Achievement of sustainable development in both economic and environment performance involves engaging a clear cut climate actions which can be emulated by other countries in forming their climate goal policies. On this note, this study seeks to examine the environmental implication of hydropower energy policy on environment sustainable development and management of the 10 largest hydroelectric energy generating countries. By extension, the study examines the possibility of achieving hitch-free energy transition through hydropower energy sources. A study of the 10 largest hydroelectric energy producing countries is vital in framing policy based solution to environmental problems, and advice on easy way to achieve climate goal. Following the nature of this study and to derive home the objectives of the study, methods such as slope homogeneity and cross-sectional dependence (CSD) tests were applied, followed by the unit root and cointegration tests with the causality and long-run relationship. Findings from the long run relationship between the dependent variable and the independent variables are: The findings show that the N-shaped environmental Kuznets cure (EKC) hypothesis is confirmed. Also, the level of hydroelectric power generation increases in these countries, carbon dioxide (CO2) emissions level decreases. Again, as the level of financial development increases, CO2 level also increases. However, according to the results from causality tests, there is a one-way causal link from hydroelectric power generation to carbon emissions, and from financial development to carbon emissions. Further, a two-way causal relationship was found between economic growth and CO2. The policy makers will pay strict attention to this development and regulate the influence of financial development to balance the sustainable development between economic growth and environment.
