In tandem, Chile has operationalized the Sistema de Compensación de Emisiones (SCE), a market-based mechanism allowing entities subject to the Green Tax to compensate their emissions by purchasing verified emission reduction certificates from approved projects. These projects, endorsed by the Ministry of Environment and independently verified, enable a flexible compliance path that integrates environmental and economic benefits. The SCE is expected to mobilize approximately $100 million annually, stimulating investments in clean energy, electrification, and waste management initiatives, including methane capture and thermal insulation upgrades.
Key government figures emphasize that the SCE accelerates Chile’s decarbonization by redirecting resources from polluters to sustainable projects, enhancing air quality and public health while supporting new technologies such as electromobility. The mechanism also establishes the country’s first regulated carbon market, providing industry players with tools for tax reduction and environmental compliance. The SMA continues to enforce reporting, verification, and monitoring protocols to ensure accurate emission data and facilitate efficient tax collection by the Internal Revenue Service (SII). This integrated approach signals significant progress in Chile’s environmental policy framework and its commitment to a greener economy.
This article was curated and published as part of our South American energy market coverage.
