China has given the green light to a 10-GW hydropower project on the lower Yarlung Zangbo River in Tibet -  known in China as the Xizang Autonomous Region since 2023 - marking a major step in its renewable energy transition and regional economic development.

The initiative forms part of a national strategy aimed at reaching peak carbon emissions by as early as 2030 and achieving carbon neutrality by 2060. The project will tap into one of China’s largest hydropower resources and integrate it with solar and wind energy installations nearby, supporting efforts to diversify the energy mix and reduce reliance on fossil fuels.

Officials say the dam will also bolster national energy security by delivering a steady supply of renewable energy to help satisfy an increasingly power-hungry growing middle class across China. It is also expected to drive green industrialisation by drawing investment into sustainable energy and related industries in the region.

According to multiple sources in China, the project promises a range of economic gains for Xizang, with growth anticipated in sectors such as engineering, transportation, and logistics. Investments in infrastructure are expected to create jobs and improve regional living standards in the region, while also strengthening water and electricity systems and boosting economic links with other provinces.

When complete it is believed the dam will produce up to three times more power than the world’s current largest hydro plant, the Three Gorges Dam.

Approval was granted after extensive geological and ecological studies highlighted by Chinese government media. Authorities have pledged to prioritise safety and environmental protection, with monitoring systems in place to limit impacts on local biodiversity.

Seen as a cornerstone of China’s energy strategy, the hydropower project now underscores the country’s commitment to balancing economic progress with environmental sustainability.

Chinese state media has in large part framed the Yarlung Tsangpo hydropower project as an initiative that prioritises ecological protection while advancing local prosperity and supporting Beijing’s climate neutrality objectives.

However, the development has drawn criticism from human rights groups and environmental experts, who have raised concerns about potential displacement of local communities and ecological disruption. The dam, first announced in late 2020, could significantly alter the region’s natural landscape, threatening ecosystems on the Tibetan Plateau, which are among the most biodiverse in the area.

The project is the latest in a series of dams constructed in Tibetan regions, a subject of contention in an area tightly controlled by Beijing since its annexation in the 1950s. Critics argue these large scale projects exemplify what they see as Beijing’s exploitation of Tibetan land and resources. The mainly Buddhist region has faced decades of crackdowns, with thousands believed to have died during periods of unrest and the region’s symbolic leader, the Dalai Lama living in exile in India.

Earlier this year, reports emerged of arrests and injuries during protests against the Gangtuo hydropower project, where residents opposed plans to displace villages and submerge ancient monasteries. While Beijing stated that affected residents were relocated and compensated, such claims remain disputed by activists.

For the Yarlung Tsangpo dam, authorities have asserted minimal environmental impact but have not disclosed how many people could be displaced. By comparison, the construction of the Three Gorges Dam required the resettlement of 1.4mn people.

The ambitious project would involve drilling multiple 20km-long tunnels through the Namcha Barwa mountain to redirect the Yarlung Tsangpo, Tibet’s longest river. This itself has raised concerns over potential control or diversion of the trans-boundary river’s flow, which will impact India’s Arunachal Pradesh and Assam states, as well as Bangladesh.

A report by the Lowy Institute has highlighted the strategic implications, suggesting China’s control over rivers in the Tibetan Plateau could provide leverage over downstream economies, including India.

Following the project’s announcement in 2020, an Indian official indicated that India might pursue its own hydropower initiatives to mitigate any adverse effects although no major projects of comparable size or importance have since been announced.

Chinese authorities meanwhile have defended the project as part of their renewable energy drive, noting that the river’s dramatic drop of 2,000 metres over 50km offers immense hydropower potential.

Yet, the site’s challenging topography, situated along a seismically active zone, presents significant risks that are yet to be fully addressed. Experts have warned that construction in the steep gorge could exacerbate landslides and mudslides, with earthquake-induced events posing additional hazards.

The estimated cost of the project could reach CNY1 trillion when done ($127bn), making it China’s largest and most complex hydropower undertaking to date.