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Fundación Chile and the IDB emphasize the role of the private sector in mobilizing an impactful climate agenda

  • A seminar that brought together representatives from the public, private, and civil sectors to analyze and debate the opportunities and challenges that the country faces in its journey towards carbon neutrality, included a showcase of green hydrogen projects, featuring Acero Verde, HyEx, and Hidrógeno Verde Bahía de Quintero projects.
  • Florencia Attademo-Hirt, General Manager, Country Department for the Southern Cone, and Country Representative in Chile for the IDB Group, addressed the matter on “how public climate policies can unblock the participation of the private sector in a sustainable economic recovery for the entire region, creating jobs and competitiveness.”

Net Zero: The company driving a transformative and impactful climate agenda” was the activity organized by the Inter-American Development Bank (IDB) and Fundación Chile, bringing together representatives from the public, private, and civil sectors to analyze and debate the opportunities and challenges that the country must tackle in its path towards carbon neutrality. They particularly addressed the role of private and corporate sectors as the driving force of an impactful climate agenda.

Among others, the activity included José Ramón Valente, Chairman of the Board at Fundación Chile; Marcos Kulka, CEO at Fundación Chile; María Florencia Attademo-Hirt, General Manager of Southern Cone Countries and IDB Group Representative in Chile; Camilo Avilés, Head of the New Energy Unit of the Ministry of Energy; Máximo Pacheco, former Minister of Energy and professor at the School of Government at Universidad Católica, and Mónica Duwe, CEO of HSBC Chile.

On the occasion, José Ramón Valente, Fundación Chile’s Chairman of the Board, emphasized that public-private cooperation is needed to tackle climate change, “where no hierarchies exist and concrete solutions are generated.” Valente added, “There is nothing that mobilizes businesses and people more than incentives; far more than prohibitions and regulations. And what better incentive is there, than to have the most important stakeholder that any business can have -which are the consumers- sensitized on the importance of climate change?”

Meanwhile, Florencia Attademo-Hirt, IDB, argued that a transition to a zero-emissions economy could generate 1% additional growth and 15 million net new jobs in the region by 2030.

Regarding the question posed on, “how can public climate policies – as the IDB group’s Vision 2025 points out- enable the private sector to participate in a sustainable economic recovery in the region, with job creation and competitiveness?” Attademo-Hirt said that with its long-term Climate Strategy, is where the country innovates, creating an institutional framework that aims -for coming years- to ensure that the private sector meets the regulations and incentives necessary to adopt technologies and practices such as these, and ensuring that the transition is fair and inclusive.

Natacha Marzolf, Senior Specialist of the IDB Group’s Energy Division noted, “regulations and financing prevent us from reaching carbon neutrality. Updating the regulations of government technical agencies such as public transportation, can mitigate risks and mobilize sources of private financing. We must demystify the climate funding from the private sector. Reaching carbon neutrality requires moving forward hand in hand with our private partners, and our commitment is to accompany the Chilean government on this path and support the private sector in implementing decarbonization solutions.”

According to Camilo Avilés, “in Chile 77% of emissions are produced by the energy sector; transport, large-scale mining, electricity generation are part of the industries that need to be decarbonized.”

Hence, he explained, “green hydrogen plays a fundamental role, as it allows the decarbonization of industries that are very difficult to decarbonize. We always thought that electricity market with the coal phase-out could be one of the great milestones, but this effort will not suffice. If we want to achieve carbon neutrality goals by 2050, we need a separate energy sector. And that is where green hydrogen plays a major role, as it allows us to decarbonize industries such as the steel, petrochemical, fertilizer, aviation maritime transport, and green hydrogen will allow us to use it as a fuel for all these industries.”

Also during the conference, there was a panel discussion to delve into electromobility, its opportunities, challenges, and new models of innovation considering inclusion. This was moderated by journalist Soledad Onetto and counted with Felipe Fernández, Director of Uber for the Southern Cone; Diego Fleischmann, CEO of Migrante, and Mariana Pavón, Deputy Director of Content at the Energy Sustainability Agency.

At the meeting, the representatives agreed on the importance of a comprehensive view of electromobility, as a complete ecosystem that allows progress on all fronts: infrastructure, vehicle supply, training and education, motorists, and users, among others. They also emphasized the importance of a public-private alliance to promote a massive adoption of this type of technology.

At the end of the event, a Showcase of green hydrogen projects was developed, with the participation of the projects Acero Verdel, HyEx, and Hidrógeno Verde Bahía de Quintero.

Projects:

HyEx: Engie in colaboration with ENAEX

HyEx aims to produce green ammonia in northern Chile for domestic and international use, hence replacing imports.

The company ENGIE, is a global benchmark in low-carbon energy and services, with a Business Unit fully geared towards renewable hydrogen since 2018. ENAEX, is the leading producer of ammonium nitrate, and a full-service rock fragmentation supplier for the mining industry in Latin America.

With over 100 years-experience and operations in 10 countries, ENAEX is actively committed to sustainability.

Hidrógeno Verde Bahía de Quintero: GNL Quintero in collaboration with Enagas and Acciona

GNL Quintero, Chile’s largest Liquefied Natural Gas (LNG) regasification terminal located in the bay of Quintero, intends to use its proximity to industrial areas with high energy demand and gray hydrogen consumption to produce green hydrogen for the domestic market.

GNL Quintero is a terminal used to receive, unload, and re-gas LNG. In operation since 2009, it supplies the demand for natural gas in the central region of Chile, transporting the gas by both pipelines and trucks. The company is 20% owned by ENAP, Empresa Nacional del Petróleo de Chile (the Chilean National Petroleum Company).

Proyecto Acero Verde: CAP Acero en colaboración con Paul Wurth

The HUACHIPATO steel mill (CAP Acero) is part of the integrated iron and steel group CAP and is Chile’s leading steel producer. The company plans to reduce CO2 emissions from its steel production processes by developing a technology that allows the incorporation of green hydrogen along its value chain.

CAP Acero – Compañía Siderúrgica Huachipato S.A. – is a CAP Group company and the leading steel producer in Chile. It has been leading the steel business in Chile since 1950 and currently its production capacity is of 800,000 tons of liquid steel/year. CAP Acero is the only integrated steel mill in the country, which means that it produces steel from basic raw materials, such as iron ore, coal and limestone, which guarantees products of high purity and controlled quality. It supplies important sectors of the economy, mainly the mining, metal-mechanic and construction industries.

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