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.