Regulatory and institutional challenges to green hydrogen deployment in Chile

Chile has been internationally recognized as one of the most promising locations for large-scale green hydrogen and derivatives production due to its exceptional solar and wind resources. However, despite this favorable context and the existence of a National Green Hydrogen Strategy, several large projects have recently been delayed, downsized, or cancelled. This short communication analyses key institutional and regulatory bottlenecks affecting green hydrogen deployment in Chile, focusing on permitting delays, insufficient investment incentives compared to competing regions, and unresolved territorial and sectoral conflicts. Recent high-profile cases are discussed as illustrative examples. The analysis suggests that without rapid institutional reforms, particularly streamlined permitting, coordinated spatial planning, and competitive incentive mechanisms, Chile risks losing its early-mover advantage in the global green hydrogen economy. Policy-relevant recommendations are proposed to address these challenges in the short term.