climate finance in chile
TRANSCRIPT
Climate Finance in Chile Carbon Expo 2015
Francisco Pinto Ministry of the Environment of Chile
May, 2015
Gobierno de Chile | Ministerio del Medio Ambiente
Outline
• Context
• GHG mitigation policies and actions
• Needs and suport received
• Climate Expenditure
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Gobierno de Chile | Ministerio del Medio Ambiente
Context I
• Some figures: – Population: 17,556,815 – GDP (ppp) per cápita (2013): US$21,942 – Gini (2013): 0,50 (OECD average: 0,31)
• Chile is not a major contributor of GHG
emissions. In 2010: – total emissions: 91,575.9 GgCO2 eq (0,25%
total). – Per capita emissions: 5.3 t CO2 eq per year
• Increasing GHG emissions: 83.5% (1990-2010) • Main drivers Energy and Agriculture sectors
(90% total national emissions) 3
• 75% GHG total • Drivers:
• coal and diesel consumption for electricity generation (40%)
• Liquid fuel (31%)
• 15% GHG total • Drivers:
• Use of synthetic nitrogen-based fertilizers
• 10% total employment
Gobierno de Chile | Ministerio del Medio Ambiente
Context II • Chile is a highly vulnerable country for
climate change (IPCC, 2001).
• The economic losses are estimated to be around 1,1% of annual GDP (2010-2100).
• Negative impacts on: – Mining – Agriculture – Drinking water – Hydropower – Health
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Gobierno de Chile | Ministerio del Medio Ambiente
Context III • Institutional framework:
– Ministry of the Environment (2010)
• Climate Change Department (CCD)
– Ministry of Energy (2010)
– Ministers Council for Sustainability and Climate Change (2014)
• National Climate Change Action Plan, 2008-2012 (PANCC)
• Today working on PANCC 2016-2021
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Gobierno de Chile | Ministerio del Medio Ambiente
GHG Mitigation I • In 2009 Chile voluntarily announced its willingness to join a global
effort to mitigate greenhouse gas emissions. – Reducing, by 2020, 20% of projected emissions from 2007 (BAU scenario)
through nationally appropriate mitigation actions. 1. Policies and actions
– Energy efficiency – Renewable energy
• Today 33% (Expected: 45% by 2025)
2. Nine Nationally Appropriate Mitigation Actions (NAMAs)
– Five registered with the UNFCCC NAMA Registry, for example: • Clean Production Agreements • National Forestry and Climate Change Strategy
3. Measurement, reporting and verification (MRV) of mitigation
actions – Fostering transparency in GHG mitigation actions implemented in the
country.
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Gobierno de Chile | Ministerio del Medio Ambiente
GHG Mitigation II 4. Market-based instruments for environmental externalities (PMR
support) – Green Taxes:
• In September 2014, Chile passed a green tax law. • Three new taxes were introduced:
– Tax on CO2 emissions from stationary sources with boilers and turbines – tax on local contaminants also on stationary sources with boilers and turbines
(PM, SO2 and NOX). – tax on the first sale of new cars considering the expected NOx emissions over
their lifetime. – These taxes will be implemented in 2017, and require detailed regulation which
will be developed during 2015 and implemented in 2016.
– Exploring potential emissions trading systems (ETS)
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Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received I • Chile’s institutional structure and capacities have advanced
substantially in recent years. Nonetheless, there are needs, gaps and barriers that hinder the development of climate actions.
• Barriers: – Inability to receive direct international funding (Budget law) – Difficult fund allocation to climate change-related matters (not identified by
laws)
• Needs
– Reporting: to establish permanent and binding reporting systems for the country’s National Communications.
– Mitigation: Development of information management systems in all sectors. – National GHG Inventory: To integrate IT system for housing data and
supporting the work of SNICHILE. – PANCC (2016-2021): Adaptation and mitigation
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Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received II • Support received:
– As a developing country, Chile is always seeking for international support.
• Between 2011 and 2014: US$ 8,054,941. – Not including contributions approved but not yet available
(US$39,083,420)
• 50%: Donation from a group of countries and organizations working collectively on a specific initiative
• 40%: Bilateral-country-specific donations • 10%: International finance agencies
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Gobierno de Chile | Ministerio del Medio Ambiente
Needs and support received III • Government projects and programs that have received the bulk
of funding
• Mitigation Action Plans and Scenarios (MAPS) • Low Emission Capacity Building (LECB) • Climate Change projects sponsored by GEF • The Forest Carbon Partnership Facility • Partnership Market Readiness (PMR)
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• PNUD (Germany, Australia and European Comission
• Defining and operationalizing a National Inventory System
• Conceptualizing MRV system for NAMAs
• Children Investment Fund Foundation (CIFF)
• La Alianza Clima y Desarrollo (CDKN) • Switzerland • Denmark • Chile
• Business as Usual (BAU) and
Required by Science (RBS) scenarios. • Mitigation options and scenarios • Policy briefing
• The World Bank (Australia, Denmark, European Comission, Finland, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom, United State)
• Regulatory, Economic and Institutional Analyses needed to asses the viability of a carbon pricing instrument for the energy sector.
• Design and implementation of MRV framework and Registry system.
• Communication strategy and stakeholder engagement.
Gobierno de Chile | Ministerio del Medio Ambiente
Climate Expenditure • Climate Public Expenditure and Institutional Review (CPEIR)
– Supported by LECB
• The CPEIR examines the linkages between the three spheres of: national climate change policy; the institutional structures through which policy is channelled; and the resource allocation processes whereby public funding is made available for the implementation of relevant projects, programmes and policies.
• Chile – Public Sector (2015)
• 2010-2014 • Sector: Energy and Agriculture
– Private Sector (2016)
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Thanks
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