Chilean Government Takes Step Forward in Climate Mitigation with Unilateral Renewable Energy NAMA

A major victory for mitigating climate change worldwide, Chile recently proposed Price Stabilization Fund (PSF) can serve as an example of how developing countries are pursuing ambitious unilateral NAMAs in additional to supported NAMAs. With financial support from the Chilean government, the PSF is not only ambitious but transformational in its ability to reduce greenhouse gas emissions, leverage investment within the private sector and increase public health benefits.

Chile’s power sector is on a trajectory to add between 8,000 and 10,000 megawatts of new capacity by 2020, from the current 16,000. If all of this new demand was met through additional coal-powered generation, carbon dioxide emissions could increase by 32 to 40 million tons over current levels.

Preparing for this increased demand, Chile took several actions over the past few years to promote renewable energy deployment. A Renewable Portfolio Standard Law, which requires 10 percent of energy sold to come from renewable sources by 2024 is now in place, along wi