Large hydroelectric power projects contribute significantly to the generation of climate-friendly electricity, but they can also cause environmental damage and interfere with vital ecosystems. According to the World Commission on Dams (WCD), these negative consequences can be contained through good planning and project management. A new guideline issued by the German Emission Trading Authority (DEHSt) at the Federal Environment Agency (UBA) has compiled the WCD recommendations for all UNFCCC-accredited entities. Adherence to WCD recommendations will lead to DEHSt acknowledgement of large hydroelectric power plants as climate protection projects within the framework of EU emissions trading.

The Clean Development Mechanism (CDM) in lesser developed countries and Joint Implementation (JI) in industrialised countries facilitate climate protection projects that can lead to reductions of greenhouse gas emissions. Up to now, DEHSt has authorised two large hydroelectric power projects with German participation as CDM projects, namely in China. They are the Yiyang Xiushan Hydropower Project and the Hubei Xuan'en Dongping Hydropower Station.

Large hydroelectric power plants with a capacity over 20 megawatts that observe the WCD recommendations are recognised as CDM or JI projects. These so-called seven strategic priorities are: gaining public acceptance; comprehensive options assessment; addressing existing dams; sustaining rivers and livelihoods; recognising entitlements and sharing benefits; ensuring compliance; sharing rivers for peace, development and security.

The guideline is available for download in German and English.