[vc_row][vc_column][vc_column_text css=””]After years of public policy and collaborative programs, Chile has positioned itself as a regional leader in sustainable investments, thanks to its commitment to the circular economy and renewable energy.
The combination of innovative public policies, ambitious goals, and the active participation of the country’s main industries has created an extremely favorable environment for sustainable investments that benefit both the country and the region.
Public Policies and Goals to Drive Sustainable Investments
A fundamental part of Chile’s green landscape is its firm commitment to environmental protection. Its policies are aligned with the United Nations 2030 Agenda, which also supports strategies to implement the Sustainable Development Goals (SDGs) in the country. In 2021, the Ministry of the Environment introduced the “Roadmap for a Circular Chile by 2040,” a vision for a regenerative circular economy that will “propel the country toward sustainable, fair, and participatory development.”
These efforts are already bearing fruit. According to a study by the Economic Context Observatory of Diego Portales University (OCEC UDP), there were about 1,534,931 jobs in 2022 that contribute to preserving and restoring the environment, equivalent to 16.7% of the total jobs in the country. This figure surpasses jobs in polluting industries, and the trend is expected to continue.
Chile has implemented and commited to various initiatives to promote the circular economy:
- National Circular Economy Roadmap 2020-2040: Launched in 2021 by the Ministry of the Environment (MMA), it sets goals such as creating 180,000 new green jobs by 2040, reducing per capita household waste generation by 25%, and reaching a recycling rate of 65% by that year.
- Extended Producer Responsibility (EPR) Law: This law obligates producers to manage their product waste, encouraging recycling and reuse and incentivizing a shift toward more sustainable production.
- Circular Territory Program: Led by the MMA and the Production Development Corporation (Corfo), it seeks to accelerate the transition to a circular economy through concrete actions in productive development, innovation, and the coordination of local production chains.
- Achieving Carbon Neutrality by 2050: This involves significantly reducing emissions in sectors like energy, transport, industry, and agriculture. Its strategies include shutting down coal-fired power plants, promoting electromobility, and reforesting forests and other carbon-capturing ecosystems.
- Renewable Energy Matrix: The goal is to reach 70% of energy generation from renewable sources by 2030.
Key Industries in Chile: Construction, Mining, and Renewable Energy for Sustainable Investments
The country’s most important industries are already embracing a future where environmental care is fundamental to their operations, ranging from using clean energy sources to simpler actions like transporting employees in 100% electric buses.
Construction
At the end of 2024, the Construction Circular Economy Network was announced. This public-private alliance is composed of the Construye2025 program from the Production Development Corporation (Corfo), the Government of Santiago, and the CDT of the Chilean Chamber of Construction (CChC). Its objective is to “lay the foundation for a structural transformation in the construction industry, with positive impacts on the environment, the economy, and the productivity of the sector.” Through waste valorization, productive chain integration, and industrial symbiosis, the goal is to generate green investments and promote sustainable purchasing. The next step is to replicate the model across the country.
Mining
Codelco, the world’s largest copper producer, leads sustainable initiatives, including the implementation of one of the largest electric transport fleets in the global mining industry, to transport its employees. It also collaborates with local companies to recycle or reuse materials, reducing its carbon footprint and promoting a circular economy within the mining sector.
Renewable Energy
Advances in this sector not only strengthen Chile’s energy independence but also position it as a leader in clean technology in the region. The country is currently a pioneer in Latin America in green hydrogen production, leveraging its vast availability of solar and wind energy. The National Green Hydrogen Strategy, adopted by President Boric’s government, anticipates that Chile’s renewable energy resources could supply 70 times the country’s current electricity generation capacity and produce up to 160 million tons (Mt) per year of clean hydrogen by 2050.
The country has also seen significant growth in the solar and wind energy sector. Chile has registered an increase of more than 1,300% in its solar capacity, taking advantage of the Atacama Desert, which has some of the highest levels of solar energy in the world.
Business Opportunities with Sustainable Investments
Chile’s focus on the circular economy and sustainability also brings with it various investment opportunities:
- Renewable Energy: With the goals set for 2030 and 2050, there is ample scope for investments in solar, wind, and geothermal energy projects.
- Recycling and Waste Management Technologies: The implementation of the EPR Law and the Circular Economy Roadmap generates demand for innovative solutions in recycling and efficient waste management. The implementation of technological solutions for recycling in sectors like construction, mining, and forestry is an area with growth potential. Companies like SKC Circular are focused on distributing machinery for recycling in the country’s most important industries.
- Sustainable Construction: The adoption of circular economy practices in construction opens opportunities for companies that offer recycled materials, sustainable construction technologies, and energy efficiency solutions. Additionally, the development of “micro-cities” that allow residents to access services within a 15-minute walk or bike ride is on the rise. For example, the Spanish sustainable real estate development company, Santa Ana, plans to build more than 4,000 homes in Colombia, Panama, and Chile over the next seven years.
- Electric Mobility: The increase in electric vehicle sales and the expansion of charging infrastructure represent an attractive niche for investments in this sector.
With its fertile ground for sustainability, Chile is consolidating its position as a benchmark for sustainable investments. Would you like to know more about sustainable investment opportunities in Chile? Contact us and be a part of this green transformation.[/vc_column_text][vc_btn title=”Contact us and be a part of this green transformation” style=”custom” custom_background=”#39C57D” custom_text=”#FFFFFF” css_animation=”fadeInDown” css=”” link=”url:https%3A%2F%2Fwww.sherlockcomms.com%2Fcontact%2F|target:_blank”][/vc_column][/vc_row]