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NR-11 - Clean Production Agreement (CPA) in Chile


NAMA for Recognition

  • A Overview
    • A.1Party
      A.2Title of Mitigation Action

      This field is limited by 200 characters.

      A.3Description of mitigation action
      **Updated entry on 07.12.2021**

      The CPAs are intended to contribute to the sustainable development of companies through the definition and compliance with specific goals and actions, in environmental, health, hygiene and occupational safety matters, efficient use of energy and  productive development. In particular the CPA shall be understood to be the agreement between a business sector, company or companies, with the Institutions of the State that have competence in the aforementioned matters.

      It is the responsibility and main purpose of the Climate Change and Sustainability Agency (ASCC) of the Production Development Corporation, to carry out the coordination activities between the organs of the State Administration and the companies or entities of the private sector that correspond, in any of the stages of elaboration and implementation of the Clean Production Agreements. The Climate Change and Sustainability Agency has a governing board composed by the several ministries and agencies, representatives from the main industrial associations of the private sector, and a representative from the main workers organization of the country. The public and private sector have a balanced representation in this board. The ASCC has been Certified the CPA’s under ISO 9.001 and is working to get an accreditation under ISO 17.065.

      The ASCC is financed by the Republic of Chile. Most human resources are directly or indirectly dedicated to the management of CPAs. The ASCC has a fund available to the private entities that can co-finance up to the 70% the expenditure on projects that support the creation and implementation of these agreements. 


      A.6Type of action

      A.7Greenhouse gases covered by the action

  • B National Implementing Entity
    • B.1.0Name
      B.1.1Contact Person 1
      B.1.5Contact Person 2
      B.1.9Contact Person 3
      Add Additional Entity
  • C Expected timeframe for the implementaion of the mitigation action
    • C.1Number of years for completion
      C.2Expected start year of implementation
  • D Currency
    • D.1Used Currency
      Conversion to USD: 1
  • E Cost
    • E.1.1Estimated full cost of preparation
      Conversion to USD: 4,100,000
      E.1.2Comments on estimated full cost of preparation
      This includes activities that are considered additional regarding  the calculations and updating of the NAMA, that represent around the 10% of total cost of the professional in charge of this update. There are significant costs regarding design changes in the NAMA, but they are considered part of the operational and  continuous improvement costs of the institution and the program, and therefore not additional to this particular update.
      E.2.1Estimated full cost of implementation
      Conversion to USD: 45,050,000
      E.2.2Comments on estimated full cost of implementation
      This only includes the cost incurred by the Climate Change and Sustainability Agency (ASCC). This value is calculated assuming the annual budget for the ASCC will be the same that was allocated in 2020 , extrapolated to the time frame considered in this update (2020-2030). That is US$ 4.096 million, multiplied by 11.

      E.3.1Estimated incremental cost of implementation
      Conversion to USD: 321,000,000
      E.3.2Comments on estimated incremental cost of implementation

      The incremental unit is 1 Clean Production Agreement. 

      The incremental cost is estimated using the average life cycle costs (not a yearly cost) of the agreements that were certified in 2020. This includes the human resources, the procurement of services and direct transfers made to the private sector by the ASCC in the context of these agreements. 

      It can be argued that for a few extra CPA the increment should not be linear but is not unreasonable to expect that for a large enough increase changes to the institution structure itself might be needed in terms of new hires and training, coordination costs, and so on. In that sense this value can be used as an upper limit, if other factors remain equal.

  • F Estimated emission reductions
    • F.1Amount

      This amount has to be in units of MtCO2e (Million metric tons of carbon dioxide equivalent) or MtCO2e/yr (Million metric tons of carbon dioxide equivalent per year)

      F.3Additional information (e.g. if available, information on the methodological approach followed)
  • G Other indicators
    • G.1Other indicators of implementation
      i) New facilities entering an agreement per year
      ii) CO2 reduction per year per facility, 
      iii) CPA failure rate, 
      iv) certification success rate, 
      v) Time to certification, 
      vi)Time to baseline. 

  • H Other relevant information
    • H.1Other relevant information including co-benefits for local sustainable development
      The CPA’s can have several co benefits depending on the specific goals and actions. 

      Using the SDGs as a taxonomy, we have developed a reporting framework for these different co-benefits. In the latest update, we reported (and developed) several indicators using the SDGs as a framework. As a result we have covered almost all of the SDGs. 

      Additionally, we were able to  do conversion to a monetary value on several of them. The rate used is based on social value estimates supported by literature . By aggregating this number we created a form of sustainable index that represents the social value created (or damage avoided) with the CPAs. Based on the same assumptions explained in F.3, we reach a result of MM US$836 for the period 2020-2030, using the observed 2012-2020 average per year per facility of US$75,086.

      This considers the economic valuation of avoided costs for the economy as a whole, in relation to less energy use, less water use, less waste disposal and fertilizer uses. There is the challenge of evaluating more indicators, and moving from market value to values that also have externalities embedded into them. This is one of the challenges that will be addressed on future reports during this 2020-2030 period.

  • I Relevant National Policies strategies, plans and programmes and/or other mitigation action
    • I.1Relevant National Policies
      Clean Production Agreement Law

      Nationally Determined Contribution (NDC 2020). Contribución Determinada a Nivel Nacional de Chile, Actualización 2020. In page 50, The CPAs are mentioned as a vehicle for the inclusion of the circular economy in companies.

      National Climate Change Action Plan (2017). Plan de Acción Nacional de Cambio Climático 2017-2022, 2017.  (Page 122, Sheet MM22. The agreements are considered as an instrument to achieve synergies with the program of the Ministry of the Environment in quantifying emission reductions.)

      National Climate Change Action Plan (2017). Plan de Acción Nacional de Cambio Climático 2017-2022, 2017.  (Page 122, Sheet MM22. The agreements are considered as an instrument to achieve synergies with the program of the Ministry of the Environment in quantifying emission reductions.)

      Climate Strategy for technology development and transfer (2021). The more general term “agreement” is used in page 20 letter e) and in the table of page 50. Those are the roles envisioned for the CPA’s in the context of that strategy, but it was referenced in a more open way in order to not narrow the implementation of that strategy to a single type of agreement.

      Chile Long Term Climate Strategy (2021). The CPA’s are specifically mentioned in page 225, under instruments for financial leverage, due to the role of the CPA’s in mobilizing the private sector. Also in page 172 the CPAs are mentioned as an instrument to manage hydric resources.

      I.2Link to other NAMAs
  • J Attachments
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