Environmental impact analysis

This analysis will provide a detailed assessment of the potential environmental impact, both direct and indirect, of the future modernized agreement. Although the analytical work carried out in the ex-ante study has shown that, overall, environmental impacts are likely to be limited both in Chile and the EU, recent political agreements in Chile and in the EU could have a significant impact on selected environmental matters.

For example, the ratification and entry into force of the Paris Climate Agreement is expected to stimulate policies and measures to mitigate greenhouse gas (GHG) emissions and consequently impact investments and production and consumption patterns. Prominent examples of such policies and measures in Chile are the National Action Plan for Climate Change 2017-2022, the specific plans put forward to mitigate GHG emissions from the energy sector that is responsible for nearly three quarters of Chile’s total CO2 emissions, and the entry into force of the carbon tax. Therefore, in line with the EU Council’s Negotiation Directives the study will assess possibilities for promoting a greater contribution of trade and investment to sustainable development as well as promotion of trade favouring low-emission, climate-resilient development. The analysis will focus mainly on GHG, use of energy, air quality, biodiversity, water resources, ecosystems services and protected areas and waste management.