Entrepreneurship capacity-building for communities affected by coal plant closures in Chile
Project overview
Coal-fired power generation accounts for approximately 25% of Chile’s greenhouse gas emissions, making it a major contributor to the country’s climate footprint. In response, the government launched a decarbonization plan in 2019 to retire or repurpose coal-fired power plants – starting with eight units by 2024 and targeting a full phase-out by 2040 through voluntary agreements with operators.[1] This policy is supported by the 2022 Framework Law on Climate Change, which sets a national target of carbon neutrality by 2050.
In parallel, the Ministry of Energy developed a Just Energy Transition Strategy emphasizing local economic development, social inclusion and participatory governance.[2] As part of this strategy, the ministry partnered with SERCOTEC, an agency under the Ministry of Economy, to launch an entrepreneurship capacity-building programme for workers and families affected by coal plant closures. The goal was to enable affected households to develop alternative income streams and contribute to the broader energy transition.[3]
Approach
The initiative was launched in 2024 as part of regional socio-ecological transition action plans in the Antofagasta, Valparaíso and Biobío regions. The programme targeted former coal sector workers, their spouses or civil partners and adult children living in impacted communities, with or without pre-existing business registration.
Delivered in two phases, the programme began with in-person training on business model development, pitching skills and green economy principles. Participants then advanced to the implementation phase, receiving professional advisory support and access to startup subsidies for business creation. Emphasis was placed on supporting family-run businesses that could supplement household income and contribute to local economic resilience.
The execution period for this programme is March 2024 to February 2025, allowing sufficient time to pilot the approach, assess impact and refine support structures.
Business and economic value
This programme offers a grounded example of how just transition efforts can deliver local economic benefits while supporting national decarbonization goals. With a total investment of 220 million Chilean pesos, it supported the launch of 50 new entrepreneurship projects across the three participating regions. This included $92 million allocated to Biobío (23 projects), $72 million to Antofagasta (19 projects) and $56 million to Valparaíso (eight projects).
Beyond direct job creation, the programme contributes to household income stability and fosters local economic regeneration in regions previously reliant on coal. Structured training and advisory services ensure that beneficiaries are equipped not only to start businesses, but to sustain them – laying a foundation for long-term economic diversification.
Importantly, the initiative is closely tied to Chile’s broader energy transition goals. By embedding entrepreneurship support within coal phase-out strategies, the government has created a model for pairing environmental ambition with inclusive development. This strengthens public support for climate policy and helps ensure that communities historically dependent on fossil infrastructure are active participants in shaping the post-carbon economy.
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