Chile Battery Project First to Sell Paris Carbon Credits

Chile's Colbún just proved that giant batteries fighting climate change can now earn money while doing it, opening a new path for clean energy funding around the globe.

The energy company received authorization to sell carbon credits from its Diego de Almagro Sur battery storage system in Chile's Atacama region. It's the first battery project anywhere in the world approved under Article 6.2 of the Paris Agreement, the framework that lets countries cooperate on reducing emissions.

The system stores 912 megawatt-hours of renewable energy, enough to power thousands of homes when the sun isn't shining. Instead of just selling electricity, Colbún can now also sell credits that prove they're reducing carbon emissions by storing clean energy that might otherwise go to waste.

Daniel Gordon, Colbún's sustainability manager, says the two-year approval process taught them valuable lessons. Getting Chile's and Switzerland's environment ministries to agree on standards took patience and flexibility. The technical work was intense, requiring custom methodology to prove exactly how much carbon the batteries save.

The company is already building 700 megawatts of storage capacity across multiple projects. With this carbon credit model now proven, future battery projects have a clearer path to funding.

The Ripple Effect

This breakthrough matters far beyond one battery in Chile's desert. Energy storage is critical for renewable energy to work reliably, but batteries cost a fortune to build. Carbon credit revenue can make these projects financially viable in their early years.

The model also strengthens cooperation between countries on climate goals. Switzerland can count these emission reductions toward its climate commitments while Chile builds infrastructure it needs. Both countries benefit, and the planet gets more clean energy storage.

Colbún has nearly 2,000 megawatts of renewable projects in development, waiting for the right market conditions and customer agreements. As carbon markets mature under the Paris Agreement, more of these projects could move forward faster.

Other energy companies worldwide are watching closely. If carbon credits can help finance batteries in Chile, the same approach could work in dozens of countries struggling to fund their clean energy transitions.

The path from idea to approval took dedication, but it's now open for others to follow.