Green Bond
Framework

Republic of ChileRepublic of Chile Green Bond Framework

Table of Contents
Introduction 

3Background on Chile’s international commitments and environmental policies 

4

The Paris Climate Agreement 4Government Program 2018-2022 

4

Chile’s Government and Sustainable Finance 5Chile’s Green Bond Framework 

6

Use of Proceeds 

7Definition of Eligible Green Expenditures 

7

Green Sectors 

8

Exclusions 

11

Process for Project, Asset and Expenditure Evaluation and Selection 

11Management of Proceeds 

12Figure 1. Evaluation & Selection Process for Eligible Green Expenditures

12Reporting 

13

Allocation Reporting 

13

Impact Reporting 

13

Figure 2. Reporting Process

14

Examples of indicators and metrics:

15

External Review 

16Second-Party Opinion 

16

External certification 

16

External audit 

16Amendments to this Framework 

17

Legal Documentation

172

Republic of Chile Green Bond Framework

Introduction
Chile has a strong commitment with climate change mitigation andenvironmental protection. Reflecting this commitment, Chile isinterested in issuing Green Bonds as a tool to channel investments
towards green assets, contributing to further financial development
and promoting national financial innovation that supports the country’s sustainable development path, low in carbon emissions, withstrong climate resilience.
Chile recognizes the impending necessity to transition to a low carbon economy, which has also been highlighted by the Intergovernmental Panel on Climate Change’s (IPCC) “Special Report on Global
Warming of 1.5°C1 (October 2018), and considers Chile’s current
exposure to climate change related impacts as one of the country’s
main challenges.
Chile is already facing these challenges and as a part of its national
development plan, several ministries, including the Ministry of
Finance (MoF) have opened new specialized areas dedicated to faceclimate change, promoting public-private cooperation, including
climate change analysis in international negotiations and supporting
the Chilean strategy against climate change. The MoF is responsible
for fiscal policy and plays an active role in channeling public and private flows of capital to Chile’s Nationally Determined Contributions(NDCs) under the Paris Climate Agreement. In addition, Chile is taking
a leading global role on climate action. Chile’s Minister of Finance, Mr.
Felipe Larraín, currently co-chairs the Coalition of Finance Ministers
for Climate Action, and the country will host the United Nations Climate Change Conference of the Parties (COP25) in December 2019.
The MoF, in coordination with the Ministry of the Environment (MoE),
have developed a sovereign green bond framework (“Framework”),
which will allow Chile to fund eligible projects, assets and expenditures that will support the fulfillment of the country’s sustainable
development needs as well as international commitments including
its NDCs. At the same time, this framework underlines Chile’s commitment to the advancement of the Green Bond market.

»»1 https://www.ipcc.ch/sr15

3Republic of Chile Green Bond Framework

Background on Chile’s international
commitments and environmental policies
The Paris Climate Agreement
Chile ratified the Paris Climate Agreement in February 2017,by Supreme Decree No. 30 of the Ministry of Foreign Affairs. In
its NDCs presented to the UNFCCC in September 2015, Chileestablished commitments in five areas2: i) mitigation; ii) adaptation; iii) construction and capacity building; iv) technology
development and transfer; and v) financing.
In particular, Chile has committed to reduce its CO2 emissions
per unit of GDP by 30% by 2030, from 2007 levels.
According to the 2019 Global Climate Risk Index3, a measurethat quantifies the impact of extreme weather events basedon fatalities and economic losses, Chile is among the highest
as it is ranked 16th among 181 countries. Chile is highly vulnerable to the effects of climate change due to:i) its low-lying coastal areas;ii) its susceptibility to natural disasters; andiii) the presence arid, semi-arid and forest areas prone todrought, desertification and degradation.
In order to achieve its Long-Term Climate Strategy (LTCS),
Chile is promoting new and profitable ways to accelerate
emission reductions and encouraging the alignment of financial flows with a low-carbon, climate resilient economy. The
development of a local and international Green Bond market
to finance the country’s sustainable development needs isseen as a critical tool.

provide fundamental support for the advancement of key
productive sectors and social welfare. However, given the
country’s exposure to climate change related impacts, it is key
that infrastructure development prevents and mitigates thegeneration of greenhouse gases and takes into account future
variations in weather patterns in the different phases of the
projects’ life cycle.
The Government of Chile is proposing a paradigm shift in thelife cycle management of public works as part of its 20172022 National Action Plan for Climate Change. This is why,embedded within this national plan, in November 2017 theMinisterial Council for Sustainability approved the Climate
Change Mitigation and Adaptation Plan for Infrastructure
Services. This latest plan is the first of its kind in Latin America
and will help the government adjust the designs of planned
infrastructure to mitigate the worst impacts of climate change
at the community, regional and national level.
The Climate Change Law and the development of a Long-term
Climate Strategy (LTCS) commit to the development of a
National Climate Change Financing Strategy.
Considering the above, and in line with the country’s strategic
priorities set forth by the 2018- 2022 Government Program
and with its international commitments, this Framework isgeared towards financing the following priorities:♦♦Clean Transportation;♦♦Energy Efficiency;

Government Program 2018-2022♦♦Renewable Energy;

Worldwide, it is estimated that approximately US$ 6 trillion of
infrastructure investment will be needed annually until 2030.
About US$ 4 trillion of these investments will be accounted forby the global south. In Chile, it is expected that infrastructure
investments opportunities could amount to 3.5% of its GDP4.

♦♦Living natural resources, land use andmarine protected areas;

Infrastructure development opportunities in Chile are key
for the sustainable development of the country, as they♦♦Green Buildings.

»»2
»»3
»»4

♦♦Efficient and climate-resilient
management of water resources;

Chile is set to update its NDCs during 2019.
Global Climate Risk Index (2019), Who Suffers Most From Extreme Weather Events? David Eckstein, Marie-Lena Hutfils and Maik Winges
http://www.concesiones.cl/Documents/libro-Concesiones_obras-publicas-chile-20.pdf

4Republic of Chile Green Bond Framework

As the first sovereign green bond issuer in the Americas, Chile also
intends to set a benchmark for future sovereign issuances in the region.

Chile’s Government and Sustainable Finance
As mentioned in the previous section, since2014 a set of public policies supporting
Chile’s low carbon transition have been
put forth by the current and the previous
administrations. Such is the case, among
others, of the National Plan for Adaptation
to Climate Change (2014); Climate Change
Adaptation Plan for the Biodiversity Sector(MMA, 2014); Adaptation Plan for Climate
Change in the Health Sector (MMA, MINSAL,
2016); National Action Plan on Climate
Change (PANCC 2017-2022); Adaptation
to Climate Change for Cities (MMA, MINVU,
2018); National Energy Policy 2050 (2015);
Energy Sector Mitigation Plan (2017); andthe Electro Mobility Strategy (2017).

related risks, financial asset performanceand broad financial market stability. The
rapid increase in sustainable financepolicies and regulations offers concrete
proof of this global momentum.

in mind, Chile looks to further promote
the development of a green asset classthat can help attract foreign investment
to support the country’s sustainableinfrastructure needs.

In Chile, the MoF has taken a leadingrole by co-chairing the Coalition of
Finance Ministers for Climate Action.
Furthermore, following the launch of theGreen and Social Bonds market on theSantiago Exchange and the issuanceof the first green bonds in the country,
the issuance of a sovereign green bondwould further develop the market andencourage Chilean corporate issuers tofollow with green bonds of their own.

As the first sovereign green bond issuer inthe Americas, Chile also intends to set abenchmark for future sovereign issuances in the region. With this issuance,
Chile seeks to promote a wider regional
dialogue, to enhance the consistency anduniformity of future green bonds coming
out of the region and contribute to thedevelopment and acceptance of thisasset class by issuers and investors alike.

Recognizing that climate change andother environmental risks may affectthe appropriate functioning of markets,
financial regulators across the globe havebeen increasingly involved in assessing
the interrelation of climate change

A sovereign green bond provides astrong signal of the country’s commitment to promote sustainable financeand development of a low carbon,
climate-resilient economy. With thisAs the government looks to develop andimplement a National Climate Change
Financing Strategy, this Framework
sets out the main sectors for which aninaugural transaction and future green
bond issuances can be made.

5

Republic of Chile Green Bond Framework

Chile’s Green
Bond Framework
The purpose of this document is to describe Chile’s Green Bond
Framework, built on the country’s overall climate change strategy.
The Framework applies to current and future Chilean Green Bonds,
and may be updated by the MoF’s Public Debt Office as needed.
A Sovereign Green Bond Framework sets forth obligations that the
government, through its Public Debt Office, fulfills as a Green Bond issuer. Sovereign Green Bonds must be in compliance with obligations
already in place for bond issuances, as set out by the MoF according
to the State Financial Administration Law -D.L. N° 1.263, from 1975,
Article 3 from State Budget law N°21.125 as well as future Budget Laws
governing debt issuances.
The MoF is the body in charge of the implementation of the Green
Bond Framework.
Payments of principal and interest on the issuances completed under
this Framework are made by Treasury and are not conditional on theselection or performance of the eligible projects. Investors in bonds
issued under this Framework do not bear any project related risks.
Green Bonds issued under this Framework rank pari passu with eachother and with other Chile Government Bonds.
This Framework has been developed following the highest standardsof the Green Bond market and is aligned with the Green Bond Principles (2018 edition) published by the International Capital Markets
Association (ICMA). It therefore details the four core components ofthese principles:(i) Use of Proceeds;(ii) Project Evaluation and Selection Process;(iii) Management of Proceeds; and (iv) Reporting; plus, an approachto External Reviews.

A Sovereign Green Bond
Framework sets forth obligations
that the government, through its
Public Debt Office, fulfills as a
Green Bond issuer.

6Republic of Chile Green Bond Framework

Use of Proceeds
An amount equal to the net proceeds of any government issuance under this Framework will be allocated to finance new Eligible Green Expenditures (as defined below) and/or to refinance existing Eligible Green Expenditures.
Eligible Green Expenditures, falling under this Framework, are intended to:
1. Promote Chile’s transition to a low carbon, climate-resilient and environmentally sustainable economy or other objectives
set forth under Chile’s 2030 Agenda5 commitments and/or its Nationally Determined Contributions (NDCs)6 under theParis Climate Agreement;
2. Consider sustainability across the key dimensions as per the alignment with the Sustainable Infrastructure Framework of
the IDB: Economic and Financial, Environmental and Climate Resilience, Social and Institutional7;
3. Be funded, in whole or in part, directly or indirectly, through Treasury funded expenditures, subsidies or tax foregone asdetailed in Section 3.1.1 below.

Definition of Eligible Green Expenditures
Eligible Green Expenditures are expenditures within Chile’s central government budget that fall under the Green Sectors as
defined in the section 3.1.2 (Green Sectors); these are deployed to promote Chile’s transition to a low carbon, climate-resilientand environmentally sustainable economy.
Eligible Green Expenditures may include:♦♦Tax expenditures (subsidies and tax exemptions);♦♦Operational expenditures (funding for state agencies, local authorities and companies’ instrumental to deploying thecountry’s climate and environmental strategy);♦♦Investments in real assets (land, energy efficiency, infrastructure, etc.) and maintenance costs for public infrastructure;♦♦Intangible assets (research and innovation, human capital and organization).
♦♦Capital transfers to public or private entities.

»»5
Chile Agenda 2030 – Sustainable Development Goals http://www.chileagenda2030.gob.cl/»»6
Contribución Nacional Tentativa de Chile (NDC) para el Acuerdo Climático París 2015 http://portal.mma.gob.cl/wp-content/uploads/2016/05/2015-INDC-web.pdf»»7“What is Sustainable Infrastructure? A Framework to Guide Sustainability Across the Project Cycle”. IDB Group 2018 https://publications.iadb.
org/en/what-sustainable-infrastructure-framework-guide-sustainability-across-project-cycle

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Republic of Chile Green Bond Framework

Green Sectors
A list of Green sectors that may be relevant to the categorization of budget lines and that which may qualify as Eligible Green
Expenditures is presented below. Six sectors have been defined: Clean Transportation, Energy Efficiency, Renewable Energy,
Living Natural Resources, Land Use and Marine Protected Areas, Water Management and Green Buildings.

Green Sectors

Eligible Green Expenditures
Promote public transportation and support to multimodal transport solutions

Climate change
mitigation

Green Eligible Expenditures include:

Air quality
improvement♦♦Investment in public infrastructure and assets enhancing
modal shift, electric public passenger transport:◌◌electrified metro lines: new lines, extension and renovation
Clean
Transportation

Environmental
benefits◌◌electric buses, charging stations for electric vehicles◌◌other public transportation like tramways and trains

SDG’scontribuition

Greenhouse gas
reduction throughthe promotion of
low carbon mean oftransportation◌◌intermodal infrastructure to connect different clean public transportation, system monitoring and control, passenger safety andsecurity infrastructure and bicycle paths and parking♦♦Subsidies or incentives to promote public transportation

EnergyEfficiency

Support energy efficiency improvement in buildings and public
spacesClimate change
mitigation

Green Eligible Expenditures include:

Energy savings♦♦Energy efficiency investments in public buildings which result insavings higher than 20%: including (but not limited to) retrofit,
thermal insulation and/or upgrades of air conditioning system

Greenhouse gas
reduction♦♦Subsidies dedicated to energy efficiency improvements
in housing, including (but not limited to) improvement onhouses’ insulation♦♦Public lighting improvements (e.g., replacement with LEDs)

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Republic of Chile Green Bond Framework

Promote the development of renewable energy technologies
Green Eligible Expenditures include:♦♦Investments in projects from renewable non-fossil sources
such as:◌◌Wind energy8 (onshore)
Renewable
Energy◌◌Solar energy8 (onshore)◌◌Small run-of-river hydro plants (under 25MW)

Climate change
mitigation
Long term
Low Carbon
Infrastructure
Provision
Greenhouse gas
emission reduction♦♦Investments in solar / wind energy (onshore) projects that
integrate energy generation and storage (batteries)♦♦Training programs to increase technical knowledge in vocational education centers in renewable energies installation
Promote land, biodiversity preservation and marine protected
areas

Climate change
mitigation

Green Eligible Expenditures include:

Living Natural
Resources,
Land Useand Marine
Protected
Areas

»»8

Conservationand sustainable♦♦Forestry
use of terrestrial◌◌Programs for the conservation and restoration of native and ecosystems
exotic forest
Biodiversity◌◌Management and maintenance of National Parks andpreservation
Conservation Areasand protectionof terrestrial♦♦Marine protected areas protection and surveillance (includ- ecosystems
ing research)

Solar and wind facilities shall not have more than 15% of electricity generated from non-renewable sources (CBI certification requirements)

9Republic of Chile Green Bond Framework

Promote sustainable water management to ensure water supply
Green Eligible Expenditures include:

Water
Management

Climate change♦♦Water distribution: Installation or upgrade of water efficientirrigation systems, construction or upgrade of sustainable in- adaptation
frastructure for drinking water (including research or studies) Reduction of water
consumption♦♦Waste water management: Installation or upgrade of waste
water infrastructure including transport, treatment anddisposal systems♦♦Water resources conservation: including protection of water
catchment areas and prevention of pollution affecting watersupplies♦♦Flood defence systems against riverine inundations: including construction of reservoirs for the control of water flows

Green
Buildings

Water resources
conservation

Climate change
adaptation
and resilience,
considering
meteorologicalextreme events

Green Building construction and retrofits, with a minimum of 30%
carbon reduction in line with CBI standard

Climate change
mitigation

Green Eligible Expenditures include:

Energy savings♦♦Design and construction of public buildings certified under“Sistema Nacional de Certificación de Calidad Ambiental y
Eficiencia Energética para Edificios de Uso Público”

Greenhouseemission reduction♦♦Costs associated with retrofits to existing public buildings
to meet “Certificación Edificio Sustentable” or improve thecurrent certification level

Green sectors comply with the international Climate Bonds
Taxonomy9, and when feasible are also be in line with the relevant eligibility criteria under the Climate Bonds Standard (i.e.
when the criteria are available for the relevant expenditures).
Furthermore, where local, regional or domestic conventions,taxonomies and certifications exist to determine that an asset
is low- carbon and climate-resilient (e.g. Joint-MDB Climate
Finance Tracking; standards for buildings, etc.), these may also
be taken into account.
»»9International Climate Bonds Taxonomy

10Republic of Chile Green Bond Framework

Exclusions
Any project, asset or expenditure related to the following activities will be excluded from the Green Eligible Expenditures:♦♦Exploration and production of fossil fuels;♦♦Burning of fossil fuels as the unique source of power
generation or hybrid plants with a fossil related back up
higher than 15%;♦♦Construction of rail infrastructure dedicated for transportation of fossil fuels;♦♦Generation of Nuclear power;♦♦Electricity transmission infrastructure and electricity
systems where an average of 25% or more is fossil-fuel-generated;

The Green Bond Committee is comprised of representatives
from the main ministries in charge of the execution of the
public budget, including but not limited to Ministry of Environment, Ministry of Public Works, Ministry of Energy, Ministry ofTransport and Ministry of Agriculture among others.
The MoF with the support of the MoE will be responsible forthe following:♦♦Review and validate the selection of eligible green
projects, assets and expenditures as defined in Section
3.1 (Use of Proceeds);♦♦Monitor resource allocation to eligible green projects,
assets and expenditures;♦♦Manage any future updates of the Framework;♦♦Alcohol, weapons, tobacco, gaming, or palm oil industries;♦♦Coordinate the preparation of reports as described in
the Framework.

♦♦Production or trade in any product or activity deemed
illegal under national laws or regulations or international
conventions and agreements;

The MoF has the ultimate responsibility for determining thelist of eligible projects, while ministries will be responsible forproviding the requested documents and any further information to verify eligibility.

♦♦Deforestation, degradation of forest.

Process for Project, Asset andExpenditure Evaluation and
Selection
The MoF has established a decision-making process to determine the eligibility of the projects, assets and expenditures aspart of its Green Bond Framework, which includes:♦♦A statement on the environmental objectives of thebond;♦♦A process to determine the project, assets and expenditure eligibility;♦♦The related eligibility criteria, exclusion criteria or any
other process used to identify and manage environmental and/or social risks associated with the projects.
As part of the process to determine project, asset and expenditure eligibility (Figure 1.) The MoF, with the support from
the MoE, leads an inter-departmental committee, named“Green Bond Committee”, with the aim of overseeing the full
implementation of this Framework, including the allocationof funds raised to eligible projects and the provision of theinvestor reports referred to Section 3.4 (Reporting).

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Republic of Chile Green Bond Framework

Management ofProceeds
This Framework is a general approach
applicable to one or more future issuances. Each specific green bond issuance under this framework will be linked
to a specific pool of eligible projects.
The management of Eligible Green Expenditures will be done on a notional basis.
The tracking of the Eligible Green Expenditures is done by the MoF, ensuringthat an amount at least equal to the net
proceeds from the completed issuances
under this Framework will be allocatedto the financing and/or refinancing ofexpenditures that meet the eligibility
criteria (3.1.2).
If one or more projects initially includedin the pool no longer comply with theaforementioned eligibility criteria due
to changes in their nature or in theirimplementation, their specific amountwill not be accounted in the financing/refinancing expenditures related to thespecific bond. It’s anticipated that the
total value of eligible projects, assets
and expenditures related to a specificbond will be higher than the amount ofissuance, in order to avoid the necessity to include new projects in eventof projects no longer eligible, delays in
execution and/or projects’ eventual
cancellations.
In the context of this framework, Green
Eligible Expenditures will include Recent
Expenditures (i.e., all expenditures
made in the previous year) and Current
Expenditures (i.e., all expenditures
to be made in the current year), and,if necessary because the two latter
categories have been exhausted, it may
also include Future Expenditures (i.e., allexpenditures to be made in the coming
years). For each bond and previous to
the issuance, Chile will disclose a Reportcontaining, at least, the estimatedpercentage of Recent Expenditures tobe financed through the bond and theestimated period after the issuancein which most of the expenses will be
disbursed. This Report will be publishedin the Ministry’s website.
The net proceeds from the contemplated issuances will be transferred to thegeneral account of Chile (the “General
Account”). Pending the full allocation of
the proceeds of the issued Green Bond
to Eligible Green Expenditures, the MoF
will manage the proceeds according
to the article 12 of Law Nr. 20,128 (“OnFiscal Responsibility”), which establishes that the investment of the resources
will be disposed by the MoF, according
to the regulation contained in the article
3 of the Decree-Law Nr. 1,05610.
The MoF also ensures that the nominal
allocation of proceeds does not allow forlisting of the same eligible green project
twice.

Figure 1. Evaluation & Selection Process for Eligible Green Expenditures11
Ministerof Finance
DIPRES

MoF requests Green Project, Asset and Expenditure
information from DIPRES (Budget Office) and Ministries

Ministries
MoF & MoE analyze and select Green Project,
Asset and Expenditure

MoF & MoE
Ministerof FinanceSelection
Allocation

MoF issues Green Bond against selected Green Bond
Project, Asset and Expenditure portfolio

Treasury
MoF, through the Treasury, transfers
resources to the General AccountGeneral
Account
Ministry A

Ministry B

Ministry C

Project 1

Project 2

Project 3

Resources are nominally allocated to the different eligible
green projects, by an amount equal to the issued amount»»10 The resources maintained in the Other Treasury Assets (Otros Activos del Tesoro Público, in Spanish) could be invested in securities issued by
the Central Bank of Chile, repos, bank deposits, short-term, sovereign bonds and others.
»»11 Dipres is the Budget Office (Dirección de Presupuestos, in Spanish).

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Republic of Chile Green Bond Framework

Reporting
The Ministry of Finance will provide investors with an allocation report and an impact report (Figure 2.) as
per the frequency defined below, covering all of the bonds that have been issued under this Framework.
The MoF is responsible for consolidating the allocation reports and the impact reports. This information will
be published on the MoF website in April of each year in the following link [https://www.hacienda.cl/english/
public-debt-office/green-bonds.html]. The information published will be subject to availability of generalfiscal accounts. The first report will be published in the following year after the issuance.

Allocation Reporting

Impact Reporting

Until full allocation of proceeds, the
MoF through the Treasury and theBudget Office (DIPRES) will provide
information on the allocation of the
net proceeds of its Green Bond(s)that should include:

As long as the green bond is outstanding and where feasible, anannual impact report will be provided. The MoE will be in chargeof liaising with the appropriate
ministries to integrate all impact
indicators into an impact reportthat will be considered by the
MoF for reporting to investors.
The impact report may include,
where information is available:♦♦a brief description of the
projects and the amounts
disbursed;♦♦percentage of proceeds
allocated per Green projector program;♦♦percentage of proceeds
allocated for financing andrefinancing;♦♦the remaining balance of
unallocated proceeds;♦♦percentage of co-financing per Green project orprogram.
Where confidentiality agreements or competition considerations limit the amount ofdetail that can be disclosed, theinformation may be presented ingeneric terms.

♦♦The expected impact of the
projects and assets;♦♦Qualitative performanceindicators and, where
feasible, quantitative performance measures of the
impact of the projects;♦♦The methodology and underlying assumptions used
to prepare performanceindicators and metrics shallbe disclosed.

13Republic of Chile Green Bond Framework

Figure 2. Reporting Process
Project 1

Project 2

Project n

Ministry A

Ministry B

Ministry n

Allocation Report
information

Ministries collect information related to Green Projects:
amounts allocated and impact on environment. That
information is necessary to produce the allocation andimpact report

Impact Report
information

Ministry of
Finance

Ministry ofEnvironment

Allocation Report

Impact Report

External Audit

Ministry of Finance(Final Report)

MoF & MoE consolidate information from Green Bond
projects, assets and expenditures into an Allocation andImpact report

External Auditor reviews the Allocation Report

MoF produces and publishes final report to investors

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Republic of Chile Green Bond Framework

Examples of indicators and metrics:
Green Sectors

Example of Output
Number of km of new electric train lines
created / maintained

Clean Transportation

Number of km of new electric bus lines
created / maintained
Number of people using the new publicclean transportation means
Number of private households/buildings
benefited with energy efficiencies

Energy Efficiency

Number of public households/buildings
benefited with energy efficiencies
Number of public lightings benefited
with energy efficiency

Example of Impact KPIs12»» Annual GHG emissions reduced/
avoided (tCO2e)»» Tons of particles avoided PM 2.

»» % of annual energy saving»» kWh of annual energy saving»» Annual GHG emissions reduced/
avoided (tCO2e)

Installed Capacity (MW)

Renewable Energy

Annual renewable energy generation (MWh)Number of people benefited fromtraining programs»» Annual GHG emissions reduced/
avoided (tCO2e)Area of land or ocean conserved /recovered (km2)

Living Natural Resources,
Land Use and Marine
Protected Areas

Area (km2) of marine/forestry reserve
under active monitoring
Number of climate observation stations
installed (for gradual and extreme changes)»» Protected areas and Reserves:
Captured CO2 (per year)

Number of farmers implementing
sustainable agriculture practice
Number of efficient pumps installed
Km of new sewage pipes installed
Number of new reservoirs/flood
defences built

Water Management

Number of studies (research)»» Reduction in water use in %Annual absolute (gross) amount ofwastewater treated, reused or avoided
before and after the project (m3/a)
Annual volume of clean drinking water in
m3/a supplied for human consumption»» % of annual energy saving

Green Buildings»»12

Key Performance Indicators

Number of Buildings with Green»» Annual GHG emissions reduced/
Certification, indicating the specific level
avoidedof certification obtained»» (tCO2e)

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Republic of Chile Green Bond Framework

External Review
Second-Party Opinion
Chile has engaged Vigeo Eiris to provide an independent Second Party Opinion on this Green Bond
Framework prior to the first issuance of a bond under
the Framework. Second Party Opinion documents areavailable at the MoF’s website.

External certification
Chile reserves the right to request the certification of
its Green Bonds under the International Climate Bonds
Standard. This request will be analyzed on a case-bycase basis.

External audit
The MoF will also engage an independent external auditor
to provide third party assurance on the allocation reportand its conformity with this Framework. This process will
be made on an annual basis until full allocation.

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Amendments tothis Framework
The MoF reserves the right to modify this framework
according to international best practices or in accordance
to Chile’s international commitments.

Legal Documentation
According to the Supreme Decree N° 195 of 2019, which authorized the external issuance for 2019, the MoF is authorized to issue and/or sign the proper documentation needed
for the Green Bond issuance, included in this Framework:“En uso de esta facultad, cualquiera de los personerosantes mencionados (Ministro de Hacienda y el Cónsul

General de Chile en Nueva York) (...) podrán establecery/o suscribir la documentación requerida en procesos decertificación internacional, que respalde la intención derealizar gastos en proyectos vinculados con la adaptación
al cambio climático y la protección del medio ambiente,
entre otros, por un monto equivalente a la emisión de losbonos que se autorizan bajo este decreto.”