Podcast – How to make hydropower financing in the Mekong Region more accountable?

The podcast episode presents a nuanced discussion on the role of commercial banks funding hydropower in the Mekong Region, and how banks can ensure transparency and accountability.

Large dams, while a source of energy, carry significant consequences especially for vulnerable communities, ecosystems, and local economies dependent on wetlands and fisheries. Often, hydropower projects lead to forced resettlements, disproportionately affecting women in rural and Indigenous communities.

Bernadette (Bea) Victorio, Program Lead of Fair Finance Asia (FFA), explains the recent FFA reportthat details how financial institutions in the Mekong Region can better integrate environmental and social safeguards in their funding of large-scale hydropower projects.

Fair Finance Asia’s report evaluating the policies of banks in Thailand and Vietnam shows there is still some work to be done for integrating environmental and social sustainability in their investment strategies.

Cross-border financing

The podcast also touches on cross-border financing, a critical aspect in the Mekong Region, where financial institutions from one country fund hydropower projects in another.

Many financial institutions based in Thailand and Vietnam invest in hydropower projects across borders, particularly in Laos. This cross-border investment complicates accountability, as countries’ regulatory standards and sustainability principles vary. In this context, Bea emphasizes the need for more harmonized policies that transcend national borders, ensuring that these projects’ ecological and social impacts are mitigated across the entire region.

Read more: https://www.sei.org/features/podcast-hydropower-financing-mekong-region/

Listen to this episode on available channels:

• Podbean
• Spotify
• Apple Podcasts

SEI Asia’s podcast series "Environment and Policy in Asia" focuses on current and critical environmental challenges in Asia and emphasizing policy actions. 

The podcast encourages dialogue on policy and practice about sustainable development in Asia. The podcast series aims to provide a platform for Asia Centre’s researchers to highlight their work, with the communications team as the host.

*Photo: Commercial banks are a significant funding source for hydropower in the Mekong Region. Photo: Rajesh Daniel / SEI Asia.