Rising temperatures have brought more rain and are causing the glaciers feeding hydropower plants to melt faster, leading to more frequent floods and higher water inflows. At the same time, longer and more intense droughts are depleting water basins from Central Europe to the Western U.S., while the changing climate is also shifting patterns of precipitation and, in some places, remolding the landscape altogether. While the physical threat is felt more acutely with every drought and rainstorm, pressure is also rising from another direction. Investors that finance a large share of hydropower projects around the world are increasingly mandating that developers properly prepare for climate change-related risks.
Source: S&P Global Markets