Assisting Chile to implement its Carbon Tax

Carbon Counts, alongside Chilean partners, has been asked by the World Bank’s Partnership for Market Readiness (PMR) to work with the Ministry of Energy in Chile to analyze interactions between the country’s planned Carbon Tax (Ley 20.780) and other existing and planned energy policies in the country.

Carbon taxes can be effective in mediating economy-wide actions to reduce greenhouse gas emissions, and thereby complement other policy measures aimed at e.g. promoting renewable energy technologies and energy efficiency. On the other hand, carbon taxes can also impact negatively on other policies and measures, reducing their environmental effectiveness and increasing the administrative burden without delivering any additional benefits for the climate. Other issues and overlaps can also arise for implementation, for example, regarding responsibilities for emissions monitoring and reporting (“MRV”).

The purpose of this project is to assess the tax in Chile in these contexts and also to draw on lessons learned from other jurisdictions in order to ensure readiness for implementation at its start in 2018.

The project will be carried out over the next 4 months, working in association with E2BIZ, the World Bank PMR and the Ministry of Energy, Santiago de Chile.