lawyers ChileLawyers' officeLawyers' office ChileBrokering Law office

Environmental Law

New CO2 regulations in Chile

Chile is part of the United Nations Framework Convention on Climate Change (UNFCCC) that aims to stabilize greenhouse gas emissions, including CO2. Chile also signed the Kyoto Protocol, an addendum to the convention which establishes emission targets for different commitment periods. However, the Protocol does not impose specific laws or regulations that signing countries must adopt, leaving the way to meet the targets up to local regulation.

Regarding local regulations, we can distinguish between different categories:

Green tax

The new tax reform, contained in Law 20.780, includes a new tax imposed over a series of emissions, including carbon dioxide. This tax only applies to establishments with fixed stationary sources, conformed by turbines and boilers, that individually or as a group adds a thermal potency higher or equal to 50 thermic megawatts.

The tax is levied on emissions particulate material (PM), nitrogen oxides (NOx), sulfur dioxide (SO2) and carbon dioxide (CO2). The tax is levied on people or legal entities that use any fixed stationary source emitting such pollutants.

The tax levied on MP, SO2 and NOx emissions is equivalent to 0.1 by every ton emitted multiplied by the following formula:

Tii = CSCpci x Pobj

Tii = Tax levied on polluter “i” emitted in the location “j” in USD by ton

CSCpci = Social cost of pollution per capita of each polluter. The cost per capita for MP is USD 0.9, for NOx and SO2 is USD 0.025.

Pobj = The location’s population

If the fixed stationary source is located in an area that has been already declared as saturated area or latent area with NOx, MP and/ or SO2 contaminants, then and additional tax is levied.

The Chilean Internal Revenue System (SII) calculates each year the amount of taxes due. The Environmental Superintendence during March of each year provides the information needed to calculate the taxes

There exist a series of Decrees that regulate the functioning and collection of this tax. Furthermore, the sources subject to this tax must register on the RETC, according to what is stipulated on Decree 1/2013, Regulation of the RETC.

CO2 Emission Standards 

A number of emission standards involve carbon dioxide, which apply to specific emission sources:

As was explained, the majority of existing regulations refer to emissions or specific situations, there is not an ample or specific rule that control for CO2. This can change in the future, considering the focus on global warming and the objectives of the Kyoto Protocol. Besides those new regulations, there is no other new regulation in Chile in regard to CO2.

Last modified: 17/02/2020

Tax Law

Environmental Law

Debt Collection


Immigration Law

Industry's regulation

Labour Law