Organization for Economic Cooperation and Development (OECD) Chile’s mid term review Mr. Ricardo Irarrazabal Under Secretary Ministry of the Environment Paris, Wednesday 22 nd July 2011

Gobierno de Chile | Ministerio del Medio Ambiente Chile’s Geography and data 2 17 million inhabitants (projection 2012) 200 US billion GDP ppp. Democratic Republic divided in three powers: Executive (President and ministries) Legislative (Congress) Judicature (Supreme court and judicial system) 15 regions Except for tropical forest, almost all climates and ecosystems represented native species, 25% of endemism. Main economic activities: mining, fisheries, Forestry, agriculture, aquaculture, finance Services,

CONTENTS 3 1.Overall context 2.Mid term review i.Environmental Management (1-25) a.Implementing Environmental policies (1-6) b.Air management (7– 12) c.Water management (13– 18) d.Nature and biodiversity (19-25) ii.Towards Sustainable Development (26-45) a.Integration of environmental concerns in economic decisions (26-31) b.Sectoral integration: mining, forestry, aquaculture (32-40) c.Integration of environmental and social concerns (41-45) iii.Strengthening International Commitments (46-52) 3.Conclusions

CONTEXT 1994: Enactment of law N o , General Environmental Framework 1998: Entry into force of the Environmental Assessment System. First Atmospheric depollution plan for Santiago. 2005: Environmental Performance Review of Chile conducted by OECD. 2010: Chile becomes Member of the OECD (May) and in October, the New Environmental Law entered in force (N o ). Important reforms, including the establishment of the Ministry of the Environment and related institutions. 4

ENVIRONMENTAL PERFOMANCE REVIEW : signing of MoU between OECD, ECLAC and CONAMA. Chile becomes the first Latin American country to undergo a peer review of its environmental performance on a voluntary basis and as a non member. Expert group of 15 officials from OECD visited Chile and did on-site research and prepared report. Around 80 public service workers and more than 150 stakeholders from private and civil society involved in the process. Peer review held in Paris in January 2005, with a High Level Delegation from Chile. Report issued in May 2005 Acknowledges the gains on environmental management since the 1994 Environmental law. Identifies gaps regarding some important issues. Suggests improvements to fill in those gaps (52 recommendations).

2. MID TERM REVIEW 6

Gobierno de Chile | Ministerio del Medio Ambiente 77 Environmental Management: Environmental Policies Environmental reform: Ministry of the Environment, Environmental Assessment Service, Superintendency of the Environment (Enforcement Service) Ministerial Council for Sustainability Environmental Courts, Biodiversity and Protected Areas Service (both in Congress ) 17 new rules and/or decrees including ecological river’s flow and Strategic Environmental Assessment for policies and programs. Bill on Waste management, in preparation. Environmental legal harmonization. Technical design for the Environmental Assessment Service.

Gobierno de Chile | Ministerio del Medio Ambiente 88 E.M.: Air Management Air pollution standard for PM 2.5 (enacted). Revised quality standards for PM10, SO2, CO, NOx, O3. Emission standards for thermal power plants. Under revision. Revised standards for light pollution to protect astronomical observation. Emission standards for smelters, furnaces and power generation units and wood fire stoves. In preparation Update of Atmospheric Depollution Plan for Metropolitan region Depollution plans for Temuco; Concepción-Talcahuano; Tocopilla and 4 other cities;

Gobierno de Chile | Ministerio del Medio Ambiente 99 E.M.: Water Management Secondary standards in preparation for 9 rivers and 3 lakes. Standards already enacted for 1 river, 1 lake and 1 mining dam. Standards for marine sediments and Estuaries water Standards for industrial discharges in continental and marine water bodies and into ground water. Standards for discharge in and from sewage treatment plants. Improvements of irrigation for small size farmers and update of the Water Code (ecological river’s flow; fees for water rights allocated and not used). Gaps still present in watershed management: creation of a specialized division, inside the Water Agency, to promote coordination among users

Gobierno de Chile | Ministerio del Medio Ambiente 10 E.M.: Nature and Biodiversity Bill of law for the Biodiversity and National Park system. Currently in Congress. Over 20% of the continental land protected Gaps in the protection of specific ecosystems, mainly Mediterranean (less than 10%). Since 2005, 24 new protected areas, include 7 marine areas or reserves. Few improvements in the scientific knowledge related to effective protection of biodiversity. Obligation under the new law to create recovery plans for threatened species. Programs and activities to protect sensitive ecosystems such as wetlands, mountains, peat formations, etc.

Gobierno de Chile | Ministerio del Medio Ambiente 11 Towards Sustainable Development (1) Integration of environmental concerns in economic decisions. Council of Ministries for Sustainable Development. Social Economic Assessment for depollution plans and emission standards enactment. Inclusion of economic analysis for health impact of pollution related to air, water, waste management and soil. Inclusion of environmental concerns in public purchases. Development of a Strategic Environmental Assessment for policies and programs. Economic tools to promote Energy Efficiency and Renewable Energies.

Gobierno de Chile | Ministerio del Medio Ambiente 12 T.S.D.: Sectoral Integration: mining, forestry and aquaculture (2) Emission standards for smelters. Closure programs for mines, currently finishing its Congress discussion. Specific financial and technical programs to support small and medium size mining companies. New Royalty for the mining sector to finance Research and Development programs. Enactment of the “Native Forest” law (2008) to protect ecosystems and promote sustainable use of forests. Certification programs for the timber and logging industry. New approach to manage granted aquaculture areas, taking in account its carrying capacity on nutrients and environmental impacts. Increased fees for water concessions on aquaculture. Adapting existing aquaculture areas to existing or proposed coastal zoning.

Gobierno de Chile | Ministerio del Medio Ambiente 13 T.S.D Integration of environmental and social concerns (3) Guaranteed access to environmental information through the Transparency Law and the Environmental Law. Obligation, under the new law, to provide annual environmental reports. Enhanced public participation in the new Environment Assessment process. Approval of the ILO 169 Convention (included in the Environmental Assessment process). Special attention to people’s health, through the appropriate management of chemicals. Enhanced programs for environmental education (formal, informal, workplaces, municipalities). Environmental Certification programs for schools, municipalities and university campuses. Strengthening of sustainable tourism, organic production, clean production programs.

Gobierno de Chile | Ministerio del Medio Ambiente 14 Strengthening International Commitments Ratification of all relevant Multilateral International Environmental Conventions: Climate Change, Biological Diversity, Desertification, Vienna and Montreal Protocol, Chemicals. Environmental chapters or parallel agreements in Free Trade Agreements with more than 20 countries including UE, USA, China, Japan, New Zealand, Colombia, Panamá, Canada, etc. Up to date management of chemicals and substances that deplete ozone layer, in accordance with relevant conventions and protocols. Improvement of marine protection including of threatened species and sensitive areas, in accordance with relevant international marine agreements. Second National Communication on Climate Change to be presented on July Chilean Pledge to reduce 20% of its emissions compared with the 2007 baseline’s projection.

Gobierno de Chile | Ministerio del Medio Ambiente 15 Conclusions Important improvements since 2005 on Institutional Framework, air quality, biodiversity, waste management, energy, climate change and international commitments. Strengthened capacities for environmental management, environmental assessment and enforcement. Important progress in public participation, environmental education and promotion. Some gaps still persist in the areas of Environmental Information, water management and soil remediation. Inclusion of environmental aspects in major industries such as mining, forestry and fisheries. The new institutional framework will create a numerous new opportunities that will have to be followed in order to assess its effectiveness.

Gobierno de Chile | Ministerio del Medio Ambiente 16 Thanks for your attention