IDB grants credit to Chile to help decarbonization process

The Inter-American Development Bank (IDB) approved a 50 million dollar loan for Chile with the aim of accelerating decarbonization in the Andean country and supporting the national strategy of producing green hydrogen by 2030.

Chile plans to phase out the coal plants, which in 2019 generated 36.7 % of energy and were responsible for 25 % of greenhouse gas emissions. The country’s goal is to reach carbon neutrality by 2050.

The program seeks to improve the regulatory framework of the energy sector through improvements in the regulation of the distribution market, encourage citizen participation in the use of clean energy and promote the participation of more women in the sector.

The initiative will also strengthen the adoption of policies and measures to advance the contribution determined at the national level, to promote sustainable development. Likewise, it will encourage the penetration of large-scale renewables into the energy matrix and advances with the long-term expansion plan.

Also, the action will promote electromobility through the energy efficiency law, with a view to making urban public transport completely electric by 2040. Additionally, the program will contribute to enabling and making viable the incorporation of new renewable energy sources and energy vectors, like green hydrogen.

This is the first operation in a series of policy support, consisting of two separate loans.

K. Tovar

Source: dpa