Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) Market Instruments for climate change mitigation in Chile (P130378) LATIN AMERICA AND CARIBBEAN | Chile | Energy & Extractives Global Practice | Recipient Executed Activities | Specific Investment Loan | FY 2015 | Seq No: 4 | ARCHIVED on 07-Jun-2017 | ISR27890 | Implementing Agencies: Ministry of Energy, MEF -AGCI Key Dates Key Project Dates Bank Approval Date:27-Aug-2014 Effectiveness Date:05-Sep-2014 Original Closing Date:04-Sep-2017 Revised Closing Date:04-Sep-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to provide technical assistance to the Beneficiary in the design and implementation of a Monitoring, Reporting and Verification (MRV) framework and registry, and the design and preparation of one or more carbon pricing instruments in the energy sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Implementation Status and Key Decisions The Project is under implementation, and likely to meet Project's objectives. 6/7/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) 6/7/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) Risks Overall Risk Rating 6/7/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) Risk Category Rating at Approval Previous Rating Current Rating Overall  Low  Low  Low Results Project Development Objective Indicators PHINDPDOTBL One or more carbon pricing instruments and associated infrastructure recommended to the Government and concrete activities to develop specific elements proposed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments Among all carbon pricing instruments, Chile has selected a carbon tax. The carbon tax scheme has been implemented and is active since January 2017. The activities under the Project have supported its implementation. PHINDPDOTBL MRV framework and registry established within the energy sector (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The registry has already been implemented. The MRV framework for the carbon tax has been designed and explained to the different stakeholders that will be using it during implementation. Facilities affected by the carbon tax are currently testing the functioning of the MRV system and registry. PHINDPDOTBL Knowledge, awareness, and capacity developed in the public and private sector in relation to the design and implementation of carbon pricing instruments. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/7/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) Value N Y Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments Various workshops with key stakeholders (including academia, NGOs, private, and public sector) have been held to explain the implementation of the carbon tax and the MRV protocol. These workshops have been done in strong coordination among the Ministry of Environment, the Environment Audit Agency (Superintendencia de Medio Ambiente), the Internal Revenue System (Servicio de Impuestos Internos), and the Ministry of Energy. Overall Comments The following knowledge, awareness and capacity activities have been developed by the Project: • Various training sessions with key stakeholders (including academia, NGOs, private, and public sector) have been held to explain the implementation of the carbon tax and the MRV protocol. These workshops have been done in strong coordination among the Ministry of Environment, the Environment Audit Agency (Superintendencia de Medio Ambiente), the Internal Revenue System (Servicio de Impuestos Internos), and the Ministry of Energy. • 3 workshops on green taxes conducted in the cities of Santiago, Antofagasta and Concepcion. • Two Technical workshops on Component 1 deliverables • Two videos: one on the Chilean carbon tax and a second one on MRV systems • Project brochure in Spanish and English • Project website was successfully launched in December 2016: http://www.precioalcarbonochile.cl/ Intermediate Results Indicators PHINDIRITBL Regulatory Analyses for carbon pricing mechanisms in Chile (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The following consultancies "Analysis of international developments on carbon pricing and their implications on Chile's related public policies" and "Analysis of the interaction and consistency between the carbon tax and other national energy policies and regulations", completed in January 2017 and to be delivered by July 2017 respectively, provide various recommendations on the regulatory framework to support carbon pricing mechanism. 6/7/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) PHINDIRITBL Economic Analysis for carbon pricing mechanisms in Chile (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The analysis conducted under the Upstream Policy Analysis of the PMR Secretariat, "Analysis of the potential impacts from the implementation of the carbon tax in Chilean thermal generation plants", incorporated an economic analysis for carbon pricing mechanism in Chile. PHINDIRITBL Institutional Analysis for carbon pricing mechanisms in Chile (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The consultancy on "Alternatives of design and additional measures to decide on a more comprehensive carbon pricing instrument" is currently being developed and expected to be completed by July 2017. The consultancy "Detailed evaluation of Chile’s participation in the CDM, considering the new scenario of commitments under the Paris Agreement" completed in January 2017, also provided useful insights on the institutional aspects of the carbon pricing mechanisms in Chile. PHINDIRITBL Design and Implementation of MRV system (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The work among the different government institutions in the development of the MRV system that enabled the implementation of the carbon tax. 6/7/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) PHINDIRITBL Design and implementation of a bottom up registry (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments The work among the different government institutions in the development of a registry system that enabled the implementation of the MRV and therefore the carbon tax. PHINDIRITBL Development and execution of a stakeholder and communication strategy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments 6/7/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) PHINDIRITBL Participation of public and private stakeholders in trainings and country visits (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 04-Sep-2014 07-Nov-2016 26-May-2017 04-Sep-2017 Comments Various trainings have been held with the public and private sectors, as well as academia and NGOs, regarding the actual MRV protocol in place on how the facilities will have to report. Technical training on the IT security and computer procedures will take place in May 2017. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P130378 TF-17731 Effective USD 3.00 3.00 0.00 1.70 1.30 57% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130378 TF-17731 Effective 27-Aug-2014 05-Sep-2014 05-Sep-2014 04-Sep-2017 04-Sep-2017 Cumulative Disbursements 6/7/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Market Instruments for climate change mitigation in Chile (P130378) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/7/2017 Page 9 of 9 Public Disclosure Copy