Chile is moving closer to joining the global carbon trading arena by finalising a new regulation under Article 6 of the Paris Agreement. The measure will establish a national CO₂ registry and provide the foundation for international carbon credit transactions.
Alerce Costero National Park, the largest forest in Chile, is filled with ancient trees and lush green nature. Ai generated picture.
The regulation aims to ensure that the country can effectively oversee the transfer of Internationally Transferred Mitigation Outcomes (ITMOs)—the carbon units used for cross-border trades between governments.
‘Over the next months or at the beginning of the next year at the latest, we will have a platform for ITMOs’, said Cristina Figueroa, carbon markets coordinator at the Ministry of Environment, during the Chile Carbon Forum in Santiago.
The milestone follows Chile’s announcement that it has issued its first Letters of Authorisation (LoAs), which allow carbon credits generated within its territory to be traded internationally. The inaugural LoAs apply to a project developed under a bilateral agreement with Switzerland—one of the countries already engaging in Article 6 mechanisms. Switzerland is expected to issue its corresponding authorisations shortly, paving the way for the first transaction between the two nations.
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According to Figueroa, Chile anticipates that the first ITMO trade with Switzerland could occur ‘between 2027 or 2028.’ The project, led by local developer D-Energy, will replace coal-fired generation with biomass, using a dedicated methodology approved by both governments. It is expected to deliver 400,000 carbon credits by 2030, which Switzerland will use to help meet its Paris Agreement targets.
In addition to its collaboration with Switzerland, Chile is in talks with Singapore for similar agreements. The upcoming decree will be key in enabling Chile to formalise ITMO transactions and strengthen its role in the global carbon market.
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Chile’s progress under Article 6 reflects a larger shift in global carbon markets—from early frameworks to operational systems enabling transparent, cross-border carbon trading. As more nations build the infrastructure for verified, high-integrity carbon exchanges, the opportunity for impact grows too. At Green Earth, we don’t just connect companies to impact—we create it. By developing high-quality, nature-based carbon projects that generate verified carbon units, we enable businesses to invest directly in real restoration and lasting environmental value.
