January 28, 2025

 

Every January 28th, the World Day for the Reduction of CO₂ Emissions is commemorated, an initiative of the United Nations that seeks to raise awareness about the effects and consequences of global warming.

“This commemoration invites us to reflect on both the progress made and the challenges that remain in achieving the goals established in each area,” says Pamela Méndez, lead partner of climate change and sustainability services at EY Chile.

Chile has not lagged behind in setting goals, and in recent years, it has advanced its commitments to address this situation. On May 30, 2022, the Framework Law on Climate Change was enacted, creating a legal framework for mitigation and adaptation, aiming to fulfill the international commitments made by the country under the United Nations Framework Convention on Climate Change and the Paris Agreement.

Through the establishment of citizen participation processes, the law sets the goal for the country to achieve carbon neutrality by 2050, while also reducing vulnerability and increasing resilience to the adverse effects of climate change. Additionally, as an intermediate goal, Chile submitted its Nationally Determined Contribution (NDC) in 2020, which sets a limit on the country’s greenhouse gas (GHG) emissions and must be updated every five years.

For this reason, the Ministry of the Environment recently began the process of evaluating these commitments to develop the 2025 version.

“Chile comes to this commemoration with a renewed commitment and concrete actions to reduce emissions,” says Margarita Ducci from the United Nations Global Compact.

Regulatory Framework

According to Raúl O’Ryan, an academic from the Energy Transition Center (CENTRA) at the Faculty of Engineering and Sciences of the Adolfo Ibáñez University (UAI) and a researcher at CR2, the Framework Law on Climate Change is “the backbone” of local climate policies.

“Undoubtedly, pioneering sectoral measures have been adopted, especially in the energy sector, which positions Chile as a leader in the region in terms of energy transition. However, despite these achievements, there are industries where it is essential to continue advancing urgently,” explains Ducci.

The law also defines sectoral and territorial responsibilities to ensure the implementation of emission budgets and mitigation and adaptation plans.

“Aligning all sectors, regions, and municipalities with the established goals ensures that action efforts are strategic and coordinated,” highlights Pamela Méndez from EY Chile.

Meanwhile, experts emphasize that the country has made progress in energy generation and transportation, with the early closure of coal-fired power plants and a comprehensive push for energy efficiency, renewable energies, and electromobility.

However, the greatest challenge is to make strategic decisions so that sustainability drives economic growth.

“The diagnosis in the private sector is clear: we need to grow, and for that, we need good public policies that prioritize key industries and capitalize on the demand for sustainable products,” says Gabriel Acuña from Deloitte.

To achieve this, financial resources must be mobilized through incentives, subsidies, and the implementation of efficient carbon markets.

“Chile has made progress in creating regulatory frameworks and public policies, but a more ambitious effort is still needed from the private sector to accelerate the necessary investments,” concludes Ducci.