Biodiversity risks and safeguards of China’s hydropower financing in Belt and Road Initiative (BRI) countries

Abstract

<h2>Summary</h2> China has emerged as the largest overseas financier of hydropower in low-income countries. Since hydropower dams pose risks to biodiversity, an examination of potential biodiversity impacts of Chinese projects is critically needed. We conducted a biodiversity risk and safeguards assessment of Chinese-funded dams being built in Belt and Road Initiative (BRI) countries. We identified 49 Chinese-funded dams in 18 BRI countries. They pose a risk to 14 free-flowing rivers, 12 critically endangered freshwater fish species, and 134 km² of critical terrestrial habitat. While the overall biodiversity risk is high, dams funded by key Chinese financiers namely, China Development Bank and China Export-import Bank, do not pose a higher risk compared with multilateral development bank (MDB)-funded dams. Chinese regulators do not have binding biodiversity safeguard requirements for overseas projects while the corresponding requirements of MDBs fail to address riverine impact. Robust safeguards and basin-wide planning will allow China to minimize the biodiversity risks of its hydropower portfolio, while still decarbonizing its overseas energy financing.