Chile Launches Pilot for First National Carbon Offset System

Chile is taking a major step toward developing its own carbon credit certification system, with a new pilot project focused on cutting local emissions and improving air quality. The initiative will test a national methodology under the country’s carbon tax scheme, marking a shift away from reliance on foreign offset standards.

View of Biobío, Chile, with lush hills, flowing rivers, and native flora beneath a clear sky. AI generated picture.

The pilot, developed in partnership with energy firm Enel X, aims to replace wood-burning heaters with energy-efficient split air conditioners in homes across the Biobío region—an area officially declared saturated with air pollutants. Pending approval from Chile’s Ministry of Environment (MMA), installations are slated to begin in early 2026.

‘Until now, the SCE has operated by recognising certificates from external [carbon] certification programs’, said the MMA. ‘However, in the case of local pollutants, the Ministry of the Environment has developed its own certification program, given that there are no recognised initiatives for this purpose to date.’

Chile’s carbon tax currently targets companies emitting over 25,000 tonnes of CO₂ equivalent annually, applying a flat rate of $5 per tonne. To meet their obligations, businesses can submit offset credits from Chile-based projects issued after January 2020.

So far, only credits issued under standards like Colombia’s Biocarbon and Cercarbono, Verra in the US, Switzerland’s Gold Standard, and the UN’s Clean Development Mechanism have been accepted. The new pilot, however, could pave the way for locally certified offsets to enter the system.

The timing is significant: in 2024, Chilean companies used approximately 4.4 million tonnes of CO₂-equivalent credits—worth over $22 million—to comply with the tax, up sharply from just 260,000 tonnes the year before.

By linking carbon compliance with local public health improvements, the Biobío initiative highlights how national offset strategies can serve dual environmental and social purposes. If successful, the project could become a model for other countries seeking to integrate domestic policy goals with global climate commitments.