Chile's Development Strategy
The Chilean government is pursuing an ambitious course toward socio-ecological transformation:
Chile is considered one of the most economically stable countries in South America—with reliable institutions, a strong commitment to trade and innovation, and active participation in multilateral sustainability initiatives. At the same time, the country is characterized by an extremely diverse landscape: from the Atacama Desert in the north to the fertile central regions and the glacial landscapes of Patagonia.
This diversity holds enormous potential—for example, in renewable energy, lithium production, sustainable agriculture, and biodiversity conservation. At the same time, Chile faces structural challenges: its economic dependence on raw material exports (particularly copper and lithium), extremely uneven regional development, and social tensions between urban centers and peripheral areas call for a new balance between productivity, inclusion, and ecological resilience.
Chile is in a transitional phase—between an extractivist past and a future focused on green and social issues.
.png)
National Sustainable Development Strategy
A framework strategy for implementing the 2030 Agenda, with a focus on social justice, climate neutrality, biodiversity conservation, and territorial coherence.
%20(1).png)
– National Green Hydrogen Strategy
A strategic plan to position Chile as a global leader in green hydrogen—particularly through solar and wind power generation in the north and south.
.png)
– Climate Change Adaptation Action Plan 2023–2027
An integrated climate adaptation strategy focusing on water, agriculture, urban development, and disaster preparedness.
.png)
– New National Land Use Policy (PNOT)
A tool for promoting balanced regional development and socio-ecological inclusion in rural and remote areas.
These strategies are interlinked—Chile aims to achieve a fair, knowledge-based, and climate-neutral society by 2050. The country aims to source at least 70% of its electricity mix from renewable sources by 2030 and to significantly reduce emissions.
An Overview of the Challenges
Water Availability & Drought Crises
Chile has been suffering from a “mega-drought” for over a decade. In regions such as Coquimbo and Valparaíso, groundwater levels and glacier reserves are critically low. Access to water is increasingly becoming a source of social tension.
Inequality & Territorial Division
Although Chile has a strong economy by Latin American standards, social inequality remains high. Rural areas—such as Araucanía or the Altiplano—lack adequate infrastructure, and indigenous communities are often excluded.
Climate Risks & Biodiversity Loss
Chile is highly vulnerable to climate change: glacial melt, wildfires, coastal erosion, and species decline affect large parts of the country. Funding for the protection of its unique ecosystems—such as the succulent plants of the Atacama or the endemic forests in the south—is insufficient.
Dependence on raw material exports
Copper accounts for about 50% of exports, increasingly supplemented by lithium. The limited domestic processing, high water and energy consumption, and environmental impacts in mining areas raise questions about sustainable value creation.
Global Alliances & Multilateral Cooperation
Climate Diplomacy & Hydrogen Partnerships
Chile is an international leader in climate policy (Co-Chair of the NDC Partnership) and a partner country of Germany, the EU, Japan, and the U.S. in the development of green hydrogen markets. Over 40 pilot projects are currently underway.
Just Energy Transition & Circular Economy
In collaboration with the World Bank, the IDB, GIZ, and UNDP, Chile is supporting programs for zero-emission industry, sustainable mobility, and recycling—for example, through the Circular Economy Roadmap 2040.
Biodiversity and Protected Areas Programs
In collaboration with UNESCO, ECLAC, and national NGOs, marine and terrestrial protected areas are being strengthened—for example, along the Patagonian coast, in the lake district, and in Chile’s central biodiversity corridor.
.jpg){kind=icon}
.jpg){kind=icon}
.jpg){kind=icon}
.jpg){kind=icon}
.jpg){kind=icon}
.png)
