This policy update summarizes the steps taken by Chile in relation to its new energy efficiency law and its targets for zero-emission vehicles (ZEVs), and it analyzes the implications of these two policies for the decarbonization of fleets regionally and internationally. In recent years, Chile has created several public policies for clean transportation. Chile’s leadership is notable both in Latin America and internationally; it arguably has the potential to inspire similar climate policies in other countries. Particularly noteworthy are Chile’s energy efficiency law and its zero-emission sales targets. The law not only sets stringent fuel economy standards for light-, medium-, and heavy-duty vehicles––a first for Latin America––but also includes tax incentives for zero-emission vehicles, provides for interoperability of recharging systems for EVs, and designates hydrogen as an official fuel. The zero-emission sales targets will be in effect for all types of on- and off-road vehicles by 2045, which is an especially important achievement.
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