7. Impact Report
a. Environmental impact of the green portfolio
This report gives an account of the progress, in environmental terms, of the implementation of the projects financed through the issuance of Chilean Sovereign Green Bonds. The information contained herein is presented in accordance with the requirements established in the "Green Bond Framework", published on May 20, 2019, and subsequently adapted through the "Chile Sustainable Bond Framework" (See Framework).
The projects financed through the Bonds in the Ministries of Energy, Transport and Telecommunications and Public Works are reported here. This report estimates the contribution in reducing greenhouse gas emissions for the projects listed in Table 10, where a brief description of their objectives is presented.
Table 10
Summary of projects considered in the environmental report, by ministry, project line, name and description.
|
Ministry |
Project Line |
Program/project name |
Description |
|
Energy |
Renewable Energy |
Reconstruction program for homes affected by natural disasters that occurred in 2014 and 2015 |
The Program arises in response to the need to rebuild homes affected by the damage caused by the Norte Grande earthquake and the Valparaíso fire in 2014. A subsidy was promoted for the installation of Solar Thermal Systems, for heating sanitary water, in the homes (subject to technical feasibility). In total, it seeks to benefit 2,677 social homes located in the regions of Arica and Parinacota, Tarapacá and Valparaíso. From 2016 to 2021, 2,439 Solar Thermal System have been installed. |
|
Construction of a residential photovoltaic (PV) system in Isla Huapi, Futrono, Los Ríos region. |
The project arises as a response to the community's need to have electricity, in a sustainable manner and in accordance with its isolation conditions. The project consists of the construction of 151 individual self-generation systems made up of a 2.76 kWp PV plant and a 25 kWh battery bank. 100% of the systems are located on Huapi Island, Futrono commune, Los Ríos region. The beneficiaries correspond to 146 families, 4 churches and 1 community ruca. |
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|
Technical assistance program for the development and implementation of photovoltaic projects in public institutions. |
The Public Solar Roofs Program is an initiative of the Ministry of Energy inserted in the Energy Agenda, aimed at installing photovoltaic systems (SFV) on the roofs of public buildings, with the aim of contributing to the maturation of the photovoltaic market for self-consumption, and reduce the cost of electricity consumption. 8 high schools were benefited in 2018, and 17 high schools in 2019, thus fulfilling 100% of the planning. Additionally, along with those installed in 2019 by the PTSP, the PV systems tendered in 2020 by the ASE (73 kindergartens) are included in this report. |
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|
Public Works |
Green Buildings |
Sustainable Public Building |
Projects and architectural works that consider the "Sustainable Building Certification" (CES). The objective of the system is to evaluate, qualify and certify the degree of environmental sustainability of the building, understanding this as the capacity of a building to achieve adequate levels of internal environmental quality, with an efficient use of resources and low generation of waste and emissions. Among the 76 projects reported by the MOP, design, replacement, and construction works under CES certification are included, which present different stages of progress, with four possible ones: i) Certified; ii) Precertified; iii) Registered; and iv) Not Registered. Certified projects are those that are operational, and therefore achieve reductions. Those that are pre-certified, registered and not registered, in some cases, have information that allows projecting GHG emission reductions once they are operational. |
|
Water Management |
Water Resources Management |
Considers the report of the 2021 management indicators committed in the framework of the Management Control System of the Budget Office. Specifically, it focuses on the following indicators: i) Pronouncement and environmental inspections; ii) research and evaluation of water resources; and iii) operational hydrometeorological stations. |
|
|
Transport and Telecommunications |
Clean Transport |
Construction of Line 3 of Metro |
It contemplates 22kms, which includes 18 underground stations, 6 of which are stations connected to lines 1, 2, 4, 5 and 6. The layout extends through 6 districts of Santiago. The number of users is estimated at 660,000. |
|
Extension of Line 3 of Metro |
Extension of Line 3 of Metro by 3.8 km, building 3 new stations towards the district of Quilicura. This will benefit nearly 200,000 residents. |
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|
Construction of Line 2 Extension of Metro |
Extension of Line 2 of Metro by 5.1 km, and 4 new stations to the districts of El Bosque and San Bernardo. |
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|
Construction of Line 7 of the Metro. |
This work will benefit more than 400,000 people and will facilitate access to the Metro for residents of La Cisterna, alleviating the influx of La Cisterna Intermodal Station on lines 2 and 4A. |
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|
Incorporation of electromobility in the Public Transport of Santiago I |
The route extends for 25.9 km between the communes of Renca and Las Condes. |
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|
Incorporation of electromobility in the Public Transport of Santiago II |
The main benefits are the decongestion of line 1, connection with lines 6 and 7 and increasing the participation of the metro in the Santiago transport system. |
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|
Incorporation of electromobility in public transport in Santiago III |
Incorporation of 100 electric buses to the Santiago Public Transport System (Transantiago), including an electric charging terminal and 40 smart bus stops (USB port, Wi-Fi, variable information panels and energy through solar panels) |
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|
Incorporation of electromobility in the public transport of Santiago IV |
Incorporation of 100 electric buses to the Santiago Public Transportation System (Transantiago), plus 2 electric charging terminals. |
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|
Renovation of Rancagua Metrotrain |
Incorporation of 208 electric buses to the Santiago Public Transport System, plus 1 terminal suitable for electric mobiles. |
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|
Transportes y Telecomunicaciones |
Transporte Limpio |
Construction of line 8 of Metro |
The route is 19 km long and connects with line 1. It will benefit 1.6 million people in the districts of Ñuñoa, Macul, La Florida and Puente Alto and will allow lines 4 and 5 to be decongested. |
|
Metrotrain Alameda-Melipilla |
This project will come into operation in 2027 and is financed 100% with public funds. |
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|
Metrotrain Alameda-Chillán |
Enabling of local passenger service between Melipilla and Santiago. |
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|
Metro train Coronel-Lota |
Enabling of an express passenger service between Chillán and Santiago. |
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|
Subway Reconstruction |
Enabling of passenger service between Coronel - Lota. |
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|
Construction of Line 4 extension of Metro |
It corresponds to reconstruction works to enable the stations damaged during the social mobilizations of the year 2019. |
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|
Transport and Telecommunications |
Clean Transport |
Tender of Buses for the Metropolitan Public Transport System (RED) |
The tender means the incorporation of 992 electric buses, 82 short buses and 910 medium buses, which will be integrated into the system in 2022. |
The sectoral ministries identified in Table 10 reported environmental information of qualitative and/or quantitative nature, corresponding to the 2021 results, according to the operation of the projects, and the effective availability of data. It is important to note that the impact report presents information on the projects that are operational, achieving reductions in greenhouse gas emissions, local pollutants, and also management results, in accordance with the institutional commitments. In the case of Sustainable Building Certification projects, from the Architecture Directorate (Ministry of Public Works), it is informed also the estimated GHG reduction for the projects in the pipeline.
Each sectoral ministry in charge of implementing projects financed by the Green Bonds applied an ad hoc methodology to estimate the environmental impact, reporting, according to the information available, indicators designed by each sector for following-up and monitoring progress. The main aspects reported are mainly related to the activity or measure committed the reduction of emissions (pollutants and/or greenhouse gases), the reduction of energy consumption, and the fulfillment of institutional objectives and goals in relation to the project.
Projects of the Ministry of Energy
Table 11 was prepared based on the information provided by the Ministry of Energy. The assumptions are the following:
- Reduced emissions parameters: IPCC 2006 sources for LPG and NG and Open Energy for electricity emission factors;
- Contributions of Solar Technical Systems (SST): FChart algorithm, considering the commune of the capital of each region as representative;
- Average efficiency of standard Sanitary Hot Water (DHW) equipment = 80%;
- Emissions correspond to the year 2021, using the average emission factor of the SEN for the year 2021. The average emission factor for 2021 of the SEN is 0.3907 tCO2eq/MWh (http://energiaabierta.cl/visualizaciones/factor-de-emision-sic-sing/);
- For the diesel generator, an efficiency of 40% is considered, obtaining an EF of 0.67 tCO2eq/MWh.
Table 11
Summary of Environmental Impact (avoided CO2e emissions) Energy sector projects.
|
Name of the project and environmental measures contemplated |
Indicator Name |
Calculation form |
Result |
|
Reconstruction program for homes affected by natural disasters that occurred in 2014 and 2015. These homes incorporate Solar Thermal Systems (STS) for heating sanitary water, in the selected homes. |
Annual greenhouse gas (GHG) emissions avoided (tCO2e) |
The estimate of mitigated emissions (CO2) in a year t, is calculated as the level of energy saved in a year t by the average emission factor of the year t. The level of savings in a year t corresponds to the number of STS projects implemented multiplied by the annual energy production that a SST would have in a given region. The average emission factor for year t corresponds to the weighted average of the emission factors by energy (LPG, NG and electricity) by disaggregating energy consumption for domestic hot water in the residential sector. |
5,192 tCO2eq avoided Corresponding to a universe of 2,439 homes delivered to beneficiaries by SERVIU, where each home has an SST in operation from 2016 to 2021. |
|
Construction of a residential photovoltaic (PV) system in Isla Huapi, Futrono, Los Ríos region. |
Annual greenhouse gas (GHG) emissions avoided (tCO2e) |
Annual generation of renewable energy (MWh) multiplied by the Emission Factor of the National Electric System |
Year 2021 = 59.47 tCO2eq Year 2020 = 58.35 tCO2eq Year 2019 = 61.74 tCO2eq Year 2018 = 58.45 tCO2eq |
|
Technical assistance program for the development and implementation of photovoltaic projects in public institutions. |
Annual generation of renewable energy (MWh) |
Minimum monthly design generation, multiplied by 12 months and by the number of operating systems, divided by a thousand. |
Year 2021 = 320.611 MWh; Annual emissions avoided (diesel generator): 125.26 tCO2eq Year 2020 = 496.8 MWh Year 2019 = 152.208 MWh Year 2018 = 139.608 MWh |
Source: Ministry of Energy
Projects of the Ministry of Transport and Telecommunications
The information presented was constructed based on the studies required for the environmental impact assessment process for each of the projects presented, for which the public company Metro requested the collaboration of the Transportation Planning Secretariat (SECTRA) of the MTT. These evaluations correspond to projections calculated from transport simulations (baseline situation and project). Once the calculations of the emission levels for the base scenario and the project have been obtained, the comparison of pollutant emissions, including greenhouse gases (GHG), is made.
For electromobility projects, the reduction in emissions from electric buses was obtained from the modeling carried out for the "Fourth Annual Report on Atmospheric Emissions of the RED Bus System Year 2021", assuming that in the case without the project, the buses would have been renewed by buses with Euro VI technology. This methodology was not incorporated in the “2020 Allocation, Eligibility and Environmental Impact Report”.
The other projects specified in Table 12 have not entered into operation, except for the Metro Reconstruction; however, no information is available. Regarding Line 8, SECTRA estimated in the framework of the EIA of the project, estimated savings of CO2eq is 25,241.2 (ton) and of PM 2.5 is 1.3 (ton) per year. In relation to the EFE projects (Metrotren Alameda-Melipilla Metrotren Alameda-Chillán Metrotren Coronel-Lota), to date they are in a Carbon Footprint estimation process.
Table 12
Summary of Environmental Impact projects Transport sector.
|
Projects |
Indicator Name |
Result |
|
Construction of Line 3 of the Red Metro S.A. |
km of new lines |
22.0 |
|
Number of users |
660,000 |
|
|
Reduced annual GHG emissions (tCO2e) |
170,300 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
7.4 |
|
|
Construction of Line 3 Extension of Red Metro S.A. |
km of new lines |
3.8 |
|
Number of users |
200,000 |
|
|
Reduced annual GHG emissions (tCO2e) |
1,246 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
0.2 |
|
|
Incorporation of electromobility in the Public Transport of Santiago I |
Number of buses replaced |
100 |
|
Reduced annual GHG emissions (tCO2e) |
1,974 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
0.0054 |
|
|
Incorporation of electromobility in the Public Transport of Santiago II |
Number of buses replaced |
100 |
|
Reduced annual GHG emissions (tCO2e) |
1,974 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
0.0054 |
|
|
Incorporation of electromobility in public transport in Santiago III |
Number of buses replaced |
200 |
|
Reduced annual GHG emissions (tCO2e) |
3,974 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
0.0107 |
|
|
Incorporation of electromobility in the public transport of Santiago IV |
Number of buses replaced |
365 |
|
Reduced annual GHG emissions (tCO2e) |
7,204 |
|
|
Atmospheric pollution avoided (ton PM2.5) |
0.0196 |
|
|
Buses for RED system: Metropolitan Public Transport Tender |
Number of buses replaced |
992 |
|
Reduced annual GHG emissions (tCO2e) |
Not available |
|
|
Atmospheric pollution avoided (ton PM2.5) |
Not available |
Projects of the Ministry of Public Works
Table below was prepared based on the information provided by the Ministry of Public Works. To calculate energy saving, it was used the “Assessment and Qualification Manual, Version 1 (2014)” of the National Certification System for Environmental Quality and Energy Efficiency for Buildings for Public Use. The realization of the estimates of reduction of energy consumption was in charge of the Construction Institute, in accordance with the process defined for Sustainable Building Certification (CES). The results for the projects of the Ministry of Public Works are presented in Table 13.
Table 13
Summary of Environmental Impact projects Public Works sector.
|
Name of the project and environmental measures contemplated |
Indicator Name |
Calculation form |
Result |
|
Sustainable Public Building (EPS). Corresponds to projects and works of architecture that consider Sustainable Building Certification (CES). |
Percentage of energy savings in EPS projects. Note: A total of 160 EPS Program projects were considered, reporting 12 of them that had information available at the time the report was closed, in accordance with the CES process. |
Percentage of electric consumption reduction with respect to reference levels |
Year 2021: 10,046 tCO2eq/year |
|
Status of current projects in the portfolio as of 2021 |
Projects were calculated and clasified considering their status of progress, including their potential estimated reduction |
|
|
|
Water Resources Management through the General Directorate of Waters (DGA) |
Pronouncements and environmental inspections |
Percentage of inspections environmental inspections carried out, with respect to the total number of environmental inspections requested by the Superintendence of the Environment |
Year 2021: 93.3% |
|
Research and Assesments on Water Resources |
Percentage of studies completed in year t with respect to studies scheduled to be completed in year t for the management of aquifers or new water sources. |
Year 2021: 100% |
|
|
Operational Hydrometeorological Stations |
Percentage of hydrometeorological network stations that remain operational during year t, with respect to the total number of stations that make up the hydrometeorological network. |
Year 2021: 98.4% |
b. Social impact of social programs
El presente reporte da cuenta de los proyectos This report gives an account of the social projects selected to be financed through the issuance of Social Bonds of the State of Chile. This issuance was carried out simultaneously with the preparation of the Sustainable Bond Framework, published in November, 2020.
With the collaboration of the Budget Office, it was analyzed the programmatic offer of the State in terms of social development, in order to identify social programs or initiatives that were partially or totally focused on the most vulnerable population. With this purpose, a qualitative and/or quantitative analysis was carried out, where figures were reviewed both at the level of budget execution, as well as the different targeting criteria of the programs carried out by different public entities. The information was obtained mainly from the budget execution reports made by the Budget Office, together with the monitoring reports of the Integrated Bank of Social and Non-Social Programs, which are carried out by the Ministry of Social Development and Family.
In relation to the impact of the programs included, it is used the information provided by the Integrated Social and Non-Social Programs Database, obtaining indicators that assess areas such as the coverage and effectiveness of the projects evaluated. Given that, all the projects financed through this instrument are in force in 2022, which mainly consists of direct transfers to households. Additionally, there are programs that provide other types of benefits, such as food in educational establishments, resources for the purchase of housing, among others.
Regarding the beneficiary population, it should be noted that more than 90% of the budget is allocated to the 60% of the most vulnerable population, according to the Social Registry of Households. The foregoing, without prejudice to the fact that the rest of the resources are also allocated to vulnerable segments of the population, only through other targeting criteria.
Using the National Socioeconomic Characterization Survey (CASEN) of the year 2020, it is possible to characterize the first three quintiles according to the autonomous income of households (income in 2020 pesos), which constitute an approximation to the first three quintiles of vulnerability identified by the Social Registry of Households (SRH). On average, households belonging to these quintiles are made up of 3.2 individuals, a figure that is relatively higher than the national average of three members per household. In this area, the average autonomous per capita income of households, which corresponds to liquid income from work, rents and others, of the first three quintiles is equal to $115,000. At the same time, and mainly due to the transfers made by the State, the total income per capita of households amounts to $226,000, which is an example of the impact of social programs.
The social programs to be financed by the issuance of Social and Sustainable Social Bonds are shown in Table 14. The information comes from the Integrated Social and Non-Social Programs Database of the Ministry of Social Development and Family, and it focuses on showing the resources that are effectively transferred to each project. From another point of view, the budget execution figures do not include administrative expenses. At the same time, it shows the number of beneficiaries of each program and the average contribution received by each one.
Table 14
Impact indicators of the social projects that are the object of the Social Bonds.
|
Number of Benefited |
Annual Average contribution ($) |
Number of Benefited |
Annual Average contribution ($) |
|
|
2020 |
2021 |
|||
|
Pension contribution for elderly people |
988,787 |
1,402,950 |
1,090,982 |
1,526,099 |
|
Pension contribution for people with special needs |
78,911 |
1,266,021 |
78,911 |
1,526,099 |
|
Basic solidarity pension for elderly people |
409,643 |
1,984,862 |
409,643 |
2,162,786 |
|
Basic solidarity pension for people with special needs |
18,115 |
1,888,800 |
18,115 |
2,121,812 |
|
Permanent support for families |
1,554,819 |
110,255 |
1,554,819 |
111,767 |
|
Family subsidy |
2,125,127 |
176,957 |
2,129,527 |
179,321 |
|
Solidarity fund for housing |
17,289 |
53,058,650 |
17,823 |
48,691,915 |
|
Preferential school subsidy |
2,611,293 |
348,436 |
2,081,070 |
499,025 |
|
Schools food program |
2,029,882 |
60,554 |
1,582,817 |
456,501 |
Source: Integrated Social and Non-Social Programs Database, Ministry of Social Development and Family.
Social Impact of FOGAPE: The fund for Small Enterprises correspond to a fund that works on a notional basis, and that received a capitalization, considering the situation faced by companies during the pandemic. Thus, it is not possible to tie the guarantees given to the capitalization, although in effect, the funds were used for that purposes, considering the situation derived from COVID-19.
As reference, as of March 26, 2022, the last data available, guarantees totaled US$9,976 million, of which 25.9% were given to SMEs.
Social Impact of the Emergency Family Income: Being an extraordinary program, derived from the situation caused by COVID-19, and considering as well the changing pandemic conditions, this support, initially conceived as a support for the population affected by mobility restrictions, suffered subsequent changes, especially regarding the target group.
Notwithstanding the above, and as mention in the corresponding section, for this report it is considered only the payment effected until March, 2021. This is, when the support was oriented to the poorest 60% of the population.
The Emergency Family Income, as well as other mechanism of the social protection network, grew up during the first months of 2020, as the mobility restrictions increased, reaching its peak, in terms of the amount, in August of that year ($606,739 million). This amount decreased as the mobility restrictions were lifted.
In terms of households benefited, the peak was reached in October, 2020 when 3,356,516 people received the support.
Table 15
Impact indicators of social projects associated to Social Bonds.
|
Month |
People benefited |
Households benefited |
|
May, 2020 |
3.617.480 |
1.264.962 |
|
June, 2020 |
6.645.663 |
2.473.333 |
|
July, 2020 |
7.737.622 |
2.998.253 |
|
August, 2020 |
7.986.630 |
3.169.115 |
|
September, 2020 |
8.168.005 |
3.287.987 |
|
October, 2020 |
8.277.887 |
3.356.516 |
|
December, 2020 (*) |
8.267.099 |
3.350.504 |
|
January, 2021 |
5.195.187 |
1.911.405 |
|
February, 2021 |
6.349.131 |
2.399.399 |
|
March, 2021 |
6.580.566 |
2.520.354 |
(*) It was a special support for Christmas, that benefited the same group although by a different amount
Source: https://reporte.hacienda.cl/ingreso-familiar-de-emergencia/