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CASE STUDY

Itaipú : How natural ecosystems support one of the world’s largest hydroelectric 2

ABOUT THE RESILIENCE SHIFT

The Resilience Shift exists to inspire and empower a global community to make the world safer through resilient . More people than ever depend on the systems that provide essential energy, , transport and services, and underpin food, healthcare and . When this infrastructure fails the consequences can be catastrophic. Supported by Lloyd’s Register and Arup, the Resilience Shift provides knowledge and tools for those responsible for planning, financing, designing, delivering, operating and maintaining critical infrastructure systems. Our aim is to ensure infrastructure systems are able to withstand, adapt to, and recover quickly from anticipated or unexpected shocks and stresses - now and in the future.

DEFINING RESILIENCE

Resilience is the ability to withstand, adapt to changing conditions, and recover positively from shocks and stresses. Resilient infrastructure will therefore be able to continue to provide essential services, due to its ability to withstand, adapt and recover positively from whatever shocks and stresses it may face now and in the future.

AUTHORS CITATION REFERENCE

Amanda Rycerz, Will Bugler, Lydia Rycerz, R., Bugler W., Messling, L., and Messling, and Georgina Wade. Wade, G. (2020) Itaipú Dam: How natural ecosystems support one of the world’s This case study was authored by largest hydroelectric dams. Resilience Acclimatise for Resilience Shift. Shift Case Study.

Cover Image: An aerial view of the Itaipú dam and , Source: Binacional

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the CC BY-NC-ND 4.0 source, provide a link to the Creative Commons license, and indicate if changes were made. 3 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Contents

Introduction and context 4

Diagnose and conceive 8 Sedimentation in the reservoir

Design and deliver 10 Strengthening ecosystems to increase resilience

Operate and maintain 16 Sustaining the remote ecosystems of the Paraná watershed

References 18 4 ITAIPÚ DAM

Introduction and context

The Resilience Shift wants to share good work development. We acknowledge that, with by others, in this case, one of the world’s largest infrastructure projects of this size, hydroelectric dams, Itaipú Dam, and the natural there are inevitable trade-offs for communities ecosystems that regenerate its surroundings and the environments that should be carefully and increase its resilience to change. considered and weighed against the benefits of The case study focusses on the clean energy production. This is a story of the used to enhance resilience of such infrastructure good resilience practice that Itaipú Dam has put developments and does not present an in place since its construction. exhaustive analysis of all aspects of the dam’s

Talking points

• One of the world’s largest infrastructure projects, the vast Itaipú Dam is a modern wonder of the world. Natural ecosystems are crucial to the smooth operation of the hydropower plant. • To ensure the resilience of the dam, Itaipú Binacional has planted over 44 million trees in the company-owned area around the dam, reforesting, restoring and conserving 101,000 ha of land and 421 micro-watersheds. • The hydropower plant produces 90% of ’s electricity, and 16% of ’s. The forests and natural ecosystems ensure low levels in the reservoir, preventing damage to the giant . • A cost-benefit analysis of the Itaipú Preserves program assessed that it provided a Net Present Value of US $45,000,000 based on direct financial benefits alone.1 • Itaipú Dam is an inspiring example of how sustainable and resilient design solutions can be implemented at scale, conserving and regenerating the , managing the effects of , and at the same time, demonstrating financial viability and delivering wider benefits to the communities and the environment.

Constructed in 1984, the Itaipú hydropower plant is one of the largest generators of in the world, supplying 16% of Brazil’s electricity mix, and 90% of Paraguay’s,2 making it a critically important energy source for both countries. From its inception, Itaipú Binacional, recognized that a healthy watershed was integral its operations, and to the well-being of the communities living along the Paraná . 5 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Watershed conservation and restoration have Beginning in the 1970’s Itaipú Binacional always been a central tenet of Itaipú Binacional’s pioneered a series of watershed restoration business model, beginning even before the programs, including forest protection, re- dam’s construction, and are still integral to the forestation, and improved land management company’s strategic approach today. As a result, practices, to create a long-term sustainable Itaipú has become the most efficient hydropower solution to secure a reliable and low-sediment plant in , per cubic meter of water. flow of water for hydropower production, whilst also delivering a broader range of social and The project demonstrates how unified environmental co-benefits to the communities governance can lead to effective resilience and living along the Paraná River. outcomes for infrastructure development. In In 2020, a UNEP and IDB cost-benefit analysis April 1973, the Treaty of Itaipú was created of the Itaipú Preserves program and calculated between Brazil and Paraguay to act as the a Net Present Value of US $45,000,000 legal instrument for the exploitation of the based on direct financial benefits to the dam’s hydroelectric potential of the Paraná River. operators alone.3 In 1974, Itaipú Binacional was created as a company that had the mandate of both Itaipú Binacional takes a whole-system countries to administer the plant's construction. approach to watershed management which The project is a great example of how cross- has delivered enhanced for border co-operation and natural resource hydropower production, alongside a range management can provide sustainable services of social and environmental co-benefits to using nature-based solutions. the communities living along the Paraná river.

The Paraná watershed upstream of the Itaipú dam. Source: Saenz, L., 2017. 6 ITAIPÚ DAM

These efforts have helped to reconstitute restoring, and conserving 101,000 ha of land the conventional narrative that ecosystem and 421 micro-watersheds and restoring 1,600 conservation is at odds with economic km of rural .4 development. It also shows how, by working Itaipú has established itself as a global leader with local communities and other local and inspiration for hydropower producers and stakeholders, projects can be developed other water-dependent industries, worldwide. sustainably. Itaipú Binacional’s efforts include In 2015, Itaipú Binacional received UN-Water’s planting over 44 million trees in the company- Water for Life Award for best practices in water owned area around the dam, reforesting, management.5

A MODERN WONDER

Designated as one of the seven wonders of the Eiffel Towers.7 The 2.6 million tonnes of and modern world,6 the dam reaches the height of a and 12.3 million cubic meters of 65-story building. The amount of iron and steel used to create the dam has a carbon footprint used in the dam’s construction could build 380 somewhere in the region of 11 million tonnes

The Itaipú Dam at night Source: Itaipu Binacional 7 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

of CO2e.i Whilst this undoubtedly makes the dam’s embedded CO2 levels very high, Itaipú has since generated over 2.6 billion-Megawatt hours (MWh)ii of electricity. The median lifecycle emissions of large hydropower plants is approximately 18.5 gCO2e/kWh, compared with 820 gCO2e/kWh for coal and 490 gCO2e/kWh for gas.iii Such is the scale of the dam, that Itaipú inspired the American composer, to create in 1975, preceding the dam’s construction, an opera of the same name (‘Singing Stone’ Itaipú Binacional developed a map for in English) in the language of the indigenous planned conservation and restoration activities Guarani People.8 and projects: the Basic Plan for Conservation of the Environment. Itaipú acquired an area The dam is a modern technological wonder larger than 235,500 ha across Brazil and situated in an ecologically significant area, Paraguay, of which 135,000 ha would be and yet the two are intimately intertwined. used for the reservoir, and over 100,000 ha Without a reliable and clean source of water, would be allocated for forest restoration and the hydropower dam cannot produce energy conversation purposes.9 As a multi-billion dollar and would cease to remain viable. Deforestation bi-national enterprise, Itaipú Binacional could and unsustainable land management practices secure partnerships and mobilize resources for upstream of the reservoir and along the Paraná large-scale watershed restoration efforts that river, reduces water quality and increases would protect and restore ecologically important sedimentation in the waterways, creating areas, while supporting local and indigenous unreliable flows and poor water quality for communities. hydropower production. To date, Itaipú Binacional has planted over Following an outcomes-led approach, 44 million trees in the company-owned area Itaipú Binacional recognized early on that around the dam, and reforested, restored, and the protection of existing forests along the conserved 101,000 ha of publicly and privately- reservoir, and the reforestation of degraded owned land.10 lands, alongside improved land management practices, was essential to enhance water quality, and ensure the longevity of the dam. These nature-based solution would also be more sustainable, resilient, and cost effective than copious amounts of . Hence

i Calculated as 2.3 tonnes of CO2e per tonne of steel as per OECD (2019) plus 0.41 tonnes of CO2e per m3 of structural grade concrete as per A. Samarin (7 September 1999) in Ravindra K. Dhir, Trevor G. Jappy. ii Itaipú Binacional (2020) https://www.itaipu.gov.br/en/energy/energy iii IPCC (2014) / IHA (2018) 2018 Hydropower Status Report: https://www.hydropower.org/news/study-shows- hydropower%E2%80%99s-carbon-footprint 8 ITAIPÚ DAM

Diagnose and conceive Sedimentation in the reservoir

Sediment flow into and blocking dams is a reduces the overall water supply and quality major challenge in Latin American watersheds. available for hydropower production. Sedimentation affects dam safety, storage and In the decades prior to the Itaipú dam capacity, reduces energy production construction, large swathes of native forest potential, and attenuation capabilities.11 In on the Brazilian side of the Paraná river were the Paraná watershed, sedimentation is largely cleared for corn and soy plantations, farms, driven by deforestation for , and poor towns, and meat-packing facilities. Still, today, land management practices, which causes the communities of the Paraná River Basin are exposure and . heavily dedicated to agriculture, in particular, Deforestation can dramatically increase the rate corn and soybean, and livestock and poultry at which sediment moves into rivers, thereby production. Agricultural runoff containing increasing sediment loads above natural levels. pesticides and animal excrement accumulates Deforestation also increases the speed of water in the and eventually flows run-off in the Paraná River and its tributaries, downstream into the reservoir. This contributes increasing peak flows (and sediment loads) to lake eutrophication, which decreases the during the rainy season, and reducing river useful lifespan of the reservoir. Water quality flows during the dry season. Sedimentation is further negatively impacted by sewage and and variable river flow, coupled with variable garbage disposal in or near the watershed, and precipitation patterns driven by climate change, sedimentation associated with rural roads.12

WATERSHED RESTORATION FOR CLEAN WATER

In the planning stages of the Itaipú dam, the provide water regulation and sediment control project team recognized that sediment blockage services to support the dam’s longevity in and unreliable flows during periods of dry a way that would be sustainable with some weather would pose significant challenges to maintenance. the dam’s efficient functioning and performance. Forests offer a number of important water- Sediment could potentially be removed from the related services. They reduce the rate of through dredging, yet this activity is sedimentation, and can store substantial expensive, environmentally harmful, and would amounts of water, (e.g. rainfall stored as have to be completed at a large scale and at ) protecting local catchments regular intervals. through gradual release and helping to regulate This was simply unsustainable. Itaipú Binacional water flow. By virtue of their vast root systems, followed an outcomes-led approach which trees can help to stabilize soil, helping to recognised that the forests and could control soil erosion, and can purify and filter provide an essential service. Restoring forests, water of contaminants.13 Once in place, in particular in a belt along the river, and nature-based solutions, like using forests for changing approaches to conventional land regulating water flow and quality, will continue management practices that impact water to provide their services until they are removed. quality, these nature-based solutions could This type sustainable service provision, when 9 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Reforestation efforts focused on the ‘strip’ or ‘buffer’ surrounding the Itaipú reservoir Source: Itaipú Binacional

well designed, often requires little to no other additional benefits, including helping the maintenance. Crucially, for the Itaipú dam, the dam become more resilient to changing climatic services that are provided by nature are simply conditions and the influence that has on the rate not able to be replicated by other engineered of water flow. solutions. The sustainable solution can be quickly increase in scale, and provides many 10 ITAIPÚ DAM

Design and deliver Strengthening ecosystems to increase resilience

Since the 1970’s Itaipú Binacional has pioneered knowledge widely amongst local communities. a series of watershed restoration programs This has ensures that the initiatives actioned aimed at reducing sediment loads, reducing today continue to receive support and erosion, regulating water flow and encouraging sustainable actions continue to be practiced natural filtration, while generating broader by the local community. 1 describes the co-benefits. The participatory programs have programs carried out to date. engaged with 54 municipalities in the state of Two initiatives; Cultivating Good Water on Paraná, Brazil, 1 municipality in the state of the Brazilian side, and Itaipú Preserves on Mato Grosso do Sul, Brazil and 15 municipalities the Paraguayan side, have been particularly in Paraguay, totalling nearly 1.7 million people.14 successful in enhancing water quality while The extensive involvement of local communities delivering multiple additional social and has helped to deepen the understanding of the environmental co-benefits in a sustainable importance of natural ecosystems to support manner. vital services, and has helped to transfer this

TABLE 1: REFORESTATION INITIATIVES ASSOCIATED WITH ITAIPÚ DAM

Description of Watershed Restoration programs Year

Reforestation on the Brazilian side of the watershed (prior to the Itaipú dam completion) 1979-1981

Designating forest shelters and reserves (Brazil and Paraguay) 1984

Designating additional protected areas on the Paraguayan side of the watershed 2008-2014

Cultivating Good Water (Cultivando Agua Boa) – working with local communities to conserve and restore forest buffers along tributaries of the Paraná in Brazil 2003-2017

Paraguay Biodiversidad (Paraguay Biodiversity) – creating corridors to link remaining areas of natural forest in Paraguay 2011-2017

Itaipú Preserves (Itaipú Preserves) – restoring degraded land in a ‘protection strip’ of forest surrounding the reservoir in Paraguay 2014-2019

Source: IDB, UNEP, WCMC, Acclimatise (2020) 11 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

CULTIVATING GOOD WATER

Cultivating Good Water is a fifteen-year Management Program. The priority areas programme that involves a series of sub- of the program included agriculture, roads, programs and initiatives aimed at improving reforestation and waste management.15 water quality and flows in the Paraná watershed, while achieving a broader range of social and environmental goals including food security, Water is an integral poverty alleviation, health and sanitation, “ input to Itaipú’s business. climate change mitigation and adaptation, and biodiversity support. Water comes not only Cultivating Good Water primarily targets from but from the land-based activities that are detrimental to broader cycle which water quality and flows, and offers education, involves soils, forest, technical assistance, technological , and employment opportunities to improve micro and macro sustainable land management practices. The and more. We are therefore program relies on extensive collaboration not just concerned with and cooperation with thousands of partners including municipalities, NGO’s, universities, ‘water’ but with the entire companies, farmers to structure multi-objective ecosystem process. programs, demonstrating the importance of unified governance across all levels of the project. While Cultivating Good Water concluded - Mr. Ariel Scheffer da Silva, head of in 2017, its concepts and methodologies Environmental Management of Itaipú - Brazil. continue to be carried out under the Watershed

Reforestation

Cultivating Good Water prioritized creating on constructing 30-meter-wide green belts to conservation reserves and restoring riparian protect the river and reservoir from soil erosion, forests with native species along the margins and creating a network of biodiversity corridors or strips of the watershed. The efforts focused linking forested areas along the Paraná river. This corridor linked the margins around the reservoir to two ecologically significant areas that were previously fragmented; Iguaçu National Park and the Ilha Grande National Park. As much of the land along the watershed was privately owned, Itaipú Binacional engaged with 42 private landowners and farmers who agree to lease part of their lands for reforestation. In recognition of the important effort made by farmers that offered 12 ITAIPÚ DAM

A tree nursery growing native tree species for Itaipú’s reforestation projects. Source: Itaipú Binacional

their land to create the corridor, it was named Santa Maria farm which contributed a significant the Santa Maria Biodiversity Corridor after the area of preserved Atlantic forest.16

Farming

The free program helps farmers to access new markets and commercialize organic produce, thereby helping to compensate for potential economic losses associated with taking land out of production.17 Public schools in the region are the primary consumer of organic produce, in addition to local markets and supermarkets. Approximately 1200 farms have converted to organic production and organized a series of Cultivating Good Water supports local farmers broader cooperatives and associations. The along the Paraná in recovering micro watersheds reduction of harmful pesticides and soil erosion through terracing and no-till farming practices. control with appropriate tilling and terracing It supports small scale farmers to transition techniques, reduces the agricultural runoff to organic production and rotate and diversify and contaminants entering the Paraná river, crops, by offering technical support, education ultimately resulting in a cleaner source of water and capacity building. downstream.18 13 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Given the strong local dependence on livestock drive motor generation. The farms can use the and poultry production, Itaipú Binacional in energy produced by the biogas to partnership with 26 institutions, created a biogas operate their farms and high-quality biofertilizers technology that transforms livestock waste into are created as a bi-product of the process. This energy. This technology has been deployed technology reduces or eliminates the amount of on several farms in Itaipú’s area of influence. livestock excrement that leaches into soils and Biomass electricity generation consists of using waterways, while contributing to greenhouse biogas released by decomposing organic matter gas mitigation.19 (e.g. livestock excrements) in biodigesters to

Waste Management

Cultivating Good Water launched a program reduces the amount of recycled waste that to reduce waste in 56 Brazilian municipalities would otherwise end up in landfills, or dumped in the state of Paraná with a recycling program into the Paraná.20 for paper, , and metals. The program involved the construction of recycling sorting sheds equipped with compressors and packaging equipment, electric carts for recycling collection, hiring unskilled workers to collect and sort recycling and education and technical assistance to the community for recycling and waste management practices. The program

Roads

The program also prioritized the re-design of periods of heavy rainfall and reduces the rate of existing rural roads and the construction of new into Paraná tributaries. This roads with permeable materials (e.g. stones, demonstrates the interdependency of the dam gravel) that are slightly raised, allow water to with other infrastructure systems, an important filter through, and do not channel water during reason for taking a whole systems approach to rainstorms. This improves road usability during managing infrastructure assets.21

Itaipú Preserves: recovering degraded areas with native forest species in the buffer zone

Itaipú Preserves is a six-and-a-half-year 1,524 km.22 Restoration activities are focused program (2014-2022) with the goal of restoring on 1,900 ha of degraded land, and an additional degraded land on the Paraguayan strip of 409 hectares set aside for management and land surrounding the reservoir. It is the largest natural regeneration, covering a total area of reforestation initiative in Paraguay, and covers an 2,309 ha.23 Similar to Cultivating Good Water, extensive territory stretching from Hernandarias the program creates and enhances biodiversity to Saltos del Guaira, a total linear distance of corridors in the strip around the reservoirs where 14 ITAIPÚ DAM

they were previously disconnected.24 Parana Atlantic Forest Watershed. This program also focuses on linking the biodiversity corridor Paraguay Biodiversidad is another initiative of the Atlantic Forest Watershed, with the in Paraguay that engages with indigenous Western region of Paraguay, thereby creating peoples, rural agricultural producers, and NGO’s stronger linkages for wildlife. to restore and conserve sections of the Upper

FINANCING

Since its inception, Itaipú Binacional has , city administrators, NGOs, maintained budget for ecological and social farmers, schools, community associations, programs deemed critical to the dam’s businesses and others. Itaipú Binacional funded operations and to Itaipú Binacional’s mission. about 1/3 of the project (about US $8 million in The programs are funded internally, with 2007) through its annual budget for Coordinator financial and implementation support from a and Administration. A further 1/3 was funded by range of external actors. As the programs serve municipalities and the remaining 1/3 was funded the community and the broader ecosystem, by communities and farmers.25 This cross- cost-sharing with other beneficiaries is an community governance has helped sustain the important way to scale up projects. For programme in the long term, creating buy-in example, Cultivating Good Water was led by from all the necessary stakeholders. The Itaipú Itaipú Binacional with implementation support Preserves program will cost an estimated US $9 from hundreds of organizations including million over the project timeline (2014-2022).

Cost-benefit Analysis

A UNEP and IDB (2020) report presents a cost- benefit analysis (CbA) of the Itaipú Preserves program and calculates a Net Present Value (NPV) of US $45,000,000 based on direct financial benefits alone. The CbA compares all the costs associated with implementing the Itaipú Preserves Project (e.g. trees, labor, monitoring, maintenance) from 2014 to 2022 against the avoided costs that they would have otherwise paid for dredging. experienced reduced electricity generation This is further compared against the benefits capacity, and therefore revenue. The project of watershed restoration activities, including cost US $9 million and the NPV calculation was increased capacity for electricity generation as made based on length of time that the forests a result of an enhanced water supply. In other will support the dam, which is calculated as 184 words, if Itaipú Binacional had not implemented years (the remaining lifecycle of the dam from the forest restoration project they would have 2014 onwards). paid extra costs for dredging and would have 15 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Beyond the direct economic benefit to Itaipú Itaipú. Some of these benefits could also be Binacional, the restoration initiatives provide monetized, for example carbon sequestration a range of broader co-benefits (described in could be monetized through carbon credits table 2). While these benefits are not calculated and biodiversity habitat restoration could be in the CbA, they do provide economic monetized through eco-. benefit to the community and potentially for

TABLE 2: ECOSYSTEM SERVICES PROVIDED BY ITAIPÚ’S WATERSHED RESTORATION PROGRAMS

Co-benefit Description of benefits provided by the Itaipú Preserves Program Scale

Employment • The Itaipú Preserves program alone has offered direct employment Local opportunities for 250 and indirect employment for 500 local people. and poverty alleviation

Climate • The reforested protection strip provides a buffer against local climate Local adaptation extremes, for example high winds and storms, and the river and reservoir provides flood mitigation services

Air quality • Forests filter out pollutants, improving local air quality Local

Education • The program has contributed to raising awareness in local Local communities about the value of forests and the benefits that they can receive from restoring and protecting them.

Biodiversity • The reforested biodiversity corridors allow for the genetic flow of Local - conservation fauna and flora. In years prior deforestation created fragmented areas, Global limiting the habitat of critically important species (e.g. jaguar, tapirs). This provides direct biodiversity benefits and has cultural value on a local and global scale. • Importantly, Itaipú Binacional has invested in protecting the remainder of the Upper Parana Atlantic forest which is one of the world’s 25 biodiversity hotspots.

Water quality • The protection strip reduces soil erosion and agricultural run-off, Regional improving water quality for biodiversity and downstream users.

Global • Itaipú Binacional’s total reforestation and conservation efforts on Global climate 101,000 ha capture 5.9 million tons of CO2 equivalent captured each regulation year, which contributes to climate change mitigation

Source: IDB, UNEP, WCMC, Acclimatise (2020) 16 ITAIPÚ DAM

Operate and maintain Sustaining the remote ecosystems of the Paraná watershed

The Paraná watershed is vast and remote, Binacional in conserving and restoring the spanning 38,000 km2 over two countries, Brazil ecosystems around the dam and reservoir and Paraguay. Whilst this is a large area with increase their resilience in order to deal with great potential for investment in nature-based unexpected threats. “Big projects with national solutions (including the potential for restored impact, such as Itaipú Binacional should plots to recover and even earn more than their manage uncertainty” explains Haroldo Silva, restoration costs through carbon trading), only Engineer at Itaipú’s Environmental 101,000 ha of protected areas (1,010 km2) Action Division, “consider the current are decentralized within the lower parts of the [COVID-19] pandemic for example, we were watershed that directly feed into the reservoir. not fully prepared for this so it has been an There are logistical challenges associated with additional cost, one must consider a wide range accessing sites. Access is need in order to of possible scenarios and invest accordingly.” monitor sites (assessing indicators for natural Systemic shocks to the ongoing maintenance land regeneration and vegetation cover in order of the Itaipú Preserves project, as experienced to establish that the areas are becoming self- during the current pandemic, may add sustaining from an ecological perspective), and additional cost to that programme, however the enforcement of the protected areas26. restored ecosystems continue to provide the At present Itaipú Binacional’s watershed water quality services to maintain the smooth restoration efforts focus on the tributaries that operation of the dam itself, in spite of COVID-19. directly feed into the reservoir, in a small region In this way, investments in ecosystem services of Paraguay, the Brazilian state of Paraná, and can help manage uncertainty by creating one municipality in the Brazilian state of Mato an environment that supports the effective Grasso. In fact, only 18% of the total water functioning of the asset, even in times of is generated in the local catchment, with the external threat to human systems. remainder flowing from farther upstream.

Yet unsustainable land practices elsewhere in Brazil, can compromise the water quality Human activity entering the Paraná further upstream. The Human activities such as forest fires, vast size of the watershed means that Itaipú dumping materials, illegal grazing of livestock, Binacional has to prioritize its efforts on deforestation hunting and fishing, are harmful particular regions, and at present cannot cover to water quality improvements. Deforestation the entire watershed. The operation of the dam of primary forest throughout the watershed, is threatened by several external shocks and driven primarily by agricultural expansion is an stressors, both human-driven and natural in ongoing threat to the well-being of the Paraná their origin. river and the reservoir. While communities Combined from human activity, recognize the benefits of restoring degraded invasive species, climate change and linked agricultural lands (that serve no other purpose), extreme events such as forest fires threaten there is less incentive to curb expansion into the delicate ecosystems that provide invaluable remaining native forests where lands are fertile services to the Itaipú Dam. The work of Itaipú for agricultural use. 17 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

Invasive species Raising awareness

The spread of invasive species (e.g. exotic Itaipú Binacional has led many activities grasses), pest outbreaks and extreme weather to enhance awareness about changing events, can further compromise watershed customary land management practices to restoration efforts. On the Paraguayan side, improve water quality, eliminate waste, and small and medium sized farmers struggle to find minimize agrochemical release into the soil efficient ways to control invasive alien species and waterways. This has also included tackling without the use of harsh chemicals that would conventional perceptions in the region that ultimately enter the waterways. land restoration and conservation is at odds with economic development.28 Itaipú has experienced some resistance from community Challenges engaging with members in regard to changing current land community members management practices. As local communities must have a stake in the project in order for Some of the land along the Paraná river and its it to succeed, Itaipú Binacional encourages tributaries is privately owned by smallholders. active participation and tries to build a sense of Farmers perceive that land taken out of ownership among community members. production for reforestation efforts results in Despite its achievements, Itaipú Binacional’s economic losses, particularly in the short-term. influence extends to the local catchment, a Further, the smallholder suffers the direct loss of small section of the much larger tributaries that land, while the benefits are diffuse and accrue to flow into the reservoir. Poor land management everyone. and agricultural expansion farther upstream, Restoration benefits also accrue over longer are resulting in a net forest loss overall and time-scales. While Itaipú Binacional and its consequently reduced water quality.29 Therefore, partners bear the initial restoration costs, there it is Itaipú Binacional’s imperative to scale these are minimal benefits in the short-term. Trees efforts farther upstream and in other states in and forests require years to mature and offer the Brazil, to improve the health of the watershed. full range of services, and require maintenance While there is more work to be done, the in the early years until the trees become self- trailblazing efforts pioneered by Itaipú Binacional maintaining. As a result, reforestation efforts have succeeded in enhancing resilience have been met with some local resistance, through by applying approaches consistent particularly out of concern of a large enterprise with sustainable development, not only for the 27 seizing land from smallholders. hydropower asset itself, but for the communities and ecosystems in the broader area of influence. 18 ITAIPÚ DAM

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14 PNUD. 2018. Panorama ODS: Oeste do Parana em numeros. Brasilia, Brasilia: Grafs. Color.Direccion General de Encuestas, Estadisticas y Censos. 2018. Proyecciones de población nacional, areas urbana y rural, por sexo y edad. Available at, www.dgeec.gov/py/Publicaciones/evoluciontotal.php

15 Ceurvels, M. 2013. Summary – Cultivating Good Water: A Closer Look at Itaipú Binacional’s Sustainable Projects. Americas Society Council of the America. Available at, https://www.as-coa.org/articles/summary-cultivating-good-water- closer-look-Itaipu-binacionals-sustainable-projects

16 IDB, UNEP, Acclimatise, UNEP WCMC. 2020. Increasing Private Sector Uptake of Nature-based Solutions for Climate-resilient Infrastructure. Annex B: NbS Case Studies in and the Caribbean. https://publications. iadb.org/publications/english/document/Nature-based_Solutions_Scaling_Private_Sector_Uptake_for_Climate_Resilient_ Infrastructure_in_Latin_America_and_the_Caribbean.pdf

17 IDB, UNEP, Acclimatise, UNEP WCMC. 2020. Increasing Private Sector Uptake of Nature-based Solutions for Climate-resilient Infrastructure. Annex B: NbS Case Studies in Latin America and the Caribbean. https://publications. iadb.org/publications/english/document/Nature-based_Solutions_Scaling_Private_Sector_Uptake_for_Climate_Resilient_ Infrastructure_in_Latin_America_and_the_Caribbean.pdf 19 HOW NATURAL ECOSYSTEMS SUPPORT ONE OF THE WORLD’S LARGEST HYDROELECTRIC DAMS

18 Itaipú Binacional & UNDESA. 2020. SDG 2: Zero Hunger. End Hunger, Achieve Food Security and Improved Nutrition and Promote Sustainable Agriculture.

19 Itaipú Binacional & UNDESA. 2020. SDG 7: Affordable and Clean Energy. Ensuring Access to Affordable, Reliable, Sustainable and Modern Energy for all.

20 Itaipú Binacional & UNDESA. 2020. SDG 12: Responsible consumption and production. Ensure sustainable consumption and production patterns.

21 IDB, UNEP, Acclimatise, UNEP WCMC. 2020. Increasing Private Sector Uptake of Nature-based Solutions for Climate-resilient Infrastructure. Annex B: NbS Case Studies in Latin America and the Caribbean. https://publications. iadb.org/publications/english/document/Nature-based_Solutions_Scaling_Private_Sector_Uptake_for_Climate_Resilient_ Infrastructure_in_Latin_America_and_the_Caribbean.pdf

22 Itaipú Binacional & UNDESA. 2020. SDG 15 Life on Land. Protect, Restore and Promote Sustainable Use of Terrestrial Ecosystems, Sustainably Manage Forests, Combat Desertification, Halt and Reverse Land Degradation and Halt Biodiversity Loss.

Itaipú Binacional & UNDESA. 2020. SDG 13: Climate Action. Take Urgent Action to Combat Climate Change and its Impacts.

23 Itaipú Binacional & UNDESA. 2020. SDG 15 Life on Land. Protect, Restore and Promote Sustainable Use of Terrestrial Ecosystems, Sustainably Manage Forests, Combat Desertification, Halt and Reverse Land Degradation and Halt Biodiversity Loss.

24 Itaipú Binacional. 2014. PROYECTO ITAIPÚ PRESERVA. Available at, https://www.Itaipú.gov.py/es/medio-ambiente/ proyecto-Itaipú-preserva .

25 Itaipú Binacional. 2014. CULTIVATING GOOD WATER EXPANDS RESULTS IN 2007, Available at, https://www.Itaipú.gov. br/en/press-office/news/cultivating-good-water-expands-results-2007

26 Itaipú Binacional & UNDESA. 2020. SDG 6: Clean Water and Sanitation. Ensuring Availability and Sustainable Management of Water and Sanitation.

27 IDB, UNEP, Acclimatise, UNEP WCMC. 2020. Increasing Private Sector Uptake of Nature-based Solutions for Climate-resilient Infrastructure. Annex B: NbS Case Studies in Latin America and the Caribbean. https://publications. iadb.org/publications/english/document/Nature-based_Solutions_Scaling_Private_Sector_Uptake_for_Climate_Resilient_ Infrastructure_in_Latin_America_and_the_Caribbean.pdf

28 Fernandez, P.C. 2015. Itaipú Powerplant and the ‘Cultivating Good Water’ Program. Technical Report.

29 Saenz, L. 2017. Assessing Impacts of Deforestation in Itaipú’s Dam Watershed in Paraguay. Consultancy for WRI online. Available at, https://initiative20x20.org/publications/assessing-impacts-deforestation-Itaipús-dam-watershed-paraguay

vii Da Ponte, E. et al .2017. Forest cover loss in Paraguay and perception of ecosystem services: A case study of the Upper Parana Forest. Ecosystem Services 24, 200-212. 20 ITAIPÚ DAM

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