Hydropower’s Contribution to the Environmental Integrity of the Embryonic Chinese Carbon Market

This paper discusses how hydropower can contribute to the environmen- tal integrity of the Chinese carbon market and support low carbon initia- tives and policies in China. It also explores the scientific research that questions the carbon neutrality of hydropower due to the release of nota- ble quantities of greenhouse gases through the creation and operation of a hydroelectric reservoir. The authors provide a comprehensive analysis of how current carbon market mechanisms and management should be maintained, strengthened and/or enhanced in order to optimise the pro- vincial carbon markets of 2014. Based on the literature review and dis- cussion, the authors provide nine principle recommendations. Such rec- ommendations include a verification of the data provided regarding hy- dropower installations and watersheds through various means such as GIS, aerial photography and the cross-referencing of records; and the use of the Strategic Environmental Assessment in addition to the already pre- scribed Environmental Impact Assessment and guidelines for small hy- dropower Should these recommendations be followed it would result in more robust emission trading policies and practices within the hydropow- er sector which could then be used as a template for other carbon reduc- tion technologies within the Chinese power industry.