Since the extremely dry and hot summer of 2003, the question of what effects ongoing climate change will have on hydropower in Switzerland—mainly on the amount of electricity that will be produced, but also on the safety of hydropower plants—has often arisen. Even though predictions of the potential impacts of climate change on hydropower generation are characterized by uncertainty, it can be assumed that within the next 25 to 30 years no significant adaptation of the infrastructure for hydropower generation will be urgently needed in Switzerland. Therefore, there are no major institutional challenges to be faced in this context. On the other hand, extending hydropower generation units to further reduce the emission of greenhouse gases will constitute a challenge to existing institutional arrangements, in Switzerland and elsewhere. In the case of Switzerland, interest in protecting waterways and landscapes will conflict with future efforts to mitigate climate change. Current legislation is based on sectoral considerations and not on a holistic vision of sustainable development. Thus this framework has some shortcomings in terms of constructive negotiation of processes leading towards long-term sustainable development.