Chile plans carbon tax for fossil based power generation
Newly re-elected President of Chile, Michelle Bachelet is planning a carbon tax for its economy which would impose up to $5 per metric ton of carbon dioxide emitted.
The newly re-elected President of Chile, Mrs. Michelle Bachelet promised a large number of reforms, one of particular interest. She plans the introduction of Latin America’s second carbon tax.
As reported by Think Progress, the proposal by the President “calls for charging thermal power plants with a generation capacity of at least 50 megawatts a tax of $5 per metric ton of carbon dioxide emitted. Chile is the world’s leading copper producer, and many copper mines in the country are powered by coal-fired power plants that rely on imported oil and gas to operate.
“These companies can incorporate technologies to reduce pollutants or simply change the fuel they use,” Chile’s new environmental minister, Pablo Badenier, told local media. “Once you have the taxation in place, you open a range of possibilities to reduce emissions.”
With the economic growth having somewhat slowed, the power demand of the country continues to rise at a rapid pace. This provides a huge challenge for Chile to provide the power needed but also do so in a sustainable fashion.
This could be another and much needed incentive to support geothermal development in Chile.