Abstract: From the perspective of the evolution of the policy framework for the development of small hydropower, the emphasis of the contribution of small hydropower varies in different periods. From the economic, social, emission reduction effect and other aspects of the evaluation of small hydropower, it can be seen that although there are many controversies in the development of small hydropower, there is still a large space for its development, and more and more attention and support has been paid by governments of the international community. Small hydropower should be rationally recognized, treated scientifically and guided correctly. Under the goal of carbon neutrality, it can directly or indirectly increase the supply of renewable energy, reduce carbon emissions through its own development and integration with wind power and optoelectronics, and it is also conducive to improving the stability of energy and power system and accelerate the construction of a new energy-based power system. Based on this, it is suggested that China should promote the construction of a new pattern of small hydropower from five aspects: (1) Change the wrong impression and correct the deviation, encourage the development of small hydropower, and take the lead in building carbon neutral demonstration areas in areas with good basic conditions for the development of small hydropower; (2) Break down the institutional barriers and promote the construction of China's new power system with the high-quality development of small hydropower; (3) Improve the market mechanism, reduce the difficulty of financing, and promote the healthy and sound development of small hydropower; (4) Accelerate technological innovation, breakthrough and integration, support and play the role of direct or indirect energy transition and emission reduction of small hydropower better; (5) Actively explore the contribution path of small hydropower in China under the vision of carbon neutrality, and promote global climate governance.