Climate Ambition and JCM
Contribution in Chile
Felipe Díaz Bórquez
Climate Change Office – Ministry of theEnvironment
November 2021

Agenda

1. State Climate Policy
1. Climate Change Framework Law
2. Updated NDC 2020
3. LTS 2021

2. JCM and Article 6
3. Some remarks

State Climate Policy

Climate Change Framework Law
ExtremeUrgency
Mitigation goal for the country: Neutrality by 2050
Adaptation goals and indicators: Water (water security)
Long, medium and short term management instruments.
Command and control instruments

LTS to 2050
NDC: Intermediate goals
Emission and compensation
standardsIncorporation of Climate Change in other policies
Financing and economic instruments

Information systems
Institutionality of climate change (vertical and horizontal)
4

Climate Change Framework Law
PROJECT CONTENT.
TITLE III.
Reduce GHG emissions••

Greenhouse gas emission
standards.

Compliance flexibility

Emission reduction
certificates.

One more instrument to achieve
the sectoral goals to be definedin the LTCS (ECLP)

Mitigation projects Cost effective

Climate Change Framework Law

ARTICLE 13. ISSUANCE RULES.

GHG
SLPC*Control

Conflictresolution

Compliance

Establishment / Emissions source / Group* Short-Life Polluting Compounds

Sector goals
NDC
LTCS (ECLP)Climate Change Framework Law
ARTICLE 14. REDUCTION CERTIFICATES.
Certificates of reduction, absorption or surplus of greenhouse gasemissions.
Additional

Implementation of projects that
reduce GHG

Measurable
GHG
reduction

Verifiable
Permanent
Sustainable
Development Principle

Updated NDC (2020)
MITIGATION COMMITMENTS
ABSOLUTE EMISSIONS, excluding forestry sector
Variable

NDC 2015

Emissions Emission intensity(tCO2/GDP), 30%
reduction by 2030,
base 2007
Emissions.

New NDC 2020
Absolute emissions: Reach 95
MtCO2eq by 2030

Link withSDG

Carbon budgetperiod 2020 to 2030: 1.100
MtCO2eq
Peak emissions: 2025

More transparent and ambitious goal, in line with what the Paris Agreement asks of us.
Science has shown us that temperature increases are directly related to the accumulation of emissions, that is
why it is so relevant to establish a carbon budget as a goal.

Updated NDC (2020)
Mitigation Commitments

Updated NDC (2020)
Carbon Neutrality 2050

Note: An absorption of 57 MM tons per year from the forestry sector is considered, plus an increase in catch of 8 MM tons in 2050. The reduction percentages show the aggregate of
the period 2020 - 2050.

Updated NDC (2020)
Mitigation Commitments
THESE ARE THE MOST COST-EFFECTIVE MEASURESChile’s Long Term ClimateStrategy••••

Presented on November 3rd to theUNFCCC
It is the result of a participatory
process, build up with thecollaboration of public & private
sector institutions, scientificorganizations and civil society
Sets the path towards carbon
neutrality and resilience by 2050
https://unfccc.int/sites/default/files/
resource/CHL_LTS_2021.pdf

Setting the path towards carbon
neutrality and resilience•The LTCS contains more tan 400 transitions goals, basedon science•For the first time Chile defines sectoral limits to carbonemissions•To accomplish the goals, sectors must enact bothmitigation and adaptation plans, based on the fivebuilding blocks of the strategy

The five building blocks of the LTCS

1) Climate
governance4) NDC’Social Pilar

5) Sciencebased3) Nature
BasedSolutions

2) CosteffectivenessLong Term Strategy
OUR NDC IS A MID-GOAL TO THIS PATHPEAK

Coal phase out (13%)
Sustainable building (17%)
Electromovility (17%)
Sustainable industry (25%)
Hydrogen (21%)

CARBON BUDGET
2020-2030
1.100 MtCO2e

Energy efficiency (7%)

OUR NDC IS A MID-GOAL TO THIS PATHPEAK

Coal phase out (13%)
Sustainable building (17%)
Electromovility (17%)
Sustainable industry (25%)
Hydrogen (21%)

CARBON BUDGET
2020-2030
1.100 MtCO2e

Energy efficiency (7%)

Our NDC recognize therole of Article 6 of theParis Agreement

CARBON NEUTRALITY, ARTICLE 6 AND JCM: THE CHILEAN CASE

16

Sectoral carbon budgets• Climate Change Framework Bill: CN by 2050
• NDC: Forestry capture goals and national carbonbudgetAccumulated sectoral emissions
ECLP
2020-2030
MtCO2eq%

Transport Ministry

303,129%

Energy Ministry271,826%

Mining Ministry

174,116%

Agriculture Ministry

122,411%

Housing MInistry

95,39%

Health Ministry

51,15%

Public Works Ministry

43,34%TOTAL (NDC Goal)

1.100

-

Sectoral Authority

Preparation for the use ofArt. 6 Mechanisms

UPDATE NDC CHILE

NDC
2015

Chile does NOT rule out participating in international markets for GHG emissions
transactions, prioritizing compliance with its INDC commitments.
CHILE recognizes that Article 6 of the Paris Agreement is a mechanism
to:NewNDC
2020• Implement mitigation actions in a cost-effective manner.
• Advance the implementation of new technologies.
• Promote the participation of the private sector. (Key to increased ambition)
Formation of a public-private table todetermine a SPECIFIC POLICY FOR THE USE OF
MARKETS.

During2020/2021

Environmental integrity.

Public/private

To watch over

Avoid double counting.
Promote sustainable development.

CHILE: Considerations for Art. 6 PA•

Promotion instruments to go further and advance the implementation of actions.

•Ensure ENVIRONMENTAL INTEGRITY and avoid DOUBLE ACCOUNTING.

•Assurance of traceability of reductions (robust MRV)

•Focus on:•

Prioritize the best available techniques.

•Cost effective GHG emission reduction.

•Provide flexibility to reduce emissions at the source and / or through reduction
projects.

•

Promote projects and solutions based on nature.

•Move towards inclusive, sustainable and resilient development.

What is happening with JCM in Chile?

PROGRESS REPORT FOR All SELECTED JCM MODEL PROJECTSDATE : sep, 2021
Sheet NameProjectProject ParticipantsAnnouncementof selection

Contract offinancing

FY2016-01 Introduction of 1MW Rooftop Solar
Waseda EI Power System to University- Waseda Environmental Institute Co.,Ltd.
- MGM Innova Capital Chile SpAJan. 12, 2017

Mar.,15, 2017

FY2019-01
3.4MW Rice Husk Power Generation
Asian
Project in Maule
Gateway-Asian Gateway Corporation-La Gloria S.A.

Nov. 26, 2019Feb. 21, 2020

FY2019-02 3MW Solar Power Project in Chillan,
Farmland Nuble Region-FARMLAND Co., Ltd.
-Land and Sea SpA-Farmdo Energy Chile SpA

Jan.24, 2020Feb.26, 2020

FY2020-01 3MW Solar Power Project Utilizing
Farmland Farmland in Valparaiso Region-FARMLAND Co., Ltd.
-Land and sea SpA (Las Energy)-Farmdo Energy Chile SpA

Oct.5, 2020

Jan. 4, 2021

FY2020-02 34MW Solar Power Project in Nuble
RegionSharp-Sharp Energy Solutions Corporation

Feb. 1, 2021

mar. 29, 2021

Thank you