Chile’s Ministry of Finance updates climate finance strategy

Following the update of Chile’s NDC in 2020, which seeks to align international climate commitments with national guidelines in a more ambitious way than its past version, Chile is launching an update of its Financial Strategy for Climate Change (EFCC) that was published in 2019. The updated EFCC will incorporate a periodic analysis of public spending on climate change, the creation of an institutional framework to coordinate Chile’s relationship with the Green Climate Fund and the design of financial instruments that could be used for adaptation and technology transfer.

The updated document reports on the review exercise from the first publication in 2019 to January 2022. The document compiles in detail the state of progress of the targets committed to in the first EFCC, integrating the work of all state portfolios that have contributed to climate action.

It is organised into three new axes:

• AXIS 1: Greening the system.

• Axis 2: Promoting green finance.

• AXIS 3: Strengthening the competitiveness of the greening system.

Based on these three strengthened axes and in synchrony with the progress made, a new framework for action is proposed to continue driving and aligning financial flows towards climate action. These three new axes work collaboratively to achieve an effective transition to cleaner and more resilient economic growth.