The principal aim of the OECD Environmental Performance Review (EPR) programme is to help member and selected partner countries improve their individual and collective performance in environmental management by:

Signs

Chile significantly raised its climate ambition with the enactment of the Framework Law on Climate Change (FLCC) in 2022. The law sets a binding national target to reach net zero by 2050. However, greenhouse gas (GHG) emissions rose significantly in 2010-19 and are not projected to peak before 2025. Ambitious actions to reduce GHG emissions are required. These include clarifying sectoral and regional plans, pursuing the plan to close all coal-fired plants by 2040 and boosting renewable energy generation. The transport and building sectors need more stringent climate targets to spur further investments in sustainable public transportation as well as electrification of vehicles and building heating systems.

The Assessment and Recommendations present the main findings of the OECD Environmental Performance Review of Chile. They identify 36 recommendations to help the country make further progress towards its environmental objectives and international commitments. The OECD Working Party on Environmental Performance discussed and approved the Assessment and Recommendations on 23 January 2024.

This chapter examines progress towards sustainable development in Chile. It examines how Chile has fared with key environmental targets related to climate change, air pollution, waste management and biodiversity. It assesses the environmental effectiveness and economic efficiency of the environmental policy mix, including regulatory and voluntary instruments; fiscal and economic instruments; and public and private investment in environment-related infrastructure. Finally, it examines the interaction between the environment and other policy areas, such as greening the system of taxes and charges, and investments that promote environmentally friendly and socially inclusive growth.

The management of water resources has important economic, environmental and social consequences for Chile. This chapter examines pressures and trends related to the country’s water resources, focusing on water quantity and quality, the impact of climate change, and the state of water and sanitation services. It subsequently analyses water strategies, river basin plans, and institutional arrangements. The chapter concludes with a discussion of policy instruments such as water allocation, water quality standards and regulations, data and information, economic instruments, and finance and investment for infrastructure. Throughout the chapter, good practices in other OECD member countries, such as Israel and Spain, are highlighted.