Written by Felipe Mac-Conell, Tax Lawyer
Chile is advancing the implementation of its Green Taxonomy, formally called the Taxonomy of Environmentally Sustainable Economic Activities (T-MAS). Three months after its launch, the initiative is emerging as a central element of the country’s sustainable-finance architecture. By defining what counts as a “green” activity, T-MAS seeks to bring transparency and consistency to the way both public and private actors assess environmental impact and channel investment.
A Structured Path Toward Implementation
As explained by Carola Moreno, Coordinator of the Office of International Finance at the Ministry of Finance, the government plans to introduce an interactive self-assessment platform later this year. This tool will allow companies to measure their degree of alignment with environmental criteria and prepare for potential disclosure requirements.
During 2026, pilot projects with banks will evaluate how the taxonomy can be incorporated into financial operations. While initial use will be voluntary, the Ministry has already outlined a roadmap for possible mandatory application, developed in coordination with Chile’s financial regulators.
The government also intends to assess the taxonomy’s application across the public sector, alongside a comparative study with the European Union (EU) taxonomy, which served as the main reference for the Chilean framework.
Core Objectives and Scope
T-MAS classifies economic activities according to six environmental objectives: mitigating and adapting to climate change, protecting water and marine resources, advancing a circular economy, preventing pollution, and conserving biodiversity.
Rather than imposing new obligations, the system aims to harmonise existing rules and align investment with Chile’s long-term decarbonisation commitments.
For companies operating in regulated sectors, such as energy, construction, transport, and manufacturing, understanding how their projects fit within these categories will be critical to securing access to sustainable financing.
Market Impact and Business Considerations
Margarita Ducci, Executive Director of Global Compact Chile, highlights that many companies see T-MAS as a strategic bridge to international ESG standards. Magdalena Aninat, from the Universidad Adolfo Ibáñez, emphasises that proportionality in reporting will be essential as the framework evolves.
For investors and lenders, the implications are equally significant. Experience from the EU taxonomy shows measurable results: 43 percent of corporate investment in long-term assets, such as infrastructure and technology, is now considered environmentally sustainable, and 16 percent fully meets all criteria .
Although T-MAS has not yet introduced binding reporting duties, it is expected to create market pressure. Financial institutions are likely to favour companies with transparent sustainability alignment, gradually shaping access to credit and investment opportunities
Conclusion
The Green Taxonomy represents a pivotal step in Chile’s transition toward sustainable finance. For businesses, it provides a shared language for environmental performance; for investors, it offers greater legal certainty and comparability.
As implementation advances, companies should begin evaluating their operations and investment structures under the T-MAS framework. Doing so early will not only support compliance once the taxonomy becomes mandatory, but also position them to attract international capital committed to a low-carbon economy.
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