CHILE Law and Practice Contributed by: Pablo Méndez, Christian Rojas, Pablo Neupert and Vicente Huidobro, TM Abogados
At the same time, in cases where the facts under inves- tigation may constitute environmental or economic crimes, the SMA is obliged to report the information to the public prosecutor’s office ( Ministerio Público ), which conducts the criminal investigation pursuant to the Criminal Procedure Code. In such cases, prosecu- tors may request investigations by the investigative police ( Policía de Investigaciones ) or technical agen- cies (such as Servicio Agrícola y Ganadero (Agriculture and Livestock) or Servicio Nacional de Pesca (Fisher- ies)), as appropriate. 13. Climate Change and Emissions Trading 13.1 Key Policies, Principles and Laws The Chilean climate regulation is structured around a set of principles, policies and legal instruments guid- ing both public and private action on climate change. The central instrument is the Framework Law on Cli- mate Change (Law No 21,455), which establishes carbon neutrality by 2050, as a guiding objective, providing for a multi-level governance system involv- ing national, regional and local authorities. The law incorporates key principles in the Chilean legal sys- tem such as precaution, prevention, intergenerational equity and transversality, which shape the interpreta- tion and application of climate regulations. The Framework Law is implemented through various instruments, including: • the Long-Term Climate Strategy ( Estrategia Climáti- ca de Largo Plazo , or ECLP), which defines the national mitigation and adaptation trajectory until 2050; • the Sectoral Mitigation and Adaptation Plans, which assign specific responsibilities to ministries such as Energy, Transport, and Agriculture; and • the Regional Climate Change Action Plans, which adapt the goals to territorial conditions. Additionally, the Framework Law establishes the obli- gation to incorporate the climate change variable into the Environmental Impact Assessment System (SEIA) (Article 40). Projects proponents must assess the
effects of climate change on relevant environmental components and ensure consistency with sectoral, regional and local climate management instruments. Finally, Chile’s climate policy is closely aligned with international commitments. The country is a party to the Paris Agreement and updated its Nationally Deter- mined Contribution (NDC) in 2023 – the first submit- ted under the Framework Law – with strengthened commitments on emissions reduction and adaptation. 13.2 Targets to Reduce Greenhouse Gas Emissions Chile has established a specific legal framework to address climate change and reduce greenhouse gas (GHG) emissions. The main instruments include tax, regulatory and international commitments designed to support both mitigation and adaptation efforts. As noted in 13.1 Key Policies, Principles and Laws, the Framework Law on Climate Change sets the national goal of achieving carbon neutrality by 2050. The principal instruments supporting this objective include the following. • Green tax (Law No 20,780) – applicable to fixed emission sources, allowing emitters to offset their taxable emissions through certified GHG reduc- tions or verified mitigation projects. • Environmental Impact Assessment System (SEIA) – requires the inclusion of climate change variables in project assessments, reinforced by the SEIA Regulation and the 2024 Methodological Guide issued by the Environmental Assessment Service to ensure consistent consideration of climate impacts. • Nationally Determined Contribution (NDC) – updat- ed in 2023 for the 2025–35 period, introducing more ambitious mitigation and adaptation targets under the Paris Agreement framework.
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