Establishing clear green definitions would give Chile an advantage compared to other countries in the region. It will help to increase capital flows for sustainable projects that would make Chile’s economy greener. A sustainable classification system may ease the flow of capital into sustainable activities and assets and guide climate-aligned investments and project development. In addition, it supports the correct assessment of climate-related risks for the financial sector.
The report "Taxonomy Roadmap for Chile" offers the Chilean government an assessment of some of the best approaches to developing a national taxonomy. It outlines pathways for creating a national green taxonomy and provides an overview of existing taxonomies, analyzing its potential benefits and challenges. The report also describes various applications and users of the taxonomy and opportunities and challenges for sustainable finance.
In conclusion, a national taxonomy will help Chile to establish a green investment roadmap, which will act as a blueprint for the country’s transition towards a green economy. If aligned with international taxonomies, the national taxonomy will help increase the flow of capital into green projects from international sources.
Click here to read the original article published by The Climate Bonds Initiative.
Please give your feedback on this article or share a similar story for publishing by clicking here.
