Regional Leadership Forum Advancing Sustainable Hydropower in Latin America and the Caribbean

1. Measuring Sustainability
Cameron Ironside
Rio, Nov 2012

2. www.hydrosustainability.org
Protocol evolution
World Commission
Initial Sustainability
on Dams Final
Assessment Protocol
Report
Official Protocol launch
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
IHA Sustainability
Multi-stakeholder Forum refines
Guidelines Protocol
the Protocol
Training
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Aspects of sustainability covered
The Protocol encompasses all aspects of sustainability
TECHNICAL ENVIRONMENTAL SOCIAL ECONOMIC AND INTEGRATIVE
FINANCIAL
Siting and design Downstream flows Project affected Economic viability Demonstrated need
communities and and strategic fit
livelihoods
Hydrological resource Erosion and Resettlement Financial viability Communications
sedimentation and consultation
Reservoir planning, Water quality Indigenous peoples Project benefits Governance
filling and
management
Infrastructure safety Biodiversity and Cultural heritage Procurement Integrated project
invasive species management
Asset reliability and Waste, noise and air Public health Environmental and
efficiency quality social issues
management
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Protocol documents
Background document:
Four methodology documents for four stages of development:
Early stage Preparation Implementation Operation
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Protocol topics (1)
P I O
Communications and Consultation l l l
Governance l l l
Demonstrated Need and Strategic Fit l
Siting and Design l
Environmental and Social Impact Assessment and Management / l l l
Environmental and Social Issues Management
Integrated Project Management l l l
Hydrological Resource l l
Asset reliability and efficiency l
Infrastructure Safety l l l
Financial Viability l l l
Project Benefits l l l
Economic Viability l
Procurement l l 5

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Topic structure
Statements of Description
and Intent
Scoring Levels from 1-5
For each criteria
Level 3 - Statements of
Basic Good Practice
Level 5 - Statements of
Proven Best Practice
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Sustainability profile
O-1 Communications
O-19 Downstream
and Consultation O-2 Governance
Flows
O-18 Reservoir O-3 Environmental and Social Issues
Management Management
O-17 Water O-4 Hydrological
Quality Resource
O-16 Erosion and O-5 Asset
Sedimentation Reliability
O-6 Infrastructure
O-15 Biodiversity
Safety
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O-14 Public 2 O-7 Financial Viability
Health
3 Basic good practice
O-13 Cultural
Heritage O-8 Project Benefits
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O-12 Labor and Working Conditions
O-9 Project-affected Communities and
5 Proven best practice Livelihoods
O-11 Indigenous Peoples
O-10 Resettlement
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IHA Sustainability Partners
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Ensuring Integrity
• Standardised methodology and process
• Replicability and Quality Control
• Qualified assessors:
• Accreditation
• ISO17024
• Experience
• Training
• Governance Committee
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• Protocol documents: background and four stages
• Charter, and Terms and Conditions
• FAQs and news
• Database of published Protocol assessments
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Scope
The Protocol provides:
• A focus on hydropower, allowing emphasis on a number of
topics of particular importance in the sustainability of
hydropower, including technical and financial topics;
• Four separate tools that are tailored for each stage of the
development of a hydropower project;
• Scoring of the project in relation to basic good practice and
proven best practice, allowing immediate comparison with
industry practice, and comparability through time;
• Promotion of the criteria of assessment, management,
stakeholder engagement and support, conformance,
compliance and outcomes through all sustainability topics.
Significant gaps identified in a Protocol assessment report
correspond directly to actions in an Environmental and Social
Action Plan (PS 1 requires an ESAP) .
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IFC Performance Standards and World Bank
Safeguards
• Financial institutions included in Forum, referring
to a wider Equator Principles FI’s working group on
hydropower
• World Bank was an observer to the Forum and
continues as observer to the Protocol Governance
Committee
• Now: financial institutions and development banks
chamber in Protocol Council, elected chair will sit
on Governance Committee
• Ten Protocol topics correspond to IFC Performance
Standards and World Bank safeguards, and cross-
cutting issues strongly align
• Protocol scoring system draws on IFC approach of
continuous improvement
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Comparison with Implementation tool
IFC Performance Standards World Bank Safeguards Protocol topics
1 Assessment and Management of Environmental Assessment I-1, I-3
Environmental and Social Risks and Impacts
2 Labour and Working Conditions I-12
3 Resource Efficiency and Pollution Prevention Pest management I-18
4 Community Health, Safety, and Security Safety of Dams I-5, I-9, I-14
5 Land Acquisition and Involuntary Resettlement Involuntary Resettlement I-9, I-10
6 Biodiversity Conservation and Sustainable Natural Habitats I-15, I-3
Management of Living Natural Resources Forests
7 Indigenous Peoples Indigenous Peoples I-11
8 Cultural Heritage Physical Cultural Resources I-13
Safety of Dams I-5
International Waterways I-20, I-23, cross-
cutting
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Alignment
• Protocol topic intent statements strongly align with the
objectives of the Performance Standards
• Protocol Assessment Guidance includes Performance
Standard requirements, applicability will vary with context
• Across all topics, basic good practice requires adequate
assessment of impacts and risks as set out in PS 1, whilst
proven best practice requires a broader view than the
project
• Consistent expectation at the level of basic good practice
of general support amongst directly affected stakeholder
groups, also corresponds to PS 1
• Protocol Assessment provides information for screening
and due diligence, especially when ESIA is limited in scope
or analysis
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Using the Protocol with IFC Performance Standards
• Assessment report could be used to inform
whether PS’s are met
• Protocol Assessment report provides hydro-
specific detail, and findings are backed up by
evidence
• Performance below Level 3 on any particular
topic should not rule out financing; the point is
to use the financing to incentivise
improvements
• The Protocol is useful for supervision /
reporting, as it offers results that are
comparable through time.
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