Chile completes first cycle of Green Tax Emissions Compensation System, with four VCS-certified projects now eligible on domestic carbon market; energy generation projects expected to generate almost 260,000 tonnes of CO2e emission reductions

Four projects certified with Verra’s flagship Verified Carbon Standard (VCS) Program now provide a pathway to contributing to Chile’s domestic carbon market. The first cycle of the Green Tax Emissions Compensation System, known as Sistema de Compensación de Emisiones del Impuesto Verde (SCE) in Spanish, has reached completion, marking a significant milestone in Chile’s efforts to reduce and remove greenhouse gas (GHG) emissions and meet the goals of its Nationally Determined Contribution (NDC).

In total, eight projects, all from the energy generation sector, are eligible to issue units and available for trade within the scope of Chile’s domestic carbon market. Together, these projects are expected to generate emission reductions of almost 260,000 tCO₂e. Of these eight projects, four are certified with Verra’s VCS Program and have collectively issued 106,000 Verified Carbon Units (VCUs). This represents 41% of the credits allocated for the initial cycle of the SCE.

These four projects are as follows:

• Mariposas Hydroelectric Project (Verra Project 819)
• MSA-1 Hydropower Plant (Verra Project 1945)
• Ovejería Photovoltaic Power Plant (Verra Project 1840)
• Lican Hydroelectric Plant (Verra Project 1083)

To foster collaboration with stakeholders in Chile more broadly, Verra will also participate in the Chile Carbon Forum (external), which will take place from October 8 through 9, 2024, at the Faculty of Economics and Business at the University of Chile (Facultad de Economía y Negocios de la Universidad de Chile). At this forum, Angelo Sartori, Verra’s director, regional engagement, will offer training for stakeholders who are developing, or plan to develop, projects in Verra’s VCS Program. Verra is also planning to hold sessions for potential validation/verification bodies (VVBs) to expand the pool of auditors in Chile who can conduct the independent third-party audits of carbon projects mandated by both the VCS Program and Chilean regulation.

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Verra is a global leader helping to tackle the world’s most intractable environmental and social challenges. As a mission-driven nonprofit organization, Verra is committed to helping reduce greenhouse gas emissions, improve livelihoods, and protect natural resources by working with the private and public sectors. We support climate action and sustainable development with standards programs and tools that credibly, transparently, and robustly assess environmental and social impacts and enable funding for sustaining and scaling up projects that verifiably deliver these benefits.