Environment at a Glance: Chile
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The text of this country profile is complementary to and has benefited from the OECD Environmental Performance Reviews: Chile 2024. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Chile is a medium-sized country and an open export-oriented economy with abundant mineral resources. Except during the COVID-19 pandemic, the country has experienced a long period of strong economic growth, which has helped reduce poverty and improve the well-being of its population, even though inequality remains high.
While population density is relatively low, more than 80% of Chile’s population concentrates in urban areas. Chile’s distinct geography, with desert land in the north, mountainous terrain throughout the country and ice in the south, results in high demographic and economic concentrations.
Natural resources such as minerals, forestry and fisheries have been a key driver of growth. With around 45% of world copper reserves, Chile is the world’s main copper producer. The country is also the largest world producer of natural nitrate, iodine and lithium (it has virtually all of the world’s mineral nitrate deposits, 62% of world reserves of mineral iodine and 12% of the lithium reserves) and a major exporter of molybdenum, among other minerals.
Chile has a wide range of climate and vegetation zones. Many of its ecoregions are considered significant to global biodiversity. Central Chile, including the matorral (shrubland) and Valdivian temperate forest ecoregions, is considered one of the top biodiversity hotspots in the world.
Chile’s greenhouse gas (GHG) emissions rose significantly (+31%) in 2010-2022, with a temporary drop in 2020 due to the COVID-19 pandemic. This increase was mainly driven by carbon dioxide (CO2) emissions generated by fossil fuel combustion. In 2022, transport became the largest source of GHG emissions, accounting for 27% of the total (excluding Land use, land use change and forestry - LULUCF) and surpassing energy industries (26%). This resulted from a less carbon-intensive energy mix (shifting from coal, oil and gas to renewables) and a growing number of vehicles, driven by higher purchasing power and improved road infrastructure (Ambiente, 2024[1]). Land use, land use change and forestry (LULUCF) has consistently contributed to sequester carbon, with the exception of 2017, when Chile experienced devastating wildfires.
Although they remain well below the OECD averages, per person production-based (i.e. produced within the territory) and demand-based (or footprint, i.e. including emissions incorporated in imported goods) GHG emissions have been increasing since 1995, unlike most OECD countries. Demand-based emissions are higher than production-based ones, meaning that Chile is a net importer of GHG emissions embodied in its final demand (i.e. demand for goods and services by all residents).
The energy mix of Chile remains dominated by fossil fuels, representing 66.1% of total energy supply in 2025, albeit below the OECD average. The share of coal, peat and oil shale in total energy supply has fluctuated but generally decreased to 7% in 2025. The share of oil has remained relatively stable at 45%. The share of natural gas has also witnessed large fluctuations and was 14.1% in 2025.
Renewables represented 68.2% of electricity production and 33.9% of energy supply in 2025, amongst the highest shares in the OECD. Chile plans to phase-out more than 50% of coal-fired plants by 2025 and the remaining ones by 2040.
Air pollution remains a significant public health challenge, particularly in the northern and central regions, despite a general progress in reducing emissions of most major pollutants since 2016. Most of the efforts to abate SO2 have targeted stationary sources, mainly power stations (i.e. thermoelectric plants). The increase in these other pollutants is due to a combination of factors, including continued reliance on fossil fuels for electricity generation, carbon-based transportation and growing industrial activity.
Despite the implementation of Environmental Regulation Programmes since 2016, average concentrations of PM2.5 remain among the highest in the OECD and considerably above the 2021 WHO guideline of 5µg/m3. The number of critical air pollution episodes has declined but remain common, especially in southern regions, where wood burning is exacerbated by poverty, thermally inefficient housing and weak electricity accessibility.
Chile’s freshwater resources are unevenly distributed across the country, resulting in stark contrasts in terms of water availability and quality. The country’s distinct geography and climate variability across the territory add to the challenges for water management. Water scarcity is acute in the arid north, where most of the water-intensive mining activities occur. It is a major challenge in central Chile, where agricultural production and population centres are concentrated. Pressures on water resources are growing due to various factors: rising demand, pollution, and declining, more erratic and unpredictable supply due to the over-allocation of water resources, drought and climate change. The impact of climate change on the hydrological cycle and rising temperatures generates considerable uncertainty about future water availability and demand. Demand for groundwater exceeds sustainable levels of supply in most regions. (OECD, 2024[2]).
Chile has achieved close to universal access to safely managed drinking water and a relatively high share of access to safely managed sanitation services. Seventy percent of the resident population is connected to advanced treatment plants. However, nutrient removal in wastewater treatment plants is necessary to avoid excessive nutrient discharge into receiving water bodies. This is common practice in many OECD countries, but limited in Chile.
The quality of drinking water and limited coverage of sewerage and wastewater in rural systems are major issues. Many rural systems fail to meet quality standards. There have been no effective mechanisms, including reliable sources of financing and technical capacity, to ensure proper operation and maintenance. Technical capacity of community water organisations is limited.
While Chile generates less municipal waste per person than OECD countries, its solid waste management system faces significant challenges. Despite high waste collection services coverage, two major interconnected challenges persist: financial sustainability (one-third of municipalities do not have a substantial waste recovery budget, coupled with extensive sanitation fee exemptions and unclear tariffs) and behavioural change (waste separation and recycling). Waste recovery and recycling rates are expected to gradually increase as a result of the implementation of mandatory Extended Producer Responsibility schemes (OECD, 2024[2]). However, the country still landfills almost all of its municipal solid waste, one of the highest percentages among OECD countries.
Domestic material consumption (DMC) per person has increased since the early 2000, to a level much higher than the OECD average. This is due to the reliance of the Chilean economy on metals extraction and exports. DMC productivity has remained stable, while the per person material footprint remains much lower than the OECD average.
Chile has managed to increase its forest cover, mainly through large-scale tree plantations but at the expense of native forests, creating trade-offs between afforestation with non-native tree species and biodiversity objectives. Land-use change, such as the conversion of forest lands to agricultural use, fishery, mining, urban and infrastructure development, continue to put intense pressure on terrestrial ecosystems. Wildfires, mostly caused by human action (e.g., carelessness, negligence, agricultural practices, or criminal intent) and climate change exacerbate these pressures (OECD, 2024[2]).
Chile is a biodiverse country with at least 30 000 species assessed, of which 25% are endemic. The central and southern zones of the country are considered a global biodiversity hotspot and among the most threatened due to land use changes, such as export-oriented agriculture and forestry, urban and infrastructure development, and wildfires. Approximately 4% of known native species in the country are classified as threatened.
Chile has made significant progress in expanding its protected areas, having achieved the 2030 Convention on Biological Diversity (CBD) target on marine protected areas, by protecting 44% of its exclusive economic zone, making it a leader among OECD and Latin-American and Caribbean countries. Although Chile’s percentage of terrestrial protected area (20.3%) is higher than the OECD average (16.7%) more efforts are needed to meet the Global Biodiversity Framework (GBF) target 3 of the CBD. Under its Nationally Determined Contribution, Chile has committed to expanding its protected areas by at least 1 million hectares by 2030, with a special focus on high risk and underrepresented terrestrial ecosystems (e.g., absolute desert, Andean wetlands and salt flats, sclerophyllous and deciduous forests and coastal ecoregions such as the Humboldtian). However, challenges remain in increasing management effectiveness both in private and public lands (CBD, 2021[3]) and reducing threats from human activities, such as forest fires and salmon farming within and near protected areas.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
Environmentally related tax revenue as percentage of GDP has fluctuated around 1%, consistently below the OECD average. After falling to 0.81% in 2022, it has picked up to 1.23% in 2024. As in many countries, most receipts come from taxes on energy products and, to a lower extent, on motor vehicles’ purchase and use.
In total, 56.2% of GHG emissions in Chile were subject to a positive Net Effective Carbon Rate1 (ECR) in 2023. Explicit carbon prices in Chile consist of carbon taxes, which cover 32.9% of GHG emissions in CO2 equivalent. Fuel excise taxes, an implicit form of carbon pricing, covered 23.3% of emissions in 2023. Direct fossil fuel subsidies cover 1.4% of emissions. About 23% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 equivalent, a mid-range estimate of current carbon costs. Net ECRs are highest in the road transport sector, which account for 23.3% of the country's total GHG emissions. The Net ECR is zero or negative in the buildings, other GHG emissions and off-road transport sectors. Together, these sectors account for 28.9% of GHG emissions (OECD, 2024[4]).
The share of environmentally related government research and development (R&D) budget has increased in recent years, to reach 5.7% in 2023. The share of renewables in public energy research, development and demonstration (RD&D) has fluctuated wildly, from almost 100% in 2014 to 28.3% in 2023.
With around 1 invention per million national residents, Chile is a negligible player in environmentally related innovation.
International development co-operation is a component of Chile’s foreign policy. Chile graduated from the list of countries eligible to receive official development assistance (ODA) from the Development Assistance Committee (DAC) in 2017 but considers itself as a dual country (provider and recipient). This evolution has led the Chilean Agency for International Development Cooperation to strengthen its bilateral and multilateral ties, adopting new strategies that prioritise innovation and effectiveness in co‑operation. Chile provides technical co-operation through South-South, trilateral, multilateral and regional partnerships, with a focus on the Global South (OECD, 2026[5]).
References
[1] Ambiente, M. (2024), Documento del inventario nacional de gases de efecto invernadero serie 1990-2022, https://unfccc.int/sites/default/files/resource/2024_DIN_CL.pdf.
[3] CBD (2021), Aichi Biodiversity Target 11 Country Dossier : Chile, Convention on Biological Diversity.
[5] OECD (2026), Development Co-operation Profiles, OECD Publishing, Paris, https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/chile_f4312ff3-en.html.
[2] OECD (2024), OECD Environmental Performance Reviews: Chile 2024, OECD Publishing, Paris, https://doi.org/10.1787/5bc65d36-en.
[4] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
Further reading
CBD (2022), Country profiles: Chile, https://www.cbd.int/countries/profile?country=cl
EFI (2019), Planted Forest: The Big Opportunity for Forest Recovery in Chile and Uruguay, European Forest Institute.
Government of Chile (2020), Chile’s Nationally Determined Contribution, Government of Chile.
Kuzma, S., L. Saccoccia and M. Chertock (2023), 25 Countries, Housing One-quarter of the Population, Face Extremely High Water Stress, World Resources Institute, Washington, DC.
LIttle C., C. (2023), Otro Marco Forestal: del 701 a Territorios Multifuncionales, [Another Forestry Framework: from 701 to Multifunctional Territories], CIPER.
SINIA (2022), Reporte del Estado del Medio Ambiente 2022, [State of the Environment Report 2022].
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← 1. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.