WASHINGTON, D.C. – CCAP will be supporting ImplementaSur and the Ministry of Finance in Chile on the development and implementation of a sustainable finance taxonomy in Chile. The green taxonomy in Chile will help the country align investments towards environmentally sustainable activities, serving as an established classification system.
Taxonomies allow us to objectively determine which activities, projects and investments are considered environmentally sustainable. Its implementation provides a common language that facilitates comparability between different activities and helps to avoid greenwashing. Check out this blog to better understand what a sustainable finance taxonomy is.
In 2021, Chile prepared its “Roadmap for a Taxonomy,” which provided 10 recommendations for its taxonomy development. While following the Roadmap and taking into account the lessons learned and best practices from other jurisdictions, a Preparatory Committee for the Development of a Classification System for Environmentally Sustainable Economic Activities was convened in Chile.
The Structural Elements for the Taxonomy include:
Environmental objectives
Activities and economic sectors to be included in the Taxonomy, along with their classification
Minimum rules that determine the conditions or requirements for an activity to be considered environmentally sustainable
Future governance for the development of required tools
Implementation framework.
ImplementaSur has created a repository for this project that outlines its details. Head to their website to learn more.
Learn More about Sustainable Finance Taxonomies:
Over the past two years, CCAP has been active in promoting the use of taxonomies, their trends and disseminating knowledge about their benefits and implementation around the globe. Check out our blog series on this topic.
Our Work in Taxonomies:
During the 2023 Latin America and Caribbean Climate Week in Panama, CCAP and the Climate Finance Group for Latin America and the Caribbean (GFLAC) launched the Observatory of Taxonomies in Latin America and the Caribbean (LAC). The Observatory seeks to encourage the design of sustainable finance taxonomies to be compatible at the international, regional and national levels, aligned with sustainable development and promoting regulated adoption based on environmental, social and climate safeguards.
Additionally, CCAP and GIZ recently published the policy brief, Towards a Common Pathway Across Sustainable Finance Taxonomies, which takes an in-depth look at taxonomies and provides a high-level overview of their relevance, key process principles and practical development steps. Prior to this, CCAP performed advisory work on a Climate Finance Tracking Taxonomy for the energy sector in Seychelles. Click here to learn more about our Climate Finance Program!
Stay Connected:
There are numerous ways to stay connected with CCAP. Follow us on Twitter @CCAPolicy and on Facebook & LinkedIn.
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CCAP’s mission is to support every step of climate action, from ambition to implementation. A recognized world leader in climate policy and action, CCAP creates innovative, replicable climate solutions, strengthens capacities, and promotes best practices across the local, national, and international levels to accelerate the transition to a net-zero, climate resilient future. CCAP was founded in 1985 and is based in Washington, DC.