The Intergovernmental Panel on Climate Change (IPCC) has indicated that emission of Greenhouse Gases causing global warming would have devastating consequences for the entire human race. Under Kyoto protocol industrialised countries have committed to reduce their emissions of GHGs. Clean Development Mechanism is one such mechanism in which emission can be reduced by purchasing emission credits from other countries by investing in their projects. Development is a basic human need with power being backbone thereof. In India, it is estimated that only 31% of the rural households and 45% of the urban households have access to electricity - but that too with frequent power cuts. In view of constantly rising demand for power, India needs to add approximately 100,000MW of Power in another one decade. India has approximately 135,000MW of untapped hydropower potential including small hydro. This is an opportunity for Developed nations to avail credit for CO{sub}2 emission reduction by investing in India. The authors have tried to present a case for accepting even large hydropower projects as a good candidate for CDM benefits and ways for removing barriers to their development as CDM projects especially in the Indian context in view of the inherent advantages of hydropower and benefits which accrue to various sectors of economy and environment especially in abating CO{sub}2 emissions. The anti-dam groups want to define hydropower projects greater than 10 MW as nonrenewable energy sources with the specious argument that large hydro are not a sustainable option. The fact is all hydropower projects irrespective of size and type are conceptually and technically the same and are based on the science of hydrology and hydrological cycle. Hence limiting a hydropower project up to 10 MW only as a renewable energy source would be an injustice with developing countries. Another controversy that reservoirs emit even more GHGs than by Thermal/Gas based power generating options is also an attempt to confuse the issue to discredit hydropower.
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