A plan by Chile’s new center-left Michelle Bachelet government to levy the first carbon tax in South America is making its way through the nation’s Congress but, in the process, prompting widespread criticism from the business sector. The Bachelet government, which began its four-year term in March, introduced sweeping tax-reform measures that included several green levies as a way to raise government revenue, curb pollution and shift more of the tax burden to businesses. “This reform is an advance toward establishing an environmental equity agenda,” says Marcelo Mena, Chile’s vice-minister of the environment. “As well, it sends signals about what kind of electric [power generation] projects we want, recognizing the value and damage caused by contamination in the quality of life... [Log in to read more]