Chile

"Chile recognizes that Article 6 of the Paris Agreement is a mechanism for countries to implement mitigation actions in a cost-effective manner and to advance in the implementation of new technologies in collaboration with other Parties, through Internationally Transferred Mitigation Outcomes (ITMOs), for ex - ample. It is also the only article that facilitates and/or promotes private sector participation, which is key to increase ambition. Therefore, at the national level, in 2020 we will establish a public-private dialogue roundtable to define specific policy for the use of markets, taking into account clear guidelines that preserve environmental integrity, avoid double-counting and promote sus - tainable development."

[machine translated, p. 66 of NDC] "Internationally, Chile has made significant progress in implementing Article 6 of the Paris Agreement, highlighting its active participation through the signing of Bilateral Implementation Agreements with Switzerland and Singapore. This is in addition to the development of regulations governing the carbon market mechanisms of Article 6 of the Paris Agreement, voluntary cooperation approaches (6.2), and the Paris Agreement accreditation mechanism (6.4), approved on August 29, 2024, by the Council of Ministers for Sustainability and Climate Change. These regulatory frameworks provide guidelines to promote the development of mitigation initiatives aligned with the country's climate commitments, establishing clear guidelines for the classification of activities according to their end use: national or international demand. The use of these instruments is part of the national strategy, as one of the sources of financing to promote the development of more cost-effective mitigation measures and channel them primarily to the national carbon market, allowing the country to meet its NDC commitments without the international transfer of these mitigation results. On the other hand, with the aim of increasing ambition and complementing the country's commitments, those measures that are less cost-effective and represent high barriers to entry or emissions mitigation that goes beyond current commitments may be considered for authorization and generate Internationally Transferable Mitigation Outcomes (ITMOs). Therefore, to guarantee environmental integrity and avoid the overselling of ITMOs, an updated list of eligible activities will be developed and maintained under Article 6, considering sectoral mitigation plans, the Long-Term Climate Strategy, and other climate change management instruments. This categorization seeks to ensure that the international transfer of mitigation results does not compromise compliance with Chile's NDC and is carried out under criteria of additionality and traceability, incorporating the corresponding adjustments to national emissions. The role of carbon markets—both national and international—is fundamental not only to meeting Chile's climate goals, but also to enabling access to international climate finance, facilitating the implementation" of projects with high investment costs and promoting technological innovation. In this context, the strategic use of Article 6 will mobilize resources to accelerate climate action while strengthening the transparency and environmental integrity of the commitments made. Based on the above, Chile will work to establish institutional, technical, and operational capacities to enable the proper functioning of the procedures and infrastructure for the use of the mechanisms of Article 6 of the Paris Agreement and the national carbon market, reaffirming its commitment to an environmentally sound, transparent, and consistent market architecture with the country's climate roadmap.