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COVID-19 overshadowed Chile’s economy in the early part of 2021, and historically, the domestic carbon market reaches a low point at the start of the year. Despite these factors, however, 26,000 VCUs were issued, putting total domestic issuances on track in 2021 to exceed 2020 levels.
In addition, carbon pricing instruments are gaining momentum in the country’s legislative system.
Main Takeaways
ARR dominance
All VCUs issued in Q1/2021 came from Afforestation, Reforestation and Revegetation (ARR) projects.
Retirements increase drastically
In Q1/2021, 17,072 VCUs were retired, compared to just 3,199 in Q4/2020, a 530% increase.
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El comienzo del 2021 no ha sido bueno para el mercado voluntario de carbono en Chile, si hablamos de emisiones de VCU, las cuales no superaron las 26.000 toneladas en el primer trimestre. Esta situación puede ser explicada por dos situaciones: 1. el impacto económico que ha generado el COVID-19. 2. Al final del año, normalmente hay más demanda de créditos para el mercado voluntario, buscando la compensación de las emisiones anuales.
Sin embargo, se mantiene la dinámica legislativa del país, donde se vienen reforzando los mecanismos en instrumentos de fijación de precios al carbono y se espera que el mercado responda a esta dinámica en el segundo semestre del año. Una muestra de esta dinámica, se puede evidenciar en los datos de retiros de VCU.
Principales hallazgos
El sector AFOLU sigue siendo el sector con mayor emisión de VCU
De las VCU emitidas en el primer trimestre (26.000), el 100% proviene de proyectos ARR, mostrando la relevancia de los proyectos de este sector para los compradores.
Se evidencia un aumento en los retiros de VCUs
Al comparar el último trimestre del 2020 con el primero del 2021, podemos evidenciar el aumento de los retiros en el país. Se retiraron 13783 VCU más que en el último trimestre del 2020.

VCS Data and Insights: Chile - Q1/2021
PROJECTS
This chart includes cumulative data about VCS projects in Chile.
Project |
Total |
Registration Requested |
0 |
Rejected by Administrator |
1 |
Registered |
24 |
Project Types
Agriculture Forestry and Other Land Use
Project |
Total |
Agriculture Forestry and Other Land Use |
3 |
Energy |
20 |
Waste |
2 |
*Agriculture, Forestry, and Land Use
5,311,662 Expected Annual Reductions from All Projects in Chile
Summary Totals to Date
VCU Issuances* (Total to Date)
*One VCU represents one tonne of carbon dioxide equivalent that was removed from the atmosphere or not emitted.
Greenhouse gas equivalencies for emission reductions and removals were calculated using the EPA Greenhouse Gas Equivalencies Calculator
613,230,612
VCUs Globally (& Equivalent)
132,484,530
cars taken off the road
for a year
1,538,339 VCUs from Projects in Chile
VCU Issuances by Year
*The Chilean carbon tax was implemented in 2017
**as of 31 March 2021
VCU Issuances by Project Type
Project Type |
VCUs |
AFOLU* |
549,622 |
Energy |
985,801 |
Waste |
28,916 |
*Agriculture, Forestry, and Land Use
Retirements
VCUs that have been purchased and taken off the market forever; a retired VCU represents a carbon offset.
884,237 VCUs
191,034
cars taken off the road
for a year
Latest Trends
Issuances for Q4 of 2020
22,177
VCUs
Issuances for Q1 of 2021**
26,000
VCUs
Retirements for Q4 2020
3,199
VCUs
Retirements for Q1 2021**
17,072
VCUs
** As of 31 March 2021