Climate Finance in Chile

Transcription

1 Climate Finance in Chile Carbon Expo 2015 Francisco Pinto Ministry of the Environment of Chile May, 2015

2 Outline Context GHG mitigation policies and actions Needs and suport received Climate Expenditure 2

3 Context I Some figures: Population: 17,556,815 GDP (ppp) per cápita (2013): US$21,942 75% Gini GHG (2013): total 0,50 (OECD average: 0,31) 15% GHG total Drivers: Drivers: Chile coal is and not diesel a major consumption contributor for of GHG Use of synthetic nitrogen-based electricity generation (40%) emissions. In 2010: fertilizers Liquid fuel (31%) total emissions: 91,575.9 GgCO 2 eq (0,25% 10% total employment total). Per capita emissions: 5.3 t CO 2 eq per year Increasing GHG emissions: 83.5% ( ) Main drivers Energy and Agriculture sectors (90% total national emissions) 3

4 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 ( ). Negative impacts on: Mining Agriculture Drinking water Hydropower Health 4

5 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, (PANCC) Today working on PANCC

6 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. 6

7 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 CO 2 emissions from stationary sources with boilers and turbines tax on local contaminants also on stationary sources with boilers and turbines (PM, SO 2 and NO X ). 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 Exploring potential emissions trading systems (ETS) 7

8 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 ( ): Adaptation and mitigation 8

9 Support received: Needs and support received II 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 9

10 Needs and support received III Government projects and programs that have received the bulk of funding Mitigation Action Plans and Scenarios (MAPS) United State) Low Emission Capacity Building (LECB) Climate Change projects sponsored by GEF The Forest Carbon Partnership Facility (CIFF) Partnership Market Readiness (PMR) PNUD (Germany, Australia and European Comission Defining and operationalizing a National Inventory System Conceptualizing MRV system for NAMAs The World Bank (Australia, Denmark, European Comission, Finland, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom, Children Regulatory, Investment Economic Fund Foundation and Institutional Analyses needed to La Alianza asses Clima the y viability Desarrollo of a (CDKN) carbon pricing Switzerland instrument for the energy sector. Denmark Design and implementation of MRV Chile framework and Registry system. Communication strategy and Business stakeholder as Usual engagement. (BAU) and Required by Science (RBS) scenarios. Mitigation options and scenarios Policy briefing 10

11 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) Sector: Energy and Agriculture Private Sector (2016) 11

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