Press Release

Chile: Ministry of Finance promoted meetings on the challenges of green finance within the framework of COP27

Bnamericas Published: Thursday, November 17, 2022

By Ministry of Finance of Chile
November 17, 2022

This is a machine translation of the original press release issued in Spanish

Sharm-el Sheikh, Egypt, November 2022.- A delegation from the Finance and International Affairs Coordination of the Ministry of Finance was at the Chilean pavilion at the twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), COP 27, which this year took place in the city of Sharm-el Sheikh, Egypt, to address the different financial challenges of our country regarding climate action. Thus, through six panels, all with the representation of Carola Moreno, coordinator of Finance and International Affairs of the Ministry of Finance, the different strategies and public policies on green finance issues were analyzed.

“Chile is very active in climate finance negotiations within the framework of the United Nations Framework Convention on Climate Change (UNFCCC), participating in the Finance Coordination of the Independent Association of Latin America and the Caribbean (AILAC). At COP 27, these issues have been particularly relevant, highlighting the negotiations on financing for Loss and Damage, and the new collective goal of climate financing from developed countries to developing countries. In the same way, the discussions on the financial mechanism of the Coalition (UNCCC) are relevant, which is essential to defend the interests of our region in terms of the amount and conditions of financing, both for mitigation and adaptation efforts”, explained Carola Moreno from Egypt.

"Chile's position is strengthened. Specifically, we laid out our vision at the Coalition Finance Ministers Meeting. In addition, a report was launched that describes the role of finance ministries in the fight against climate change and Chile is a case study," she added.

“Finally, the six events organized by the Ministry of Finance in the Chilean Pavilion make it possible to publicize the main areas of work of the portfolio, supported by top-level experts. The possibility of networking with government authorities and leaders in the field of green finance is a unique opportunity. A very special event is the protocol cooperation meeting between the Ministry of Finance, Corfo, IDB and the World Bank to start the support to develop a financing platform for Green Hydrogen projects”, Moreno commented.

The agenda

In the first panel, called "The role of banks in the fight against climate change", the challenge of the financial sector to face climate change and the support of private banks for this path were addressed. The president of BancoEstado, Jessica López; Franco Pizza,

director of Corporate Sustainability of Bancolombia Group; Lubomila Jordanova, co-founder and CEO of Plan A.Earth; and Gonzalo Muñoz, champion of high-level climate action at COP25.

Immediately after, the panel “Effective Government Strategies towards Finance Implementation of Nationally Determined Contributions” was held, which sought to address the challenge of green finance from the perspective of the use of planning tools, financial and political instruments, and monitoring systems by part of country governance. This activity was organized by the Ministry of Finance in conjunction with the World Resources Institute and was supported by the Fiji Ministry of Finance, NDC Partnership, and Corporate Leaders Group Chile. In this panel, Prelish Lal, in charge of green finance at the Fiji Ministry of Finance; Teresa Ruiz, executive director of Corporate Leaders Group Chile; Amanda McKee, NDC Partnership Director of Learning and Knowledge; Natalia Alayza, from the World Resources Institute; and Gaia Larsen, director of green finance access and deployment at the World Resources Institute.

The third space was entitled "How to measure and evaluate the efficiency and effectiveness of climate spending": Advances and challenges in developing countries" and sought to address the challenge that nations have to identify and measure public spending on climate change, with the objective to manage to develop a reliable metric on the resources that the State is allocating in this matter. With this, nations would be allowed to diagnose and move towards greater efficiency and effectiveness in the use of funds to combat the climate crisis. This panel has the United Nations Development Program (UNDP) as co-organizers. Participating as speakers were María Paz Gutiérrez, adviser to the Coordination of Finance and International Affairs of the Ministry of Finance; Susanne Olbrisch, climate change policy specialist at the United Nations Development Program (UNDP).

Green hydrogen and natural capital

Towards the end of the first week at COP27, the panel “Low-carbon investments to accelerate the energy transition” was developed, organized jointly with the Chilean Ministry of Energy, CORFO and H2 Chile. It was an instance with leaders who seek to promote the energy transition through investments aimed at low-carbon technology solutions in the energy sector. The Ministers of Energy, Diego Pardow (remotely); the Minister of Transportation and Telecommunications, Juan Carlos Muñoz; the Vice President of CORFO, José Miguel Benavente; Carola Moreno, from the Ministry of Finance; Demetrios Papathanasiou, Director of the World Bank's Global Energy and Extractives Practice; Graham Watkins, head of the Climate Change division of the Inter-American Development Bank (IDB); and Isabella Boese, director of studies at H2 Chile. At the end of this relevant instance, an agreement was signed to promote green hydrogen initiatives in Chile called "Green Hydrogen Facility Project to support a Green, Resilient and Inclusive Economic Development", between the Ministry of Finance, the World Bank, IDB and Corfo.

The COP 27 weekend did not stop. On Saturday there was a space entitled "Natural Capital: measurement, investment challenges and opportunities", organized together with the Central Bank of Chile (BCCh), where the challenge of incorporating natural capital in the development of financial instruments and the creation of markets that incorporate nature, its biodiversity and ecosystem services. Participating as panelists Rodrigo Arriagada, head of the environmental economic information division of the Ministry of the Environment of Chile; Gonzalo García, senior economist at the Central Bank of Chile; and Valerie Hickey, Global Director for Environment, Natural Resources and the Blue Economy (ENB) at the World Bank; in addition to the representative of the Ministry of Finance.

Finally, on Monday, November 14, the last panel organized by the Ministry of Finance was held in the Chilean pavilion. This time, in collaboration with the Inter-American Development Bank (IDB), different experts discussed the importance of addressing the current state and challenges associated with the issuance and market creation of thematic bonds in the panel "Thematic Sovereign Bonds as core financing instruments for sustainable development”. Here participated Daniel Fonseca, principal specialist in Financial Operations in the IDB's Connectivity, Markets and Finance Division; Timothée Jaulin, Head of ESG Development and Promotion at Amundi Asset Management; and Simon Zadek, from the Sovereign Debt Center linked to Sustainability.

About the COP

In the Chilean pavilion at the twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) COP 27, nearly 50 events were held to discuss climate change.

This is the second time that Chile has its own space in a COP event, located within the Blue Zone of COP27, the most important environmental conference of the year, with the assistance of around 25,000 government delegates, the private sector, banks multilaterals, civil society, and youth.

Likewise, the Chilean Pavilion sought to be the link between the Chilean delegation and the other Parties and Observers to the United Nations Framework Convention on Climate Change (UNFCCC) regarding climate action.

Chile has stood out for its commitment to sustainability and global decarbonization, aligning its actions to contribute to mitigation and adaptation to climate change. In this sense, Chile is promoting the so-called "turquoise agenda", which arises as our country's response to the so-called "triple crisis": climate crisis, loss of biodiversity and global pollution. Faced with these three dimensions, we propose an integrating perspective that seeks a coherent response based on an action that strengthens the connections and synergies between the different areas of action.

Thus, the Ministry of Finance joined a series of events that addressed multiple relevant issues in the face of climate change, which were intersectoral in nature.

More information via Gobierno de Chile.

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