Chile steps up Article 6 expansion as its three bilateral agreements near full implementation

Chilean officials and market participants told Carbon Pulse that the country plans to approve the carbon standards and methodologies eligible under its bilateral Article 6 agreement with Singapore ahead of COP31. Chile is also advancing project development under its agreements with Japan and Switzerland and is actively seeking new carbon trading partners.

The Singapore track builds on an Implementation Agreement signed on 7 April 2025, Singapore’s fifth such agreement. Both countries said at the time that details on the authorisation process and eligible crediting methodologies would follow later. The Chilean approval targeted before COP31 would fill that gap and open the channel to projects. Under the agreement, Singapore companies will be able to use authorised, correspondingly adjusted Chilean credits for up to 5% of their domestic carbon tax obligations. An amount equal to 5% of proceeds will go to climate adaptation in Chile.

Switzerland has so far been Chile’s main buyer, and the country has been working to get its Japan and Singapore agreements operating. The Swiss partnership has produced most of Chile’s authorised pipeline, including a commercial electric-vehicle programme authorised by both governments in April 2026. Chile has issued five letters of authorisation across energy and transport electrification and aims to double that number. Projects under its Article 6.2 agreements had unlocked about US$1.4 billion in investment by January 2026, and the Ministry of Environment recently projected around US$6 billion over the coming years.

Signals to watch

• Singapore channel opening: Methodology approval before COP31 would make Chile one of the first Latin American hosts able to supply Singapore’s carbon-tax offset demand and government procurement. Developers should get ready for Singapore’s application process as soon as the eligible standards are published.
• Buyer diversification reduces concentration risk: Chile’s flows so far depend heavily on Swiss procurement through KliK. Adding active Japanese (JCM) and Singaporean demand, plus any new partner, would lower offtake risk across the Chilean pipeline and should improve financing terms for project sponsors.
• New partner hunt: Chile is actively courting additional buyers. Candidates likely include Norway, which is increasing ITMO budgets, Sweden, South Korea and possibly corporate buyers. This puts Chile in competition with other advanced hosts such as Ghana, Thailand and Peru for limited sovereign demand.
• Methodology choices set the template: The standards and methodologies Chile approves for Singapore will show which crediting programmes and project types it treats as Article 6-grade. This will signal to developers which certifications to target and may shape approval criteria for future partners.
• COP31 as a showcase: Expect Chile to present its implementation record at COP31 as a model for host countries, alongside possible announcements of new partners or first Singapore-bound authorisations.

Sources:

• Argus – Singapore, Chile sign Article 6 carbon credit deal
• Carbon Pulse – Singapore, Chile sign Article 6 implementation agreement
• Carbon Pulse – Chile expects to deliver five new LoAs this year
• Carbon Pulse – Chile, Switzerland authorise commercial EVs programme
• Carbon Pulse – Chile’s approved Article 6.2 activities mobilise $1.4 bln