4. Mitigation measures, actions and policies

a. GHG Mitigation measures

In this opportunity, two groups of public institutions that report their mitigation policies and actions have been defined:

1. Sectorial mitigation ministries that must comply with defined emissions budgets and mitigation efforts, according to the LMCC and the ECLP (Ministry of Energy, Ministry of Transport and Communications, Ministry of Mining, Ministry of Health, Ministry of Agriculture, Ministry of Public Works, Ministry of Housing and Urban Planning);

Public institutions that, although they do not have compliance obligations in terms of emission budgets or mitigation efforts, the work they carry out is relevant for the achievement of mitigation goals at the country level, which is why they have been invited to report their progress in the implementation of measures (Office of Legislative Implementation and Circular Economy and the Ozone Department of the Climate Change Division, both of the Ministry of the Environment; Production Development Corporation; Ministry of Social Development and Family; Ministry of National Assets; Undersecretariat of Regional and Administrative Development of the Ministry of the Interior and Public Security; Chilean Navy).The set of mitigation measures implemented by the public sector has an impact on GHG emissions, where a large part of the mitigation efforts is expected to come from the ministries or sectorial authorities. This would represent the largest GHG emissions in the country and correspond to the ministries of Energy, Transportation and Communications, Mining, Health, Agriculture, Public Works and Housing and Urban Planning.

The Ministry of Energy has the largest participation in the design and implementation of mitigation measures to achieve carbon neutrality in the country. The integration and articulation of these measures is carried out through the establishment of long-term public policy instruments led by the Ministry of Energy, such as the National Energy Policy and the regulatory mechanisms of Long-Term Energy Planning (PELP).

In parallel to the updating of the National Energy Policy to 2050 and the construction of the Energy Agenda 2022-2026, the Ministry of Energy has carried out other processes that complement the Policy and pursue the same sustainability objectives, such as planning for carbon neutrality; the Fair and Sustainable Transition Strategy in the energy sector, which seeks to make the energy transition compatible with the social, labor and environmental spheres associated with it and which will initially address the challenge of retiring coal-fired plants, but will later serve as a basis for other necessary transformations in the sector; the Renewable Energy Strategy in the Heating and Cooling sector; the National Green Hydrogen Strategy; the National Energy Efficiency Plan; the National Electro-mobility Strategy; the Strategy of Economic Instruments for the Energy Transition, among others.

• Ministry of Transportation and Communications

Based on the sectorial vision of sustainable mobility, expressed in the National Strategy for Sustainable Mobility, different actions have been activated to improve the institutional organization in environmental aspects, highlighting the reconfiguration of the Environment and Climate Change Committee. The purpose of the strategy is to incorporate environmental objectives in the various areas of action of the Ministry of Transportation and Communications in order to advance in the goals established in the Long-Term Climate Strategy and in the National Strategy for Sustainable Mobility and to support the future construction of the National Program for Sustainable Urban Mobility and the Sectorial Plan for Mitigation of the Transportation Sector.

In addition, inter-institutional coordination has been strengthened in various aspects such as: promoting the preparation of Metropolitan Urban Transportation Master Plans in future metropolitan areas, strengthening Public Transportation Planning instruments (PMITP), advancing in coordination with the Ministry of Housing and Urban Planning in the generation of urban integration mechanisms (social integration polygons), incorporating the notion of sustainable mobility in Strategic Environmental Assessment, as well as promoting integrated urban planning and the generation of balanced density patterns. Efforts have also been made to include sustainable mobility criteria in land use planning and rural development.

• Ministry of Mining

To reduce this consumption and reduce GHG emissions in the mining sector, certain initiatives such as the incorporation of renewable energies have been encouraged. Chilean mining is making significant progress in the use of Non-Conventional Renewable Energies (NCRE). Already in 2021, 44% of mining electricity consumption is from clean sources and in 2025 it is expected that 62% of the industry ‘s electricity demand will come from this type of energy.

The National Mining Policy 2050 (PNM 2050) is a reference point for the industry and the State. This policy sets goals for the industry and the State, in the short (2025), medium (2030) and long-term (2050) to meet the objective of developing a sustainable mining industry that provides the minerals that the world will require to face the climate crisis, promotes employment, investment and progress in the regions.

The PNM 2050 is based on the pillars of economic, social, and environmental sustainability; however, this policy must be adapted to new scenarios and challenges. To this end, we are working on its revision, especially with the inclusion of weakly considered actors and due coherence with the Government Program.

State-owned companies have also made progress in mitigating their GHG emissions. The National Copper Corporation (CODELCO) launched its Sustainability Policy and the National Mining Company (ENAMI), on the other hand, is making progress in training its professionals in energy management and is also in the process of reviewing electricity supply contracts to supply its operations with renewable sources. The Mining Council is a trade association that brings together the largest mining companies that produce in Chile, and as part of this council, the associated large mining companies have set corporate-level goals for reducing emissions.

• Ministry of Health

In 2020, total emissions allocated to this ministry reached 6.3 MtCO2e, increasing by 13.6% compared to 2018 and representing 6.0% of national emissions excluding the LULUCF sector. The increase in emissions is mainly due to emissions generated by waste disposal, in line with the increase in the country’s population. With respect to emissions by 2020, 92% are the result of the disposal of municipal and industrial solid waste.

Thus, among the mitigation measures identified by the sector, it should be noted that in waste management matters, the Ministry of Health is responsible for establishing and monitoring the sanitary conditions to be met by waste disposal facilities, including greenhouse gas emissions associated with this activity, as well as improving the practices used in the management of waste from health care facilities, as is the case of the rationalization of interregional transportation of waste for treatment, which will result in the reduction of CO2 emissions.

• Ministry of Agriculture

Although mitigation measures in the sector have historically focused on the forestry component, since the publication of the ECLP and the LMCC, the agricultural component has acquired greater relevance as the object of mitigation instruments and actions. Regarding specific instruments, in 2021 the Ministry of Agriculture presented the Agri-food Sustainability Strategy, a sectorial policy whose vision is to position the national agri-food sector as a supplier of food produced in a sustainable manner for Chile and the world, committed to people, communities, the environment and the development of local economies. Additionally, the PLACA initiative (Platform for Climate Action for Agriculture in Latin America and the Caribbean) launched in 2019 and supported by the Ministry of Agriculture is being implemented. This platform is a regional mechanism for collaboration between Latin American and Caribbean countries on agriculture and climate change, aimed at productive agricultural development, adapted to the effects of climate change, resilient and low in GHG emissions.

With respect to the relevant instruments and policies related to the forestry component, one of the instruments developed to meet the goal contained in the NDC is the National REDD+ Strategy (Reducing Emissions from Deforestation and Forest Degradation - REDD), which in the case of Chile is called the National Strategy for Climate Change and Vegetation Resources (ENCCRV), which is led by CONAF as the focal point.

• Ministry of Public Works

In 2020, the total emissions allocated to this ministry reached 4.5 MtCO2e, decreasing by 4.0% compared to 2018 and representing 4.2% of national emissions excluding the LULUCF sector. The main cause for the decrease in emissions allocated to the Ministry of Public Works is the decrease in emissions produced by sludge generation in most of the country. However, cement production and electricity demand offset the decrease with their respective increases. Regarding the participation of the categories in 2020, 37% corresponds to domestic and industrial water treatment, 25% corresponds to emissions gene- rated by electricity demand for public use and water treatment, and 20% corresponds to emissions from cement production.

• Ministry of Housing and Urban Planning

In the area of climate change, this ministry works in a comprehensive and coordinated manner with other entities in the territories, at various scales such as housing, neighborhoods, and cities. The National Urban Development Policy (PNDU) states that it is key to move towards sustainable urban development, which considers both the sustainable construction of the city and the efficient management of energy and the management of natural resources and waste, which will lead to a reduction in the generation of GHG emissions. Within the framework of the Circular Economy, the Ministry of Housing and Urban Planning is developing a series of actions to collaborate in GHG mitigation. Additionally, at the national level, the National Urban Parks Policy was developed to protect and strengthen the vital role that urban parks play in the sustainability and resilience of our cities, in the wellbeing and quality of life of their inhabitants, and in the future development of the country.

In the construction sector, two instances are mentioned at the national level, the first is the updating of the National Sustainable Construction Strategy (ENCS) and the second is the completion of the development of the National Strategy for Carbon Footprint in Construction. In the area of neighborhoods, the aim is to reduce greenhouse gas emissions associated with urban planning, by means of two plans that are incorporated into each master plan that the program intervenes in selected neighborhoods starting in 2020 with 100 neighborhoods that begin the process and should complete the intervention five years later (year 2025). At the housing level, the Thermal Conditioning Subsidies, and the Subsidy for new thermal standards in areas with an Atmospheric Decontamination Plan (PDA) will continue. Other measures planned are the Energy Rating System and the Sustainable Housing Certification.

Regional mitigation efforts

The Regional Climate Change Action Plans (PARCC) are the first climate management instruments focused on the subnational level, which are defined in the LMCC. In addition, the law establishes minimum contents that must be incorporated in the PARCC.

In terms of elaboration, four PARCC have been presented: Atacama, O’Higgins, Los Ríos, and Los Lagos.

Local mitigation efforts

In Chile, climate action will be formally and permanently integrated into the management of regional and local governments through the development and updating of current strategic development and territorial planning instruments and the climate change management and planning instruments proposed in the LMCC. Integrated coordination and cooperation among the country’s regions and municipalities will be key to achieving these goals while maintaining coherence with national policies; specific strategies and actions may differ among different territories, depending on their contexts and realities.

The formation of the CORECC, the development of the first four PARCC, and the notable efforts of some municipalities to develop Communal Action Plans on Climate Change (PACCC), are evidence of the beginning of a multilevel coordination process between the main objectives established in national public policies and in management instruments at the regional and communal levels.

Regarding the communal efforts on climate change, Chapter 6 of the ECLP, for Climate Change Management at Regional and Local Level, integrates goals linked to the new Recognition System for Local Governments of the HuellaChile Program, at the level of reporting and declaration of GHG inventories, and mitigation actions at the communal level. This is in addition to the elaboration of PACCC included in the LMCC, which must be prepared by the municipalities within three years (by 2025).

Within the national initiatives with local impact, there are: Municipal Environmental Certification System (SCAM); HuellaChile Program; Energy Community; Other initiatives (Chilean Network of Municipalities facing Climate Change, Association of Municipalities for Environmental Sustainability).

Private mitigation efforts

The public-private actions reported in this document have been managed by the Sustainability and Climate Change Agency (ASCC) and the HuellaChile Program.

The ASCC is a CORFO committee whose mission is to promote the inclusion of the climate change dimension and sustainable development in the private sector and in the territories. This, through voluntary agreements, coordination with other public institutions, promotion initiatives and the implementation of programs and projects that contribute to the construction of a sustainable, resilient, and low-carbon economy. One of the agency’s main instruments consists of Clean Production Agreements (APL), which are agreements entered into between a business sector and State administration bodies whose objective is to apply clean production through specific goals and actions and thus contribute to the sustainable development of companies. From 2012 to 2020, 115 APL have been signed with a reduction of 1,114,894 tCO2e.

The HuellaChile Program was created by the MMA with the objective of promoting the quantification, reporting and management of GHG emissions at the organizational level in the public and private sectors. As of July 2022, 1,706 organizations from different economic sectors in Chile’s public and private sectors have participated. During the operation phase, the HuellaChile Program has delivered a total of 952 seals of recognition, consisting of: 863 seals of

quantification, 63 reduction seals, 10 neutralization seals and 16 seals for excellence in GHG management. By July 2022, more than 100 face-to-face and virtual workshops on the calculation and management of GHG emissions have been held, with more than 3,000 participants in different cities of the country.

b. Measures to increase the non-conventional renewable energies participation

During the last years, Chile has made strong efforts to increase the participation of NCRE. In 2008, the NCRE Law (Law No. 20,257) established the mandatory requirement for electric companies (with a capacity higher than 200 MW, that also provided energy to the SIC and SING system) to ensure that at least 5% of the energy provided comes from NCRE sources, with a target of 10% by 2024. Then, in 2013, Law No. 20,698 increased the target to 20% by 2025.

Another important milestone in the efforts to transition to clean energies is the plan to phase out carbon plants, announced in 2019, and through which Chile committed to abandon carbon plants by 2040. Since then, this plan has been continued accelerated. By 2025, 50% of the total carbon plants will be withdrawn, which will be partially replaced by NCRE sources, including new sources under development and which are in the core of the Chilean strategy, such as the green hydrogen.

In 2022, it was approved the Law of Energy Storage (Law No. 21,505) which favor the storage of NCRE energies, avoiding its waste. This law establishes that the storage system not connected to the National Electric System, can participate of this, and should be paid for the electricity given to the National Electric System. At the same time, in connection with the electromobility, this Law includes a transitory reduction of certain regulatory payments that electric and hybrid cars make.

Another bill under discussion in Congress will provide better conditions for the improvement of NCRE. In effect, the Bill Which Promotes the Renewable Energies (Proyecto de Ley de Impulso a las Energías Renovables), establishes minimum quotas of renewable energy to energy providers, establishing an annual quota of 60% by 2030. Additionally, it includes a quota of 40% in certain time blocks, in order to promote the storage of renewable energies.

Finally, in April 2023 the Bill of Energetic Transition (Proyecto de Transición Energética: Transmisión eléctrica como sector habilitante) was publicly announced, which takes into account the national target to reach the carbon neutrality by 2050. This bill considered the feedback provided by the industry and contains three pillars: i) the efficient development of transmission lines, ii) the electric sector and climate change, and iii) the competence and fostering of storage systems.

On the regulatory side, in September 2020 was published the Flexibility Strategy. Flexibility is understood as the capacity of an electric system to respond to the variability and uncertainty of the demand and generation, in a safe and efficient way. Thus, this strategy established as objective several actions to develop market signals and processes that allow and promote the flexibility required by the National Electric System. In this moment, some of the regulatory changes derived from the strategy are in process or pending to be approved.

In December 2022, the Identification and Quantification of Renewables Energies was published, estimating the potential for electric and thermal use of these sources. Importantly, this report defines specific areas with a high potential for solar and wind energies (more detail here: https://exploradores.minenergia.cl/portal-ernc/websites/ICPER_2021_v2.pdf)

One of the main tools and process in order to plan the future of the country’s energy is the Long-Term Energy Planification. This is a process led by the Ministry of Energy, and its objective is to Project the energetic future in a 30-year horizon. For these purposes, it defines different long-term energy scenarios, showing different alternatives for the development of the energy matrix. In this moment, it is available the draft for the 2023-2027 Long-Term Energy Planification[8].

Green Hydrogen

On November 3, 2020, the Ministry of Energy published the National Green Hydrogen Strategy in Chile, which, among other aspects, seeks to take advantage of the opportunity to produce and export green hydrogen and its derivatives, which include ammonia, methanol, and synthetic fuels.

The National Green Hydrogen Strategy takes into consideration the benefit that this technology could have in the context of the current climate crisis, as well as the favorable growth projections of the global demand for energy supplied with hydrogen in different sectors of the economy.

Through three stages, it is intended to accelerate the use of green hydrogen in key national applications by 2025, enter the export market by 2030 and be the leading global exporter of green hydrogen at a cheap production cost.

In December 2022, Chile announced its 2023-2030 Green Hydrogen Action Plan, that will define the roadmap for the deployment of this industry, harmonizing economic development with the respect for the environment, territory and communities. This plan seeks to promote sustainable investments, the development of regulations and institutions, and the decarbonization and development of the local industry.

Although the participation of this technology in the current matrix is low, it is expected it will increase in the future.

c. Other measures

In addition to the measures to meet the established goals, Chile is working on other measures to comprehensively meet its environmental objectives. In this way, some initiatives stand out, such as the Development of a Taxonomy, and on the other hand, the creation of a "Biodiversity and Protected Areas Service".

Taxonomy

Economic sectors lack systematic planning for a changing climate. Therefore, it is increasingly necessary to promote and implement measures to stop global warming. A fundamental initiative is to ensure that economic activities and investments are consistent, throughout their economic life, with the paths of reducing emissions, adaptation to climate change and environmentally sustainable development.

In this context, and in order to support the alignment of investments towards environmentally sustainable activities, the need to have classification systems or “taxonomies” that make it possible to determine, in an objective and credible manner, which activities, projects and investments can be considered environmentally sustainable.

Currently, the Ministry of Finance is preparing documents and inputs that will set the basis to progress towards the elaboration of a local Taxonomy that standardizes those economic activities that can be considered environmentally sustainable at the national level, promoting greater transparency in the markets, allowing the comparability of activities around its environmental sustainability, strengthening and aligning investment towards economically sustainable activities and mitigating “greenwashing”.

Biodiversity and Protected Areas Service

During the last governments, Chile has showed a broad commitment to the creation of a National Service for Biodiversity and Protected Areas (Servicio de Biodiversidad y Áreas Protegidas). Thus, in June 2023 was approved by Congress the Law that creates it. During the preparation process, it was heard the opinion of different NGOs, members of the academy, as well as private and public entities.

The pillars are the following:

1. To integrate the conservation responsibilities in a single entity, coordinating the different players.
2. To create a public service in charge of protecting biodiversity.
3. To provide the country management tools for the conservation of biodiversity
4. To strengthen regulation and provide robust and efficient financing for conservation.