Biksham Gujja

WWF Position Statement

DAMS AND DEVELOPMENT – A call for follow-up action

Summary

WWF welcomes the report of the World Commission on Dams – Dams and Development: A New Framework for Decision-Making– and congratulates the Commission for having produced a sound set of recommendations given the consensus nature of the Commission's findings. With the dissolution of the Commission, the onus is now on the Consultative Forum which acted as an advisory group to the Commission to identify and shape the actions that must be taken, within a defined timeframe, by the many interest groups involved in the dams issue. This position statement sets out the actions that WWF believes the Consultative Forum should take at its meeting in Cape Town, South Africa on 25-27 February 2001 to follow up on the Commission's recommendations.

Background

The World Commission on Dams (WCD) started its work in May 1998. It was to conduct a rigorous, independent review of the development effectiveness of large dams, assess alternatives for water resources and energy development, and develop internationally acceptable criteria, guidelines and standards for the planning, design, appraisal, construction, operation, monitoring and decommissioning of dams. The final report of the Commission – Dams and Development: A New Framework for Decision-Making– was released in London on 16 November 2000. The report confirms what WWF's own studies have indicated, namely that "large dams generally have a range of extensive impacts on rivers, watersheds and aquatic ecosystems" and that "these impacts are more negative than positive and, in many cases, have led to irreversible loss of species and ecosystems".

As the world's largest independent non-governmental organisation (NGO) concerned with the conservation of biological diversity, WWF was involved throughout in the process undertaken by the WCD, and was a member of the Consultative Forum. The Forum's 68 members meet again in Cape Town, South Africa on 25-27 February 2001 to discuss next steps. This position statement outlines WWF's recommendations to the Forum for follow-up action, which effectively addresses all the interest groups involved in the dam’s debate.

Role of the WCD Consultative Forum

Following the dissolution of the Commission, the WCD Consultative Forum has considerable responsibility and a crucial role to play in identifying the immediate actions that can be undertaken to implement the WCD's Recommendations within a specified timeframe.

WWF believes that the credibility of the report and the impetus generated by the WCD process very much depends on what happens as a result of the Consultative Forum meeting. In this regard, WWF makes a number of specific recommendations for follow-up activities. WWF Recommendations to the Consultative Forum.

WWF urges the Consultative Forum at its meeting in South Africa, to agree to mechanisms and a timetable for the following critical steps implement the WCD's recommendations:

1. National level dialogues

National governments and all stakeholders together to establish independent national commissions on dams, modelled on the WCD; where rivers cross national borders a basin wide dialogue should also be initiated. This is important given concern at the potential lack of continuity following the end of the Commission's work programme.

Governments are urged to establish national level processes to analyse the policy and legal implications of the WCD Recommendations in order to secure the policy changes required. Key countries in which such work could be focused include Brazil, India, China as well as those that have not yet started major dam building programmes. Such national commissions would help to ensure the participation and co-operation of all relevant interest groups, and also provide a forum for dispute settlements.

WWF urges Forum members to advocate establishing independent commissions at national and basin level and to support them with expertise, financial and technical resources.

2. Code of Practice for funders

Ask major institutions that support dams financially ­ for example through loans, export credits and grants ­ to commit to a common minimum standard in dam development. This minimum standard based on the WCD Recommendations would be detailed in an international Code of Practice concerning the financing of dam projects.

A main condition of the Code would state that where one financing agency rejects a dam project because it fails to meet agreed criteria, another agency does not step in to fund the project. Institutions such as the World Bank, Asian Development Bank, private sector financiers, major export/import credit agencies in the European Union, Japan, UK and USA (for example US-Ex-Im Bank; Canada-CEDC; German-Hermes Guarantee; French-COFACE; Japan-JBIC; Italian-SACE; UK ECGD), and development agencies such as DANIDA and DANCED (Denmark), DfID (UK), KfW (Germany), and NORAD (Norway), SIDA (Sweden) some of which are Forum members, are urged to sign-up to such a Code of Practice. WWF requests Forum members to advocate establishing such a Code of Practice and to persuade others involved in dam building to join the process.

2. Funds for WCD implementation.

Ask international partners to provide additional funds to support implementation of the WCD recommendations. The Commission was primarily driven by the international community and the organisations concerned must accept a responsibility to implement the WCD's recommendations.

In many developing countries effective implementation will only be possible in the short term if additional financial resources can be provided to support the policy and practical changes required. Financial resources could be channelled through existing institutions (e.g. the GEF International Waters Programme) with a separate but specific sub-programme 'window'. WWF therefore calls on Forum members, and other bilateral agencies, financial institutions and multilateral organisations to establish immediately a mechanism for providing financial assistance to support WCD implementation, thus capitalising on the momentum generated by the Commission.

4. Monitoring mechanism for WCD implementation.

Request an institutional mechanism, for example a special unit hosted by a Forum member, to act as a 'watchdog' for WCD implementation and a clearing-house for information and expertise.

This would ensure, among others, effective use and development of the WCD Knowledge Base and appropriate training and communications to promote the approach laid out by the Commission. WWF encourages institutions involved in dams to use this mechanism to review and publish the implementation of the WCD Recommendations at regular intervals. Consequently WWF urges Forum members to agree to establish such an informal monitoring mechanism for WCD implementation within 3-6 months.

5. Comprehensive Options assessments.

Request governmental aid agencies, such as DANIDA and DANCED (Denmark), DfID (UK), KfW (Germany), and NORAD (Norway), SIDA (Sweden) to: (i) commit publicly to entering into dam projects (either directly or indirectly, new or ongoing) only where such projects emerge from a process that follows the recommendations of the WCD report concerning options assessment, especially in relation to social and ecological implications;

(ii) actively support ­ through staff time and funds ­ participatory planning and comprehensive options assessments by governments at national level and in river basins.

7. Alternative energy solutions.

Pursue energy efficiency technologies that do not rely on the construction of dams. WWF therefore encourages Forum members to promote the alternative energy and options suggested in the report. There is a particular role for the private sector companies (e.g. ABB) and agencies such as the Asian Development Bank, the Inter-American Development Bank, and the World Bank. There are also opportunities to explore such options in a number of OECD countries where major dams are planned.

8. Ecosystem rehabilitation and livelihoods

Identify and work in pilot regions (e.g. the Mekong basin or the Nile basin) with one or more existing dams to improve ecosystem management and livelihoods.

The aim would be to demonstrate the effect of applying the principles suggested in the report for changing existing operating rules and structures in order to improve natural hydrology and floodplain functions. Prioritisation of pilot regions should be based on conservation status and potential for improvement. Such work will require the identification of potential partner’s ­ local, national and international ­ with results achieved only in the medium term. Several potential partners are members of the Forum.

9. Decommissioning.

Identify and seek to decommission large dams, especially megadams, which are unacceptable due to environmental and social costs, or which are financially ineffective.

Many dams are not delivering their intended services, and in some countries existing dams have become redundant. Decommissioning should be an active and viable solution to restore river ecosystems, and would also address some of the North-South issues related to dams. Forum members are encouraged to support a prioritisation process at national and river basin level to identify dams for decommissioning.

10. Influencing the international debate.

Maximise opportunities at international fora to promote implementation of the WCD recommendations. WWF believes that the WCD recommendations should be recognised as a key component of integrated water resources management in the forth-coming international debate on sustainable development. The preparatory conference in December 2001 in Germany followed by the World Summit on Sustainable Development due to be held in mid-late 2002 in South Africa should endorse the implementation of the Recommendations at national and international levels as part of overall development strategies.

WWF encourages Forum members ­ acting individually or as a group ­ to take steps to seize these opportunities. WWF will play its part in contributing to the debate in the Consultative Forum and in pursuing the actions identified. It is expected that most activities would require working with partner organisations and would need funding over and above current activity. WWF will promote the Commission's recommendations within its freshwater and conservation policy work, especially in areas where a river basin approach is being taken. WWF will give priority to follow-up action agreed by the Consultative Forum meeting.

WWF Position Statement

Necessary steps by all Stakeholders

In welcoming the report and its findings, WWF strongly supports the WCD view that decision-making concerning dam construction should be a transparent process involving all stakeholders. WWF also supports the WCD view that problems arising over dams are usually problems of water resource management, development and energy systems.

WWF welcomes the WCD's Knowledge Base and encourages its further development and use as the central repository for the collection, publication and dissemination of knowledge about the general ecological effects of dams and reservoirs.

WWF endorses the WCD's call urging all groups to "study the report and to discuss how to adopt and adapt its recommendations".

Lastly WWF regrets the lack of a timeframe for carrying out the report's recommendations and therefore calls on all interest groups to make a clear commitment to follow-up within specified time limits to ensure and enable effective implementation of the WCD's Recommendations.

In addition to the above recommendations by WWF to the Consultative Forum, the following steps need to be taken:

1. That governments and the private sector apply the criteria and good practice guidelines outlined in the report and publicly commit to undertake comprehensive options assessments before proceeding with the construction of any dam. Where dams are constructed in future, sufficient attention should be paid in advance taking into consideration of the cumulative impacts in entire basin, to rehabilitating or compensating lost ecosystem functions and habitats, and to the social impacts of dams.

2. That owners and operators of dams evaluate the status and performance of their existing dams, and decommission those dams that do not function satisfactorily from an economic, social or ecological standpoint. Where decommissioning is not an immediate option, carry out measures to mitigate the adverse affects of dams. Such measures could include building fish ladders or passes (that will also provide migratory routes for invertebrate species like insects and crustaceans); instituting ecologically acceptable flow regimes downstream of dams; and additional monitoring and evaluation to determine the economic value of ecological, social and ethical assets adversely affected by the dams.

3. That OECD countries publicly commit to not construct any further large dams (over 15 metres in height), at least for the next two decades, and to adopt alternative and sustainable solutions which are planned across entire water catchments and embrace land, water and ecosystem interrelations.

4. That all interest groups pledge not to enter into the construction of mega-dams (i.e. those over 100 metres in height and/or with a storage capacity of 15 million cubic meters), as the social, ecological and financial evidence necessitates a world-wide moratorium on such dams.

Conclusion

The report of the World Commission on Dams represents a challenge to all stakeholder groups world-wide to work together to implement the report's 'Agenda for Change' and to apply its Strategic Priorities, criteria and guidelines for good practice. WWF applauds the report and recommendations of the Commission and believes that the framework put forward is a good first step in addressing the issue of dams and the needs for energy and water supply. What is now required is commitment from the many interest groups making up the Consultative Forum to take specific actions within a specified timeframe. The effectiveness of the WCD process and the credibility of the commissions report depends on specific follow up actions to demonstrate that the issues related to dams can be resolved through dialogue.