Chilean Business Sectors Criticize Governance Rules for the Escazú Agreement

Santiago, Chile – The Chilean Chamber of Construction (CChC) and the National Mining Society (Sonami) have formally criticized the Ministry of Environment’s draft proposal defining governance rules for the implementation of the Escazú Agreement. In a public consultation held between January 10 and February 10, both industry groups raised concerns about significant shortcomings in the proposed framework.

The draft document, part of the National Plan for Participatory Implementation of the Escazú Agreement (PIPE) 2024–2030, aims to establish a national and regional governance system involving public, private, academic, and civil society sectors. However, the business associations argue that the proposal limits private sector representation, imposes unnecessary barriers, and fails to align with key principles of inclusion, proportionality, and efficiency.

Concerns Over Exclusion of Private Sector Representatives

A major concern raised by CChC is the disqualification criteria for private sector representatives in the future National Council of Escazú. The draft stipulates that companies previously sanctioned under Law No. 21.595 (which regulates economic and environmental crimes) or those with serious environmental violations would be ineligible.

CChC argues that this disqualification lacks clarity and fairness:

“The ineligibility clause references a law but does not specify which one. Moreover, corporate legal responsibility should not extend to governance participation, as this is not a public office.”

The organization also criticized the exclusion of companies with past environmental sanctions, calling it a “double penalty” that undermines efforts to promote compliance rather than punishment.

Excessive Bureaucracy and Representation Issues

Sonami also criticized the institutional framework proposed by the ministry, calling it excessively bureaucratic and impractical. The organization warned that:

“The proposed broad call for a National Organization Registry (including business associations, civil society, and academia), combined with a complex electoral system, could delay the formation of the Council and Committees, making participation difficult for business sectors.”

Furthermore, Sonami questioned the need for a new registry, stating that existing public registries under the Ministry of Economy already serve this purpose.

Controversial Representation and Gender Parity Rules

Both CChC and Sonami opposed the selection process for private sector representatives in the National Council. The draft assigns four seats—two for energy and mining, and two for other business associations. CChC argued that this restricts business groups’ freedom to choose their representatives, pointing out that other sectors, such as academia and civil society, are not subject to the same constraints.

Another contentious issue is the mandatory gender parity rule for council representatives. Sonami warned that:

“If gender quotas exceed the limit, lower-voted candidates must be replaced, potentially excluding the most qualified individuals—particularly in mining, where female participation remains low.”

The mining association also raised concerns about a lack of coordination between the National Council and Regional Committees, which could hinder the effective implementation of the PIPE across Chile.

Next Steps in the Escazú Agreement Implementation

Chile ratified the Escazú Agreement in 2022, committing to strengthening environmental governance and participation. In 2023, the Ministry of Environment launched an early participation process involving over 1,700 people. The PIPE plan was approved in April 2024, with governance rules under public consultation in January 2025.

Despite the criticisms, the Ministry of Environment is expected to review the feedback before finalizing the governance framework. The debate underscores the challenges of balancing environmental governance with business sector interests in Chile.

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