Presentació de Francisco Javier Pinto Pardo. Economista del Ministeri de Medi Ambient de Xile, en el marc del Side Event “Practical approach to climate finance" organitzat per l'Oficina Catalana del Canvi Climàtic i ACCIÓ de la Generalitat de Catalunya durant la Carbon Expo 2015

1. Climate Finance in Chile
Carbon Expo 2015
Francisco Pinto
Ministry of the Environment of Chile
May, 2015

2. Gobierno de Chile | Ministerio del Medio Ambiente
Outline
• Context
• GHG mitigation policies and actions
• Needs and suport received
• Climate Expenditure
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3. Gobierno de Chile | Ministerio del Medio Ambiente
Context I
• Some figures:
– Population: 17,556,815
– GDP (ppp) per cápita (2013): US$21,942
– Gini (2013): 0,50 (OECD average: 0,31)
• Chile is not a major contributor of GHG
emissions. In 2010:
– total emissions: 91,575.9 GgCO2 eq (0,25%
total).
– Per capita emissions: 5.3 t CO2 eq per year
• Increasing GHG emissions: 83.5% (1990-2010)
• Main drivers Energy and Agriculture sectors
(90% total national emissions)
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• 75% GHG total
• Drivers:
• coal and diesel consumption for
electricity generation (40%)
• Liquid fuel (31%)
• 15% GHG total
• Drivers:
• Use of synthetic nitrogen-based
fertilizers
• 10% total employment

4. Gobierno de Chile | Ministerio del Medio Ambiente
Context II
• Chile is a highly vulnerable country for
climate change (IPCC, 2001).
• The economic losses are estimated to
be around 1,1% of annual GDP (2010-
2100).
• Negative impacts on:
– Mining
– Agriculture
– Drinking water
– Hydropower
– Health
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5. Gobierno de Chile | Ministerio del Medio Ambiente
Context III
• Institutional framework:
– Ministry of the Environment (2010)
• Climate Change Department (CCD)
– Ministry of Energy (2010)
– Ministers Council for Sustainability and Climate Change (2014)
• National Climate Change Action Plan, 2008-2012 (PANCC)
• Today working on PANCC 2016-2021
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6. Gobierno de Chile | Ministerio del Medio Ambiente
GHG Mitigation I
• In 2009 Chile voluntarily announced its willingness to join a global
effort to mitigate greenhouse gas emissions.
– Reducing, by 2020, 20% of projected emissions from 2007 (BAU scenario)
through nationally appropriate mitigation actions.
1. Policies and actions
– Energy efficiency
– Renewable energy
• Today 33% (Expected: 45% by 2025)
2. Nine Nationally Appropriate Mitigation Actions (NAMAs)
– Five registered with the UNFCCC NAMA Registry, for example:
• Clean Production Agreements
• National Forestry and Climate Change Strategy
3. Measurement, reporting and verification (MRV) of mitigation
actions
– Fostering transparency in GHG mitigation actions implemented in the
country.
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7. Gobierno de Chile | Ministerio del Medio Ambiente
GHG Mitigation II
4. Market-based instruments for environmental externalities (PMR
support)
– Green Taxes:
• In September 2014, Chile passed a green tax law.
• Three new taxes were introduced:
– Tax on CO2 emissions from stationary sources with boilers and turbines
– tax on local contaminants also on stationary sources with boilers and turbines
(PM, SO2 and NOX).
– tax on the first sale of new cars considering the expected NOx emissions over
their lifetime.
– These taxes will be implemented in 2017, and require detailed regulation which
will be developed during 2015 and implemented in 2016.
– Exploring potential emissions trading systems (ETS)
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8. Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received I
• Chile’s institutional structure and capacities have advanced
substantially in recent years. Nonetheless, there are needs, gaps
and barriers that hinder the development of climate actions.
• Barriers:
– Inability to receive direct international funding (Budget law)
– Difficult fund allocation to climate change-related matters (not identified by
laws)
• Needs
– Reporting: to establish permanent and binding reporting systems for the
country’s National Communications.
– Mitigation: Development of information management systems in all sectors.
– National GHG Inventory: To integrate IT system for housing data and
supporting the work of SNICHILE.
– PANCC (2016-2021): Adaptation and mitigation
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9. Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received II
• Support received:
– As a developing country, Chile is always seeking for international support.
• Between 2011 and 2014: US$ 8,054,941.
– Not including contributions approved but not yet available
(US$39,083,420)
• 50%: Donation from a group of countries and organizations
working collectively on a specific initiative
• 40%: Bilateral-country-specific donations
• 10%: International finance agencies
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10. Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received III
• Government projects and programs that have received the bulk
of funding
• Mitigation Action Plans and Scenarios (MAPS)
• Low Emission Capacity Building (LECB)
• Climate Change projects sponsored by GEF
• The Forest Carbon Partnership Facility
• Partnership Market Readiness (PMR)
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• PNUD (Germany, Australia and
European Comission
• Defining and
operationalizing a National
Inventory System
• Conceptualizing MRV system
for NAMAs
• Children Investment Fund Foundation
(CIFF)
• La Alianza Clima y Desarrollo (CDKN)
• Switzerland
• Denmark
• Chile
• Business as Usual (BAU) and
Required by Science (RBS) scenarios.
• Mitigation options and scenarios
• Policy briefing
• The World Bank (Australia, Denmark,
European Comission, Finland, Germany,
Japan, Netherlands, Norway, Spain,
Sweden, Switzerland, United Kingdom,
United State)
• Regulatory, Economic and
Institutional Analyses needed to
asses the viability of a carbon pricing
instrument for the energy sector.
• Design and implementation of MRV
framework and Registry system.
• Communication strategy and
stakeholder engagement.

11. Gobierno de Chile | Ministerio del Medio Ambiente
Climate Expenditure
• Climate Public Expenditure and Institutional Review (CPEIR)
– Supported by LECB
• The CPEIR examines the linkages between the three spheres of:
national climate change policy; the institutional structures through
which policy is channelled; and the resource allocation processes
whereby public funding is made available for the implementation of
relevant projects, programmes and policies.
• Chile
– Public Sector (2015)
• 2010-2014
• Sector: Energy and Agriculture
– Private Sector (2016)
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12. Thanks
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