Poverty in Chile increased from 13.7% in 2015 to 14.2% in 2020, below the Latin America and the Caribbean (LAC) average of 26.3%, partly owing to the impact of the COVID-19 pandemic. Extreme poverty increased in that period from 1.8% to 4.5%, below the LAC average (8.7%). The population living in totally informal households decreased from 23.5% in 2009 to 18.2% in 2017, compared to the LAC average 36.3% in 2018. Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 6.0 tonnes of carbon dioxide equivalent (t CO2e), lower than the averages for LAC (6.3) and countries belonging to the Organisation for Economic Co-operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 98.6%, higher than 95.4% for LAC and 61% for the OECD. The marine protected area of Chile accounted for 41.3% of its territorial waters in 2021, compared to 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 1.4% of gross domestic product (GDP) in 2020, above LAC (1.0%) and below the OECD (2.1%). Total tax revenues as a percentage of GDP (19.3%) remain lower than the averages for LAC (21.9%) and the OECD (33.5%).
Latin American Economic Outlook 2022
Chile
1. Recent trends
2. Long-term development policies for a green transition
Chile has committed to adopting greener policies in various sectors, primarily energy as it accounts for 77% of total GHG emissions. In 2021, Chile established the Long-Term Climate Strategy, which lays the foundations for environmental actions in the coming years.
With respect to Chile’s mitigation measures, the National Strategy of Green Hydrogen aims to develop 5 GW of capacity for electrolysis in 2025, produce the cheapest green hydrogen in the world and be among the three main exporters by 2040. Law No. 20.571 enables households with solar systems to generate their own energy, with surplus sold in the energy market. The Residential Ministry grants subsidies to vulnerable households to implement renewable energy systems. In the transport sector, the National Strategies of Sustainable Mobility and Electro Mobility aim to improve the use of energy resources, time, and road and urban space. In 2021, new electric and low-emission buses were introduced in the public transport system, and the Mi Taxi Eléctrico programme was launched. As a circular economy initiative, the National Strategy of Organic Wastes 2040 aims to increase the valorisation rate of organic wastes at the municipal level from 1% to 66%. To increase accountability, the Huella Chile programme was created to promote the quantification and reporting of corporate GHG emissions. Among Chile’s adaptation policies, the Adaptation Plan for Fishery and Aquaculture adopts a systemic approach to increase the resilience of marine ecosystems and coastal communities.
Regarding international partnerships, within the region, as a member of the Pacific Alliance, Chile participates in the Working Group of Finance and Sustainable Development, which organises regional co-operation for the adoption of environmental, social and governance criteria. Beyond LAC, Chile is part of MinSus, a programme for the sustainable management of mineral resources, in partnership with the Economic Commission for Latin America and the Caribbean (ECLAC) and the German Agency for Economic Cooperation (GIZ). The National Sustainable Mobility Strategy, which sets the vision for mobility and urban planning in 2050, was developed with aids from EUROCLIMA+, the GIZ, and the French Development Agency (AFD). A National Preparation Committee for Green Taxonomy was created in co-operation with the Inter-American Development Bank (IDB) and the Climate Bonds Initiative.
Regarding green finance, between 2019 and 2022, Chile presented its frameworks for green, social, and sustainable (GSS) bonds, which are linked to key performance indicators. Since 2020, a fiscal framework is being designed by the Finance Ministry, with assistance from the Nationally Determined Contributions (NDC) Support Programme of the United Nations Development Programme (UNDP), to measure the effectiveness of public and private green investments. In 2019, Chile was the first country in the region to issue green bonds; in 2022, it was first in the world to issue bonds linked to sustainability, which currently constitute 28.7% of the public debt. The Mesa Público-Privada de Finanzas Verdes initiative co-ordinates the public and private sectors for capacity building towards climate change.
Key indicators – Chile
|
|
Chile |
LAC |
OECD |
|||
|---|---|---|---|---|---|---|
|
Social |
|
|
|
|||
|
|
2015 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
Extreme poverty |
1.8 |
4.5 |
8.1 |
8.7 |
N/A |
N/A |
|
Poverty |
13.7 |
14.2 |
25.9 |
26.3 |
N/A |
N/A |
|
Share of Internet users (% of population) |
83.6 |
88.3 |
53.7 |
68.1 |
81.8 |
88.0 |
|
|
2015 |
2020 |
2016 |
2020 |
2016 |
2019 |
|
Gini index |
44.4 |
44.9 |
46.3 |
45.3 |
34.9 |
34.2 |
|
|
2009 |
2017 |
2009 |
2018 |
2009 |
2018 |
|
Share of total population in informal households (%) |
23.5 |
18.2 |
43.4 |
36.3 |
N/A |
N/A |
|
Share of total population in informal households, upper-income quintile (%) |
20.0 |
9.4 |
24.5 |
13.6 |
N/A |
N/A |
|
Share of total population in informal households, lower-income quintile (%) |
32.8 |
34.9 |
70.4 |
72.0 |
N/A |
N/A |
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
Health expenditure (% of GDP) |
8.5 |
9.3 |
6.5 |
6.8 |
8.7 |
8.8 |
|
SIGI index |
N/A |
36.1 |
N/A |
25.4 |
N/A |
17.5 |
|
|
2015 |
2018 |
2015 |
2018 |
2015 |
2018 |
|
PISA score in science |
447 |
444 |
411 |
407 |
489 |
487 |
|
Productivity and innovation |
|
|
|
|
|
|
|
|
2016 |
2021 |
2016 |
2021 |
2016 |
2021 |
|
Labour productivity (% of the United States) |
42.9 |
46.5 |
29.0 |
26.6 |
69.9 |
67.2 |
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
High-tech exports (% of manufactured exports) |
8.5 |
15.8 |
8.4 |
7.2 |
16.5 |
16.2 |
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
R&D expenditures (% of GDP) |
0.4 |
0.3 |
0.3 |
0.4 |
1.8 |
2.0 |
|
Citizens’ perceptions and institutions |
|
|
|
|
|
|
|
|
2016 |
2020 |
2016 |
2021 |
2016 |
2021 |
|
Share of population satisfied with efforts to preserve the environment (%) |
31.1 |
23.5 |
46.2 |
42.0 |
55.3 |
51.2 |
|
Share of population with confidence in national government (%) |
20.4 |
16.2 |
34.2 |
39.4 |
40.3 |
46.3 |
|
Share of population that thinks corruption is widespread throughout government (%) |
82.5 |
80.4 |
74.5 |
70.0 |
59.0 |
54.9 |
|
Share of population satisfied with the education system (%) |
46.0 |
41.8 |
64.9 |
54.3 |
67.0 |
66.8 |
|
Share of urban population satisfied with the availability of quality health care (%) |
35.5 |
33.4 |
49.2 |
48.9 |
68.2 |
69.5 |
|
Environment and the green transition |
|
|
|
|
|
|
|
|
2004-19 |
|
2004-19 |
|
2004-19 |
|
|
Loss of natural and semi-natural vegetated land (%) |
0.8 |
|
1.5 |
|
1.3 |
|
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
GHG emissions per capita excluding LUCF (t CO2e) |
5.9 |
6.0 |
6.3 |
6.3 |
9.6 |
9.1 |
|
Air pollution – exposure to PM2.5 (annual average exposure to more than 10 µg/m3, % of population) |
98.9 |
98.6 |
95.5 |
95.4 |
61.3 |
61.0 |
|
|
2016 |
2020 |
2016 |
2019 |
2016 |
2020 |
|
Contribution of renewables to total primary energy supply (%) |
27.1 |
29.7 |
34.2 |
33.4 |
19.7 |
22.9 |
|
|
2016 |
2021 |
2016 |
2021 |
2016 |
2021 |
|
Marine protected areas (% of territorial waters) |
12.6 |
41.3 |
2.5 |
7.3 |
16.5 |
18.6 |
|
Fiscal position |
|
|
|
|
|
|
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
Environmentally related tax revenue (% of GDP) |
1.2 |
1.4 |
1.1 |
1.0 |
2.4 |
2.1 |
|
Total tax revenues (% of GDP) |
20.1 |
19.3 |
22.2 |
21.9 |
33.6 |
33.5 |
|
Share of VAT (% GDP) |
8.3 |
8.0 |
5.8 |
5.6 |
6.6 |
6.7 |
|
Share of PIT (% GDP) |
1.8 |
2.0 |
2.1 |
2.2 |
7.8 |
8.3 |
|
Share of CIT (% of GDP) |
4.2 |
4.7 |
3.3 |
3.4 |
2.9 |
2.7 |
|
Perception of tax evasion (%) |
N/A |
14.1 |
N/A |
27.3 |
N/A |
N/A |
|
Debt service (% of total tax revenue) |
1.4 |
2.7 |
11.3 |
13.0 |
5.6 |
5.2 |
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2019 |
|
Social expenditure (% of GDP) |
16.1 |
20.2 |
11.5 |
13.6 |
20.0 |
19.9 |
Note: See the Reader’s Guide for definitions and sources.