Sustainable Environmental Outcomes from Water-related Energy Projects

This paper examines how two of the Kyoto Protocol mechanisms— the clean development mechanism (CDM) and emissions trading— have been applied to two water-related renewable power-generation projects. Traditional concerns related to hydropower developments are examined and discussed in the light of assessments carried out for a SMEC International promoted hydropower project in Nepal, which intends to sell power to India. SMEC International is promoting the idea of viewing the hydropower development under the CDM to the Nepalese and Indian governments, so that potential emission credits generated can be of mutual benefit to all three parties. SMEC International has been assisting the Government of Gujarat, India, in assessing various environmental issues related to the bold and imaginative proposal KALPASAR, which intends to dam a gulf and harness the high tidal variations to generate nearly 5000 MW of renewable power. The Government of Gujarat is proposing to seek national/international private sector involvement, thereby providing opportunities for developed country commercial entities to invest in a large-scale renewable energy project which can be considered under CDM, enabling emission credits generated to be of mutual benefit to relevant parties.