Investments and lending can be used to help developing countries prosper in a sustainable way. Energy investments not only provide jobs and power, they also offer important development opportunities. However, harmful investments along with risky and rushed, unsustainable developments can rob countries of their most precious assets—and threaten the reputations, and capital, of banks and investors.
Given the urgent climate-change challenges our world faces, you might expect WWF (World Wide Fund for Nature) to support rapid investment in hydropower projects to deliver renewable energy. Hydropower plants currently provide the largest source of renewable energy in developing countries. However, hydropower developments can also bring serious environmental risks. They can affect hydrology and fragment river systems. They can stop the movements of migratory fish and wildlife; trap sediment, resulting in, for example, erosion of river banks, changes to water tables and impacts on spawning grounds that impact fisheries; and trap nutrients, potentially altering aquatic food chains and soil fertility downstream.
Each hydropower project is unique, as are its effect on the environment.
Read more from source: How Banks Can Ensure Their Capital Is Being Used in a Sustainable Way