As the world increasingly turns to green energy, Chile faces a “historical opportunity” for economic growth, the country’s minister of finance said at a recent Toronto conference.
The South American nation has vast resources and unique advantages for producing renewable energy, including green hydrogen, copper, lithium, solar power and wind, Chile’s Minister of Finance Mario Marcel said at the investor-focused event late last month.
“Chile is a source of raw materials that are essential for electromobility, for reducing… gas emissions, and also a country undergoing a major shift in its energy matrix that would allow us to not only become considerably less dependent on imported fossil fuels but actually to be an exporter of energy through green hydrogen,” he said.
Marcel’s comments came during the Chile Day event, which focused on highlighting the country and fostering connections with investors, authorities and other stakeholders. Scotiabank sponsored the three-day event, which was split between New York on June 28 and Toronto on June 28 and 29.
Mario Marcel, Chile’s Minister of Finance
It marks the first time the Chile Day event was held in Canada.
"We are thrilled about the opportunities that the country has to offer and the potential that the country has, but also about how we bring together Canada and the Americas and Chile as part of the future of the region,” said Francisco Aristeguieta, Scotiabank’s Global Head of International Banking, in his introduction of the Minister at the Chile Day conference. “We are also very enthused about the changes that are (happening) around regulation and how we can bring more investment into Chile."
Scotiabank, the third largest bank in Chile with more than 6,000 employees, is proud to help connect Chilean companies with other firms throughout the Americas, Aristeguieta added.
“We're incredibly proud to have a substantial operation in Chile,” he said.
Marcel was one of several Chile ministers participating in the conference, organized by InBest, a non-profit organization that promotes investment and capital markets in the country.
Canada’s Deputy Prime Minister Chrystia Freeland spoke at the conference, as well as other Canadian government officials. Representatives from various Canadian organizations also participated, including the Mining Association of Canada and the Canadian Council for the Americas.
In his presentation, Finance Minister Marcel outlined the vision of the Chilean government – which was elected in 2022 – to jumpstart economic growth that has lagged over the past 15 years and move the country forward.
Marcel also discussed how Chile is ramping up investment to seize the opportunities presented by the greening of the world economy and the shift to digital.
We have a historical opportunity in front of us to make the country grow in a more inclusive and a more sustainable way over time.”
The Chilean economy is now “out of the woods” of the COVID-19 pandemic and can concentrate on how it can foster economic growth in the short and medium term while addressing the Chilean people’s needs as well, Marcel said.
“We have enriched quite substantially our policies to enhance economic growth, investment and employment, and we continue doing so without having to sacrifice the commitments to Chilean people as long as we can mobilize fiscal space to address their need…. We have a historical opportunity in front of us to make the country grow in a more inclusive and a more sustainable way over time."
According to 2021 data from the Central Bank of Chile, Canada was the main origin of foreign investment in the country, with an investment stock of US$33.21 billion, representing 13.2% of foreign investment.
Chile has long been a destination of choice for Canadian investment capital, said Michael Kruse, Head of Global Banking and Markets, U.S., during the New York portion of the Chile Day conference.
“We believe there is significant upside for Chile-based business for years to come,” said Kruse. “As we continue to build our business in the U.S., Scotiabank is uniquely positioned to support our clients in seizing these opportunities with leading, innovative solutions; deep expertise of global and local markets; and seamless execution.”