The Ministry of Environmental Protection ("MEP") has recently published the "Circular on Further Strengthening Environmental Protection in Hydropower Construction "(the "Circular").
The Circular puts forward that in hydropower construction, the hydropower development of mainstream and its tributaries, upstream and downstream shall be considered together with the issues of ecological protection, the environmental impact of a single plant and cumulative effects of hydropower development of drainage area shall be considered as a whole to maintaining the integrity and stability of basic functions of river ecosystem. In hydropower development, the principle of "appropriate development" shall be adhered to retain sufficient and necessary habitats for important protected species.
The Circular stipulates clearly in the nature reserves, scenic areas and other areas with special conservation values, in principle the development of hydropower resources shall be prohibited.