Summary
Details
- Chile
Participation in Article 6 carbon-market activity is not mandatory for every company operating in Chile.
However, once an organization chooses to generate, authorize or internationally transfer mitigation outcomes through the Article 6 framework, the applicable requirements of Supreme Decree 32 are mandatory.
These can include:
Activity authorization.
Entity authorization.
Approved methodologies.
Monitoring.
Verification.
Environmental and social integrity requirements.
Government authorization of transfers.
Corresponding adjustments.
Registry and accounting requirements.
A company is generally not required simply by Supreme Decree 32 to develop an Article 6 mitigation project.
Participation in the carbon-market mechanism is therefore voluntary at entry.
Deep dive
- What’s Required
- 1. Determine whether the mitigation activity falls within Article 6
- 2. Obtain authorization for mitigation activities
- 3. Demonstrate environmental integrity
- 4. Use validated methodologies
- 5. Obtain authorization for participating entities
- 6. Monitor and report mitigation outcomes
- 7. Independent verification
- 8. Obtain authorization for international transfer
- 9. Apply corresponding adjustments
- 10. Homologation of existing certificates
- 11. Article 6.4 mechanism
- Important Deadlines
- Current Status
- Penalties for Non-Compliance
- Examples of Known Violations / Failure Modes
- Resources
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What’s Required
1. Determine whether the mitigation activity falls within Article 6
The regulation applies to emission reduction or removal certificates generated by mitigation activities or programs implemented in Chile under international cooperation mechanisms established by Article 6 of the Paris Agreement.
It also covers certificates generated outside Chile and transferred to Chile through an applicable implementation agreement.
2. Obtain authorization for mitigation activities
Projects seeking to generate mitigation outcomes that can be transferred or used under Article 6 must follow the national authorization procedure established by the Ministry of the Environment.
Applications must demonstrate compliance with applicable technical, environmental, accounting and social requirements.
3. Demonstrate environmental integrity
Mitigation activities must meet criteria intended to ensure that credited reductions or removals are credible.
Technical guidance issued under the Decree addresses areas including:
Regulatory additionality.
Financial additionality.
Baseline robustness.
Monitoring and reporting.
Permanence risks.
Consistency with Chile’s official emissions data.
Avoidance of double counting.
4. Use validated methodologies
Mitigation activities must use methodologies accepted under the Chilean Article 6 framework.
Chile issued specific technical guidance in 2026 governing evaluation of methodologies for:
Baseline setting.
Emission reduction calculations.
Removals.
Monitoring.
Reporting.
Verification.
5. Obtain authorization for participating entities
Entities participating in Article 6 activities are subject to national authorization procedures.
Chile issued additional technical guidance in March 2026 covering authorization of:
Participating entities.
Operational entities involved in validation and verification.
6. Monitor and report mitigation outcomes
Projects must establish systems capable of demonstrating the quantity of emission reductions or removals achieved.
Monitoring should follow the approved methodology and provide sufficient evidence for independent verification.
7. Independent verification
Mitigation outcomes must be verified by an operational entity authorized under the Chilean framework.
Verification provides assurance that reductions or removals:
Occurred.
Were calculated correctly.
Follow the approved methodology.
Meet applicable integrity requirements.
8. Obtain authorization for international transfer
Mitigation outcomes cannot automatically be transferred internationally simply because they have been generated or certified.
Authorization from the Chilean government is required where Article 6 rules and the applicable implementation agreement require it.
This is particularly relevant for Internationally Transferred Mitigation Outcomes, or ITMOs.
9. Apply corresponding adjustments
Where a mitigation outcome is transferred internationally for use toward another country’s NDC or another recognized international mitigation purpose, Chile may need to apply a corresponding adjustment.
The adjustment prevents the same reduction from being counted toward both:
Chile’s climate target.
The acquiring country’s target or authorized international use.
10. Homologation of existing certificates
The regulation provides a pathway for certain certificates generated under recognized certification programs to be submitted for homologation.
Applicants can be required to provide:
Evidence of certification.
Verification reports from an authorized operational entity.
Technical documentation.
The Ministry generally has a maximum of 20 business days to decide a standalone homologation request.
Where homologation and mitigation-activity authorization are submitted together, the combined request can be resolved within 90 business days.
11. Article 6.4 mechanism
The Decree also regulates Chile’s domestic implementation of the Article 6.4 mechanism.
The Ministry of the Environment acts as Chile’s Designated National Authority for Article 6.4 and is responsible for national implementation of relevant decisions adopted under the Paris Agreement.
Important Deadlines
October 10, 2024: Supreme Decree No. 32 promulgated.
December 13, 2025: Decree published in Chile’s Official Gazette and entered into the legal framework.
March 11, 2026: Technical guidance on authorization of participating and operational entities published.
March 2026: Chile issued additional technical guidance covering methodology validation and environmental and social integrity.
2026 onward: Article 6 activities are processed under the new national regulatory structure.
Ongoing: Projects must follow monitoring, reporting, verification and authorization requirements throughout their crediting and transfer activities.
Current Status
Active and legally binding.
The regulation has been in effect since its publication on December 13, 2025 and is now supported by several technical resolutions and implementation guidelines issued during 2026.
Chile has also begun operationalizing Article 6 cooperation through bilateral arrangements, including cooperation with Switzerland. A 2026 Ministry resolution references implementation agreements and activities already authorized or favorably considered under those arrangements.
Penalties for Non-Compliance
Supreme Decree 32 is primarily structured around authorization and eligibility controls rather than a standalone schedule of fines.
The most immediate consequence of failing to satisfy its requirements is that:
A mitigation activity may not be authorized.
An entity may not be authorized to participate.
Certificates may fail to obtain homologation.
Mitigation outcomes may not receive authorization for international transfer.
Credits may be excluded from recognized Article 6 use.
Other legal consequences may arise under Chile’s Framework Law on Climate Change, environmental law or rules applicable to false or misleading information.
Examples of Known Violations / Failure Modes
Because the operational system is relatively new, these are primarily compliance failure modes rather than an established enforcement history.
Attempting to transfer mitigation outcomes without government authorization.
Failing to demonstrate additionality.
Using an unapproved methodology.
Inadequate monitoring of emission reductions.
Failure to obtain independent verification.
Using an unauthorized verification entity.
Double counting emission reductions.
Inconsistent data between project records and Chile’s national emissions information.
Inadequate management of permanence risks.
Failure to demonstrate environmental integrity.
Failure to satisfy social safeguards.
Submitting incomplete homologation documentation.
Claiming international use without the required corresponding adjustment.
Treating voluntary carbon-market certification as sufficient for Article 6 authorization.
Resources
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