Hydropower is a renewable source of energy of which ecological benefits inc
lude very low average greenhouse gas emissions. As a result of dams, howeve
r, more than 20% of all freshwater fish species are now considered threaten
ed or endangered, Such negative ecological impacts are a focus of broad pub
lic concern in Alpine regions where hydropower production is most intense.
The liberalization of electricity markets now provides an economic rational
e for selling hydropower as green energy. This offers an opportunity to imp
rove the ecological performance of hydropower plants. The lessons learned f
rom this large-scale economic and ecological experiment in the industrializ
ed world might be important in other mountain regions where hydropower prod
uction is being developed or needs ecological upgrading As a step in this d
irection, the present paper gives an overview of recent developments in Eur
ope concerned with the ecolabeling of hydropower. Different initiatives for
green hydropower in liberalized electricity markets are discussed, followe
d by analysis of the shortcomings of simplistic ecolabels. Finally, a new m
ethod for ecological assessment of green hydropower plants is outlined. Thi
s is currently being implemented in Switzerland along with ecolabeling.