Natural capital on which hydropower sector depends

  • Water supply
  • Watershed functions.
Impacts of unsustainable practices on natural capital Large dams disrupt flow and connectivity of river systems; Impacts on water resources downstream;

Biodiversity loss and carbon emissions from newly formed reservoir.

Impacts of declining natural capital on hydropower and other sectors Increased sediment loading into reservoir due to deforestation Reduction in operation life of dam and increased maintenance cost; Reduced water supply can affect production capacity;

Increased sedimentation and reduced water supply can also impact drinking water supply and fishery sector.