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6/5/2025

Gold certification of Fljótsdalur is first in Europe

The Hydropower Sustainability Standard (HSS) has now been adopted on six continents, marking a major milestone in the global push for sustainable and responsible hydropower.  

This landmark achievement comes as the Fljótsdalur Hydropower Project in Iceland is awarded Gold certification under the HSS, recognising the project's high performance across environmental, social and governance (ESG) criteria.  

Since its launch in September 2021, the HSS has been used to assess and certify projects in Africa, Asia, Europe, North America, South America and Oceania. The addition of Fljótsdalur brings Europe into that fold, signifying that both emerging and established hydropower markets are embracing the drive toward continuous improvement and alignment with international best practice.  

The global momentum has also been supported by capacity-building and training programmes led by the Hydropower Sustainability Alliance. These efforts are helping governments, utilities and project developers build local expertise in applying the HSS and embedding sustainability into project lifecycles. Training has been delivered or is underway in countries including Albania, Nigeria, Mozambique, Malaysia, Morocco, France, China, Colombia, Portugal, Indonesia, Zambia, Greece, Laos and Nepal.

Fljótsdalur Hydropower Project

Eddie Rich, CEO of the International Hydropower Association (IHA), said: “Going forward, the only acceptable hydropower is sustainable hydropower – and the Hydropower Sustainability Standard is the main way to demonstrate it. Hydropower development is picking up rapidly as the world responds to the global need for green, secure, flexible and affordable electricity. But it needs to be clean as well as green. Not only is that the right thing to do – it also ensure that the asset will maximise its effectiveness and its life, and it unlocks finance and permits. That’s why we are now seeing this internationally-recognised Standard adopted in every corner of the world.”

João Costa, Executive Director at the Hydropower Sustainability Alliance (HSA) – the secretariat of the HSS – said: “We are proud to see the Hydropower Sustainability Standard applied across six continents. The progress made over the past three years has been remarkable. Not only are we seeing a growing commitment from hydropower developers to raise the bar on sustainability, but more financial institutions are integrating the principles of the Standard into their risk management frameworks.  

“With many more projects in the assessment pipeline across all regions, this is just the beginning. The future of hydropower lies in transparency, accountability, and long-term sustainability, and the Standard provides a clear pathway to achieving that. As adoption expands, so too does our ability to deliver real, measurable benefits for ecosystems and communities.”  

The growing pipeline of assessments reflects increasing recognition of the value the HSS brings to investors, developers, operators and communities alike.  

The HSS enables projects to be independently assessed against a rigorous set of criteria that cover biodiversity, water quality, indigenous peoples’ rights, community engagement, climate resilience, and more. Projects that meet the Standard’s minimum requirements can be certified, while those that sufficiently demonstrate good or best practice across all relevant topics may be awarded Silver or Gold certification.  

Crucially, the HSS is also designed to support progress over time. Several of the projects awarded Gold certification, such as the Fljótsdalur Hydropower Project, have undergone previous assessments using earlier sustainability tools, and improved performance through targeted action plans.  

With the hydropower sector aiming to double in global capacity by 2050 to meet climate goals, the HSS offers a vital tool to ensure this growth is delivered responsibly – balancing development needs with environmental stewardship and social inclusion.

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