Itaipú Binacional

Protecting watersheds for hydropower resilience

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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

Hydropower depends directly on reliable water flows. Drought, deforestation, erosion, and changing rainfall patterns can all threaten electricity generation by reducing water availability, increasing sedimentation, and weakening the ecosystems that regulate river systems. 

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. 

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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. 

Key Lesson

Businesses that depend on water for energy generation can reduce climate risk by investing in the health of the watersheds and ecosystems that sustain water flows. 

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