Open Development Mekong publishes a page on ‘Hydropower and foreign investment’
Open Development Mekong recently published a page on ‘Hydropower and foreign investment’ as part of a series looking at Foreign Investment in the Lower Mekong Region. The beginning of the 21st century saw a return to investment in hydropower. Behind this hydropower boom has been South-to-South investment (investment between Global Majority developing countries), becoming a critical source of technological and financial transfer. Between 2004 and 2012, the trade in hydropower technologies between South-to-South increased from below 10% of total global trade to nearly 50%. China has been a strong financier of infrastructure projects as part of its Belt and Road Initiative, investing nearly $25.85 billion globally. Through this investment, China has emerged as one of the main financiers of hydropower projects, particularly in the Lower Mekong Region. Hydropower is seen as integral in the push towards green energy development in the Lower Mekong Region, with countries such as Vietnam and Thailand outlining their plans for green growth. However, hydropower projects are often announced against the backdrop of community and NGO protests and opposition to the projects, with the economic interests of companies foregrounded against the livelihoods of local communities. Whilst the shift to renewable energy is imperative in the face of rising global temperatures, using energy sources such as hydropower needs to be considered in the face of the long-term harm that hydropower projects do to the environment and the local communities.
