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Global Carbon Market

Chile

In its NDC under the Paris Agreement, Chile has committed to reducing its greenhouse gas emissions by 30% by 2030, compared to 2007. On the condition that it receives international support, the country is willing to reduce its emissions by between 35% and 45%. Chile is working to achieve these mitigation objectives within the scope of its national climate policies, including the climate change action plan and the action plan for energy efficiency.

As part of comprehensive tax reforms, Chile has introduced a carbon tax. It is also considering the introduction of a national emissions trading scheme. Recently, Chile initiated work on a Climate Change Law. Under the leadership of the new Head of the Climate Change Division at the Ministry of the Environment, a proposal is to be developed by early 2019. The Global Carbon Market project team is accompanying the design process of the new Climate Change Law.

Chile’s national climate policies are the basis for all project activities conducted there. The most important cooperation partner is the Chilean Energy Ministry, which plays the lead role with regard to carbon market instruments. Other important partners include the Environment Ministry, the Ministry of Finance and the Interministerial Committee on Climate Change. The project partners receive support in the form of studies, dialogue forums, conferences and trainings, thereby assisting the development of carbon market instruments. As part of the project, in-depth technology needs assessments are conducted for specific industry sectors with high carbon pricing sensitivity, the aim being to design possible support instruments to facilitate the clean technology transfer process.

The project also provides training for government institutions and private and financial sector agents with respect to climate finance opportunities. It also provides support in the creation of a mandatory reporting platform based on German experience. Last but not least, the project also supports the Carbon Pricing in the Americas initiative.

Recent developments

August 2018 Is Latin America ready for Article 6?