Data and Insights: Chile

VCS Quarterly Update

ISSUE #2 - Q4/2020
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In 2020, Chile made significant progress in design and implementation of carbon pricing instruments, which are intended to help the country fulfil its Nationally Determined Contributions in the context of the Paris Agreement. Among these mechanisms is the design of a national carbon tax with a possible offset provision which would generate demand for carbon credits from domestic projects. 

Despite a slowdown in new projects and issuances likely a result of COVID-19, there are strong signals the market is starting to rebound. 

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Main Takeaways

2020 VCU issuances lower than in 2018 and 2019, but Q4 sees this trend beginning to change

While overall VCU issuances in 2020 were lower than in the previous years, there are signals that this trend has started to reverse itself. Q4/2020 saw an almost seven-fold increase in issuances (22,177 VCUs) compared to Q3 (3,199 VCUs). 

All VCUs issued in Q3 had an immediate impact on climate mitigation

All VCUs issued from Chilean projects in Q4/2020 were also retired (just as in Q3), having an immediate impact on climate mitigation.

While projects primarily come from the energy sector, AFOLU projects issue a relatively higher number of VCUs

While most VCS projects are in the energy sector (20 projects) and only 3 projects are in the AFOLU sector, AFOLU projects are performing strongly, having issued 34% of VCUs from Chilean projects in Q4 of 2020.

VCS Data and Insights: Chile - Q4/2020
PROJECTS
This chart includes cumulative data about VCS projects in Chile.
Project Total
Registration Requested 1
Registered 24
Project Types
Agriculture Forestry and Other Land Use
Energy
Waste
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

550,879,330
VCUs Globally (& Equivalent)
119,013,936
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 in 2017
**as of 31 December, 2020
VCU Issuances by Project Type
AFOLU*
Energy
Waste
Project Type VCUs
AFOLU* 523,622
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.
867,165 VCUs
187,345
cars taken off the road
for a year