🌱 Chile's Ministry of the Environment unveils its initiative for emissions compensation

Image Source: La Tercera

Chile's Ministry of the Environment, led by its Minister Maisa Rojas, has unveiled the Emissions Trading System for the Green Tax (ETS). This initiative is set to reshape the carbon market landscape in Chile and beyond.

🔹 What is ETS?

The ETS allows taxpayers to offset emissions from fixed sources taxed under the Green Tax. This is achieved by acquiring certificates from national emission reduction or absorption projects, also known as carbon credits. These certificates are then sold to emission sources, who can request emission compensation from the Superintendencia del Medio Ambiente.

🔹 How Does It Work?

In its initial phase, the ETS will allow for the compensation of emissions generated in 2023 during the 2024 tax year. Two main pillars underpin the ETS:

• Homologation of credits from international standards for projects developed in Chile.

• Creating a National Certification Program (PNC) for local pollutants such as CO2, NOx, SO2, MP, and global emissions.

🔹 Future Prospects:

The ministry also advocates for landfill methane capture, public and private transport electrification, heater replacement projects, and thermal insulation.

🔹 Why It Matters:

Chile's proactive approach is not just about reducing emissions. It's about mobilizing resources towards carbon neutrality and improving air quality. As the Minister of Energy, Diego Pardow, rightly pointed out, this new system is one of the ways to accelerate the implementation of the Climate Change Framework Law by promoting investment in new technologies.

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