On November 14, 2024, Exempt Resolution No. 5959 of November 8, 2024, was published in the Official Gazette, approving the Draft Regulation for the greenhouse gas and short-lived climate pollutant emissions compensation system, pursuant to Article 15 of Law No. 21,455, the Framework Law on Climate Change.

This Draft Regulation is subject to public consultation, allowing individuals or legal entities to submit comments on its content within 23 business days, until December 17, 2024.

The Draft Regulation primarily covers the following:

Title I - General Provisions: Establishes the scope of the Regulation, definitions of technical and legal concepts, and baseline criteria for regulatory application.

Title II - Methodologies and External Certification Programs: Regulates the validation of methodologies for emissions reduction or absorption and the recognition of external certification programs.

Title III - Emissions Reduction or Absorption Projects: Sets forth the process for approving emissions reduction or absorption projects, the registration of approved projects, and criteria for their modification.

Title IV - Emissions Reduction and Absorption Certificates: Establishes the conditions for issuing and registering emissions reduction certificates and the procedures for generating surplus certificates.

Title V - Emissions Compensation: Outlines the administrative procedure for requesting the use of emissions reduction or absorption certificates, or surplus certificates, to offset emission standards.

Title VI - Public Registry Systems: Defines the operation of project and certificate registries, of technical verification entities, and of facilities, emission sources, or their groupings.

Lastly, transitional provisions are established to address matters requiring progressive implementation.

For additional information on this matter, please contact: Javier Naranjo at jnaranjo@jdf.cl; Martín Esser at messer@jdf.cl; María Paz Valenzuela at mpvalenzuela@jdf.cl; and Javiera Rodríguez at jrodriguez@jdf.cl.