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Leveraging Local Policy for Sustainable Finance: Aligning Investment, Environment, and Community Development in the Chilean Mining Sector  

Regina Ayala and Grace Vera 

Andalus Committee New York Office

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This policy report, released by the Andalus Committee’s New York Office, examines Chile’s mining sector in the context of the global clean energy transition and rising demand for critical minerals. It analyses the political, economic, and environmental challenges associated with large-scale copper and lithium extraction, as well as the role of foreign direct investment in shaping development outcomes. The report highlights key issues, including environmental degradation, community impacts, and uneven benefit distribution, while reviewing Chile’s policy frameworks for attracting and managing sustainable finance. It concludes with policy recommendations to strengthen regulatory capacity, align investment with environmental protection, and enhance local infrastructure and community well-being, supporting both long-term economic resilience and equitable development.

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