Notice

Energy transition: UK - Chile memorandum of understanding

Published 3 October 2024

The Ministry of Energy of the Republic of Chile and the Department for Energy Security and Net Zero of the Government of the United Kingdom of Great Britain and Northern Ireland (“UK”) (hereinafter referred to jointly as the “Participants” and in the singular as “Participant”), wish to further promote friendship and cooperation between Chile and the UK in the field of energy transition.

Recognising that the world must remain on track to keep a global temperature rise below 1.5C to avoid damaging climate impacts and that both countries have committed to reach net zero emissions by 2050;

Building upon a history of collaboration on energy issues and the 2021 UK-Chile Joint Declaration on Low Carbon Hydrogen;

Seeking to strengthen energy cooperation between both countries and to create conditions that attract investment from UK companies into the just energy transition in Chile;

Convinced of the importance of global energy transition to shift towards clean energy systems; and

Realising such cooperation and development can be obtained by the Participants through the implementation of this Memorandum of Understanding (hereinafter referred to as “MoU”),

The Participants have reached the following understanding:

Paragraph 1: Objective

The purpose of this MoU is to promote and strengthen the Participants’ collaboration and cooperation on the energy transition between the Participants to advance sustainable development on the principles of equality and mutual benefits.

Paragraph 2: Areas of cooperation

Each Participant will, subject to the laws, rules, regulations and national policies governing the subject matter that apply in its territory, endeavour to encourage and promote strategic and technical cooperation for mutual benefit in areas set out below:

1. Low carbon hydrogen and its derivatives

The Participants reaffirm their intention to collaborate to facilitate the growth of low carbon hydrogen, including green hydrogen sourced from renewable energy, acknowledging the crucial role that low carbon and its derivatives will play in enabling the UK and Chile to become net zero emitters by 2050. In this context, the Participants note the common interests in areas including standards and certification, training and capacity building, research and development, financing schemes, demand creation, and reaffirm their existing commitments to drive global collaboration in low carbon, including green hydrogen and its derivatives, including as co-leads of Mission Innovation’s Clean Hydrogen Mission.

2. Renewable energy, with a particular focus on offshore wind

The Participants recognise the world-leading capabilities of the UK and Chilean renewable energy sectors and are committed to collaborate to drive further progress in this area. They affirm the importance of specific UK-Chile collaborations on offshore wind in relation to the sharing of expertise, experience, good practice and lessons learned in support of the development of the offshore wind sector in Chile and to facilitate commercial partnerships in this and the wider renewables sector.

3. Carbon pricing

The Participants recognise the importance of designing and implementing carbon pricing instruments, such as emissions trading systems and carbon crediting mechanisms, as enablers of the energy transition and a means to deliver the Participants’ respective Nationally Determined Contributions under the Paris Agreement.  In addition, they state the importance of a technical information exchange and sharing of best practice between both Participants to drive progress in the development and implementation of these instruments.

4. Energy security and climate resilience

a. The Participants acknowledge that temperature increase, climate variability, extreme hydrometeorological events, variations and uncertainty in power generation and sea level rise, among others, directly affect the different segments of the electricity and fuel
subsectors. These consequences have direct effects on the security and quality of energy supply, which in turn has negative impacts on people’s well-being and access to their basic rights.

b. Thus, the Participants affirm the importance of working together to help deliver the required transformations in the energy sector, recognising the importance of secure and resilient energy systems, that are underpinned by diverse supply chains of clean energy technologies and minerals.

5. Any other areas of energy cooperation, to be determined by the Participants

The Participants acknowledge the accelerating and dynamic status of the energy transition in the global landscape, and agree to maintain regular dialogue, with potential coordination with the private sector, in order to ensure specific opportunities and areas of collaboration are reviewed on a regular basis.

Paragraph 3: Form of cooperation, collaboration and knowledge sharing

The Participants plan to encourage cooperation, collaboration and knowledge-exchange in energy transition-related matters for mutual benefit. The cooperation described in this MoU may include the following:

1. Exchange of publicly available scientific and technical information; 2.Exchange and training of policy, technical and academic experts, including those from government, industry and other non-government sectors, at respective universities, research facilities and innovation centres;
2. Support and encouragement of academia, research and development institutes and the private sector to work together in joint projects and exchange expertise;
3. Facilitation of dialogue through organisation of conferences, workshops and other meetings on agreed topics;
4. Encouragement of private sector companies and industry bodies to cooperate closely and to explore further business opportunities;
5. Provision of technical assistance and other support through relevant projects, subject to the necessary approvals; and
6. Other forms of cooperation as may be determined jointly by the Participants in writing. Any collaboration will be implemented with a gender perspective, inclusion, and respect for human rights.

Paragraph 4: Implementation

The Participants at working level will implement cooperation in the areas outlined in this MoU, as jointly decided and within the limits of the resources and capabilities available. They will develop and implement more detailed workplans on the areas of cooperation set out in this document to facilitate and accelerate cooperation, including for example; policy roundtables, skill-sharing events, trade missions and industry-focused events. They may convene the institutions or agencies, public or private, that they deem appropriate as part of these plans.  These workplans will be developed independently of one another and the pace of development of one workplan will not hinder progress on another area of cooperation. 

Paragraph 5: Financial arrangements

1. The Participants recognize that the completion of activities under this MoU is subject to the availability of their respective resources.
2. This MoU does not involve or envisage the transfer of financial resources between the Participants.
3. The Participants accept that all costs arising from the cooperation activities under this MoU should be assumed by the Participant who incurs them, unless otherwise determined jointly by the Participants in writing.
4. Each Participant intends to conduct the activities provided in this MoU subject to all applicable laws and regulations, as well as any processes applicable to budgetary assignment, resource availability and deployment of personnel. The Participants intend to establish jointly, in writing, the details for the financing of each particular cooperation activity before commencing such activity.

Paragraph 6: Confidentiality and intellectual property rights

1. Each Participant will not use or disclose any data or other information exchanged on the basis of this MoU except for the purpose(s) for which they were provided and in accordance with the laws and regulations applying to that Participant.  Except as required by those laws and regulations, such data and information, including the results of any joint research, will not be disclosed to a third party without the prior written consent of the Participant who provided the data or information.  This Paragraph will continue to have effect even after the expiration of this MoU.
2. Any intellectual property rights in data or other information provided under this MoU or arising out of the resulting cooperation activities will be protected in accordance with the laws and regulations in each Participant’s territory and in line with the provisions of any international agreements to which the Participants have acceded. If further arrangements are considered necessary, they will be set out in a separate document to be formulated between the Participants and/or the persons or organisations involved.

Paragraph 7: General provisions

1. The Participants intend to amicably resolve any question concerning the interpretation or implementation of this MoU through mutual consultation and discussion.
2. This MoU represents an expression of the Participants’ intention in good faith to engage in the collaboration described. It does not constitute a legally binding agreement nor create any rights of obligations under domestic or international law.
3. Nothing in this MoU affects the Participants’ rights and obligations derived from international agreements and conventions to which they are parties or their obligations under domestic law.
4. This MoU is applicable from the date of its signature and will continue to have effect for a period of 3 years. It will be extended automatically for successive periods of 3 years, unless one of the Participants notifies the other in writing of its intention to terminate its participation at least 3 months prior to its expiration.
5. A Participant may end its participation at any time and should inform the other Participant writing of its intention to end its participation on 3 months’ notice.
6. This MoU may be amended by mutual written consent of the Participants at any time. The amendments will come into effect upon signature by both Participants.

The foregoing record represents the understandings reached between the Department for Energy Security and Net Zero of the United Kingdom of Great Britain and Northern Ireland and the Ministry of Energy of the Republic of Chile upon the matters referred to therein.

Signed in duplicate on 3 October 2024 in Foz do Iguaçu, Brazil in the English and Spanish languages, both texts having equal validity.

For the Department for Energy Security and Net Zero
Kerry McCarthy MP
Parliamentary Under-Secretary of State for the Department for Energy Security and Net Zero

For the Ministry of Energy of the Republic of Chile
Diego Pardow
Energy Minister for the Ministry of Energy