Chile projects around US$6 billion in Article 6-linked investment
By Article 6 Network
Chile’s Ministry of Environment estimates the country could attract around US$6 billion in investment through Article 6 of the Paris Agreement over the coming years. That would be roughly four times the investment its approved Article 6.2 activities had mobilised by early 2026. The projection strengthens Chile’s position as one of the most advanced host countries for ITMOs.
Chile’s Ministry of Environment has estimated that Article 6 cooperation could bring roughly US$6 billion of investment into the country over the coming years. The figure builds on an earlier baseline. In January 2026, officials and panellists at a Santiago event said projects under Chile’s Article 6.2 bilateral agreements had already unlocked about US$1.4 billion.
Chile has bilateral Article 6.2 agreements with Switzerland, Singapore and Japan. Switzerland is currently the main buyer, and Chile is still working to put its Japan and Singapore agreements into operation. The country has issued five letters of authorisation so far, covering projects from energy to transport electrification, and aims to double that number. Authorised activity includes a commercial electric-vehicle programme approved by both the Chilean and Swiss governments in April 2026, as well as a landfill project.
Chile has also taken an unusual stance on how much mitigation it keeps at home. It has negotiated to retain part of the mitigation outcomes from its Article 6 projects for its own NDC and sell the rest as ITMOs. Industry leaders such as IETA’s Dirk Forrister have called Chile one of the few workable models for implementing Article 6.
Signals to watch
- Projection versus pipeline: The US$6 billion figure is a ministry estimate, not committed capital. Investors should track how fast new LoAs are issued and how many ITMOs are actually issued, since these show whether the gap between the US$1.4 billion mobilised and the US$6 billion projected is closing.
- Buyer diversification: Chile’s flows today depend heavily on Switzerland. If Japan or Singapore starts buying, through JCM projects or Singapore’s carbon-tax and NDC tenders, the demand risk for Chilean projects falls considerably.
- Retention ratios: How much mitigation Chile keeps for its NDC directly shapes how many ITMOs a project can sell and what it earns. Developers should model project economics on the net exportable share, not on gross reductions.
- Sector signal: Authorised activities so far lean towards e-mobility, energy and waste. Chile’s priority-activity typology will show where future authorisations, and therefore capital, are likely to go.
- Benchmark value for governments: Chile shows other host countries that a clear legal framework, a national Article 6 committee and predictable LoA procedures can turn bilateral agreements into investment. Peer hosts in Latin America and elsewhere will use it as a reference point.
