New Incentives and Regulations for Green Hydrogen and Clean Energy Investments in Chile

The world is urgently seeking ways to achieve effective decarbonization — and Chile has no intention of standing on the sidelines in this race. During the prestigious Chile Day event in New York, Finance Minister Mario Marcel presented a plan aimed at attracting investors interested in green hydrogen and renewable energy. For a country with excellent access to sun, wind, and critical minerals, this is a tremendous opportunity to provide its citizens with affordable and secure energy.

Green Hydrogen as the Cornerstone of the Energy Transition

According to Minister Marcel, more than 70 green hydrogen projects are currently under review in the country. A new tax bill, expected to be submitted to parliament soon, includes incentives for companies investing in hydrogen technologies — with particular emphasis on high-energy-use sectors such as mining, manufacturing, and transport.

Thanks to its unique natural conditions — including high solar radiation in the Atacama Desert and favorable wind conditions in the south — Chile has the potential to become a global leader in the export of green hydrogen and its derivatives.

New Mechanisms to Accelerate Investment

In addition to tax incentives, the government has announced a forthcoming presidential directive aimed at expediting over 100 investment projects by streamlining and standardizing environmental review criteria. At the same time, new regulations will ensure legal and regulatory stability for projects already underway — a move designed to counter the uncertainty that often deters foreign investors.

There are also plans for dedicated legislation for decarbonization projects to allow faster implementation of initiatives aimed at reducing CO₂ emissions in the industrial and energy sectors.

Strategic Sectors

The announced measures are part of a broader government strategy to stimulate investment in six key economic sectors: mining, lithium, renewable energy, green hydrogen, the digital economy, and tourism. As Minister Marcel highlighted, investment commitments for 2024–2028 already total USD 39 billion. Among the global giants involved in the development of Chile’s economy are Minera Escondida, Freeport McMoRan, Amazon Web Services, and TotalEnergies.

Macroeconomic Stability and Reform to Support Investment Climate

Minister Marcel also emphasized progress in macroeconomic stabilization, fiscal reform, and pension legislation, which are strengthening the foundations of the economy. Thanks to these efforts, Chile’s potential GDP growth may exceed 2% annually — positioning the country favorably in the global competition for capital, especially amid rising uncertainty.

Source: renewablesnow.com