must accelerate fast.
One of the main findings of the Global Review is that funding falls far short of the scale needed to halt and reverse nature loss. But the crisis facing the world’s biodiversity is not an absolute scarcity of capital – it is a profound public policy distortion.
The global economy currently spends roughly $30 destroying nature for every single dollar invested in its protection. According to a report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, a staggering $2.4 trillion is spent in public subsidies for fossil fuels, agriculture and water use, while global investment in biodiversity conservation and restoration stands at a mere $220 billion.
Countries urged to ramp up “insufficient” nature policies at COP17
Yet, discussions about how to close the biodiversity finance gap continue to claim that salvation lies in mobilising private capital, scaling offsets and “derisking” investments in nature. This is a fundamental misunderstanding of both the nature of ecological stewardship and of the global financial architecture.
Biodiversity conservation is not a speculative investment portfolio – it is the foundation of human survival. The health of our planet is a non-monetisable, non-excludable public good. Expecting profit-seeking private capital to protect nature perpetuates the structural drivers of ecosystem destruction in the first place.
But if private market mechanisms cannot save biodiversity, where will the necessary public resources come from?
Money going to the wrong places
The answer lies in recovering the vast public wealth currently drained by cross-border tax abuse, financial secrecy and corporate impunity. Finance and environment ministers meeting in Yerevan must give a strong political signal that, to avert ecological breakdown, countries need to take swift action to reform global tax rules, eliminate harmful public subsidies and cancel unsustainable sovereign debts for the public revenues to end up where they belong.
Extractive sectors such as industrial agriculture, fishing, timber and mining continue business-as-usual, often heavily subsidised by public treasuries, while voluntary carbon and biodiversity offset markets pose a serious risk to nature conservation. Offset schemes have delivered only a negligible fraction of the funding needed to preserve ecosystems, allowing industries to continue with their destructive business-as-usual practices.
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In advanced economies, public funding often actively undermines biodiversity. In Europe, over €5.3 billion in public subsidies is funnelled annually into intensive forest biomass harvesting under renewable energy directives, degrading primary forest ecosystems and undermining long-term climate resilience. Pleading with private investors to fill a “finance gap” while pouring billions into ecological destruction is an exercise in futility.
Developing countries struggle with debt burden
For developing countries, reliance on private finance is further compounded by a crushing sovereign debt crisis. In 2024, public debt in developing economies reached record levels, with net interest payments alone absorbing $921 billion. A record 61 developing countries now spend more than 10% of government revenue on foreign debt service, with many climate-vulnerable nations spending twice as much servicing external debt as they receive in climate and biodiversity finance combined.
This burden acts as a structural driver of ecosystem destruction. Under pressure from external creditors and international financial institutions to avoid default and secure foreign exchange, governments are routinely forced into austerity measures and pushed to expand raw commodity exports into pristine biomes.
Comment: World Bank and IMF should lead the financial system in responding to the climate crisis
The current negotiations for a United Nations Framework Convention on International Tax Cooperation (UNFCITC) also offer a way forward. An estimated $492 billion in tax revenue is lost every year to offshore tax havens. Multinational corporations account for around $348 billion of this total by shifting profits away from the countries where real economic extraction and environmental degradation occur.
In the mining sector alone, developing nations lose tens of billions annually to corporate tax dodging. Furthermore, international financial secrecy shields environmental criminals, with illicit financial flows from illegal logging draining between $51 billion and $152 billion annually.
At COP17, leaders must seize the opportunity to build a bridge between the two conventions and enhance cooperation. Governments must put the world on a firm path to securing predictable, sufficient, sovereign public finance for biodiversity conservation. It’s the only path to a restorative, rights-based future for people and the planet.
The post Protecting nature is a public duty, not a Wall Street profit opportunity appeared first on Climate Home News.
Protecting nature is a public duty, not a Wall Street profit opportunity
Climate Change
Greenpeace delivers 47 metre-long petition with half a million signatures to Woodside HQ following major gas protest
Greenpeace delivers 47 metre-long petition with half a million signatures to Woodside HQ following major gas protest
PERTH, Monday 19 October 2026 — Dozens of Perth community members delivered a giant petition, signed by almost half a million people, to Woodside’s corporate headquarters this morning, calling on the government to save Scott Reef from Woodside’s reckless Browse gas proposal.
Dressed in sea creature costumes and hats, supporters carried one of Australia’s biggest environmental petitions to Woodside’s headquarters, and a local choir performed a ‘Scott Reef’ rendition of Angie McMahon’s iconic cover of ‘Reckless’ by Australian Crawl.
On the sidelines of the Perth Global Citizen Now event, it comes following a two day-long protest at Woodside’s Scarborough gas platform that saw activists scale and occupy the Floating Production Unit calling to “Stop Woodside’s Dirty Gas” and “Save Scott Reef”. The activists were taken from the platform by police helicopter on Sunday afternoon.
David Ritter, CEO at Greenpeace Australia Pacific, said: “Less than a day after two Greenpeace Australia Pacific activists were arrested for their peaceful protest at Woodside’s Scarborough gas platform to save Scott Reef, we are here again with another message to Woodside: half a million of us do not want your dirty gas at Scott Reef.
“Community pressure on Woodside is rising. Today we are here to show Woodside that they can’t ignore half a million people who want Scott Reef protected, not turned into an industrialised gas zone.
“Woodside can’t be trusted with our oceans. Woodside’s plans to drill up to 57 toxic wells at Scott Reef, Australia’s largest oceanic reef, putting endangered pygmy blue whales at risk, and jeopardising a nesting ground for unique green sea turtles.
“We Australians love our oceans and this is an opportunity for our governments to do the right thing, to reject Woodside’s reckless drilling plans, and save Scott Reef.”
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Media contact
Kate O’Callaghan on +61 406 231 892 or Emma Sangalli on +61 431 513 465
Climate Change
Greenpeace Australia Pacific activists in police custody after two-day protest against Woodside’s Browse gas project at Scott Reef
PERTH, Sunday 18 October 2026 — Two Greenpeace Australia Pacific activists are in police custody after occupying a gas platform at Woodside’s Scarborough gas project, in peaceful protest of the fossil fuel corporation’s plans to drill for oil and gas at Scott Reef.
NEW footage and photos of the peaceful protest available here and on Instagram
The activists used specialised climbing equipment to scale and attach themselves to a Floating Production Unit (FPU), a key piece of gas processing infrastructure at the Scarborough gas field over 200km off the coast of Exmouth, at around 05:45am AWST on Saturday and proceeded to occupy the platform for two days, displaying banners reading “Stop Woodside’s Dirty Gas. Save Scott Reef.”
Special police forces landed a helicopter on the FPU at around 11:30am AWST. The activists safely removed themselves from their equipment before being taken into police custody around 1:00pm AWST. At the time of writing, no charges have been laid.
David Ritter, CEO at Greenpeace Australia Pacific, said: “It takes guts and conviction to do what our activists have done, peacefully protesting Woodside’s reckless gas plans at Scott Reef.
“Woodside’s plans to drill up to 57 toxic wells at Scott Reef are outrageous. If allowed to go ahead Woodside would turn Scott Reef, Australia’s largest oceanic reef, home to nesting green sea turtles and elusive pygmy blue whales, into an industrial gas zone. Around half a million people have called on our governments to stop Woodside and to save Scott Reef.
“Our activists are highly trained and experienced in these activities. West Australia has a proud history of peaceful, democratic protest at sea, to protect our oceans from environmental threats. From whaling in Albany in the seventies, to Woodside’s threat to Scott Reef today, there’s more than fifty years of history, of Greenpeace taking action off WA’s coast to protect the places we love.
“Peaceful protest has long been part of what has given us so many of the things that are great about Australia and is part of the fabric of our democracy and our national identity.”
“The right to peaceful protest is fundamental to a healthy democracy. From Australia to the Arctic and the Amazon, Greenpeace has been peacefully protesting for more than 50 years to expose the biggest environmental threats around the world. We will not be silenced by corporations like Woodside who actively try to stop everyday people from speaking out against their reckless plans.
“Woodside’s reckless proposal to drill at Scott Reef is an unacceptable risk to Scott Reef and to the climate, which our government should emphatically reject.”
Speaking from the Rainbow Warrior, Captain of the Rainbow Warrior Hettie Geenen, said:
“It felt powerful watching from the Rainbow Warrior as these brave activists scaled Woodside’s enormous and imposing gas infrastructure, which has no place at Scott Reef. We are all out here because we feel an urge to act, in the face of Woodside’s grave threat to Scott Reef and to our climate. Now we ask for the Australian government to act too, and reject Woodside’s reckless Browse project.
“Just before this peaceful protest, the Rainbow Warrior sailed to Scott Reef, where our whole crew got to witness the magic of an untouched, healthy reef ecosystem full of marine life. It was my second time visiting Scott Reef with the Rainbow Warrior. When you see Scott Reef up close and witness its magic first hand, it is impossible not to feel driven to try and protect it.”
The activists sailed to Scarborough on the Rainbow Warrior, Greenpeace’s flagship vessel, which is in the region campaigning to protect Australia’s oceans, including Scott Reef.
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Media contact
Greenpeace Australia Pacific media team in Perth on +61 406 231 892 or +61 407 581 404 or email media.au@greenpeace.org
