Chile’s Environment and Energy Ministries sign agreement with Switzerland to cooperate under Article 6 of the Paris Agreement

Energy and Mining Minister Juan Carlos Jobet, Environment Minister Javier Naranjo, and the head of Switzerland’s Federal Department of the Environment, Transport, Energy and Communications, Simonetta Sommaruga, signed a cooperation agreement this morning to implement pilot programs and exchange experiences under Article 6 of the Paris Agreement. 

Minister Jobet stated, “through this agreement, we are recognizing the importance of early actions and the fundamental role that local mitigation can play in the fight against climate change. Decarbonizing the energy matrix and benefiting local communities are the essence of this initiative, through which we will seek to make progress towards our carbon neutrality goals, promoting local action and developing mechanisms to avoid double counting in the reduction of emissions.” 

Minister Naranjo indicated that “Chile recognizes that Article 6 of the Paris Agreement is a mechanism that can allow countries to implement mitigating actions in a cost-effective way. It can also speed up the implementation of new technologies through voluntary collaboration with other parties using international transfer of mitigation outcomes, promoting emissions mitigation in municipalities, like we are doing today. Furthermore, it is the only article that enables and/or promotes the participation of the private sector, which is key to increasing ambition.” 

Speaking from Switzerland, Federal Counsellor Simonetta Sommaruga stated that “cooperation is at the heart of the Paris Agreement, coupled with the highest possible ambition for climate action at the national level. Chile and Switzerland are jointly shaping cooperative approaches to the Paris Agreement. We are also intensifying our efforts to tackle climate change and strengthen our bilateral ties.” 

This agreement will bring benefits for both countries. For example, Chile will be able to benefit from Switzerland’s experience and knowledge of Article 6 pilot programs, in order to develop energy projects in rural areas and build capacity at the community and national levels, while Switzerland will be able to account for reductions within the framework of its commitment under the Paris Agreement. 

Article 6 allows countries to apply their nationally determined contributions (NDC) cost-effectively and in collaboration with other parties, either through the transfer of mitigation outcomes or emission reduction certificates to create a global carbon market. It also allows the direct transfer of economic resources to promote bilateral and multilateral cooperation. 

Swiss experience 

Switzerland has had a long tradition of cooperation with Chile on environmental issues dating back to the 1960s. Over the last decade, cooperation has mainly taken place in the areas of energy efficiency (energy commune and energy inclusion program), corporate water management (SuizAgua – El Agua Nos Une) and atmospheric decontamination (Bosques Andinos and CALAC+). 

Since 2019, Switzerland and Chile, via their respective Environment and Energy Ministries, have been discussing a possible cooperation agreement under Article 6 of the Paris Agreement, in order to clarify the conditions and authorizations necessary for the transfer of carbon certificates (International Transfer of Mitigation Outcomes, ITMOs).  

This dialogue continued during COP25 in Madrid and again in 2020 as part of the Article 6 Working Group coordinated by the Energy Ministry. Representatives from Chile and Switzerland discussed possible issues to include in a cooperation agreement, such as credit authorization, monitoring, verification and issuance, as well as the transfer of units and the application of corresponding settings (to avoid double counting). 

The signing of the cooperation agreement consolidates the work carried out and sets a precedent for future collaborative work between the two nations.