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Strengthening the Regulatory Framework: Key to Attracting Investment and Advancing Chile’s Energy Transition

AN EXCLUSIVE INTERVIEW WITH:
José Adolfo Moreno

What is the main challenge that Chile is facing today in energy development?‍

The main challenge is to improve the regulation. Over the last decade or so, Chile has demonstrated to the world that renewable energy is competitive and can develop a competitive market. However, that impressive achievement and results will not improve much more if Chile don’t improve from the regulatory standpoint. I believe that there is a huge space to attract more investment to help on creating a more stable energy matrix. Also, there is a need to improve environmental regulation and the performance of the environmental assessment system.

As a legal expert in environmental and natural resources law, how do you evaluate Chile’s current permitting framework for energy and infrastructure projects? What are the main barriers and possible improvements?‍

Chile has by far one of the most efficient permitting frameworks in the region. It has worked in a good way for several decades. However, I believe that there are quite a few challenges in order to avoid the “overregulation trap”. In the last 5–8 years, the agencies have developed several guidance and instructions that in many cases imply unnecessary technical and economic efforts for developers. Also, from an institutional standpoint, I believe that SEA (Environmental Assessment Agency) should be stronger in terms of capacities and to attract and retain talent. Finally, there are two important barriers regarding the recursive system; it is very easy to challenge environmental permits and the procedures may last 5 years, creating a lot of uncertainty for the investment. Finally, it is important to improve regulation regarding indigenous consultation and public participation. Usually these processes, which are part of the environmental assessment, imply a serious obstacle to obtaining the environmental permit. I believe there is a need to impose not only rights but also duties to citizens and indigenous communities participating in these processes.

What is the role of legal professionals and law firms in supporting a just, transparent and investment-friendly energy transition in Chile?‍

Legal professionals should look to deliver timely and sound strategies to their clients. But if there is something important, it is to provide ethical advice. In the case of our law firm, we count with several experts on environmental and public law with specific background in the public and private sectors. All of them are able to combine their experience with creative and innovative solutions which add value to the execution of the projects.

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