Climate-related water risk: Drought, changing rainfall, erosion, sedimentation, and declining watershed health
Solution pathway: Watershed restoration, reforestation and ecosystem protection
Business type: Large utility / binational company
Sector: Energy and hydropower
Geography: Brazil and Paraguay
In Practice
Itaipú Binacional, which operates one of the world’s largest hydropower plants on the Paraná River between Brazil and Paraguay, has long treated watershed protection as part of energy security. Since the construction of the dam, it has invested in watershed restoration, reforestation, protected areas, and sustainable land management around the reservoir and wider catchment.
These efforts help reduce erosion, improve natural filtration, regulate water flows, and protect the quality and reliability of the water system that the dam depends on. Itaipú has planted millions of trees and protected large areas of forest, showing that ecosystems can function as critical infrastructure for businesses and utilities that depend on water.
Why this example was selected
This case study was curated because it shows water as a direct business input for the energy sector. Itaipú Binacional depends on reliable water flows for hydropower generation, so watershed health is central to its long-term energy resilience.
Itaipú Binacional has received international recognition for its water management work. In 2015, the company received UN-Water’s Water for Life Award for best practices in water management. The case shows natural ecosystems functioning as critical infrastructure: reforestation, protected areas, and watershed restoration help reduce erosion, support water quality, and maintain the flows needed for electricity generation.

