Chile’s electric cable car PPP project is the first sovereign Asset Certification worldwide

Certification awarded to the plans and design of the Concesión Teleférico Alto Hospicio–Iquique

Key highlights:

• Plans and designs of the Concesión Teleférico Alto Hospicio–Iquique Project have been Climate Bonds Certified, confirming alignment with science-based criteria for sustainable urban transport.
• First sovereign Asset Certification in the world, and the first Certification involving a cable car transit system.
• The project will deliver a 5.7 km electric cable car system, significantly improving connectivity between the municipalities of Alto Hospicio and Iquique and providing a fast, efficient, zero-emission mobility alternative for the region.
   

Santiago, 18 December 2025, 9am — Climate Bonds Initiative is pleased to announce the Asset Certification of the Alto Hospicio–Iquique Cable Car Concession Project, marking a historic milestone as the first Public-Private Partnership (PPP) project in Latin America and the Caribbean to receive this Certification under the Climate Bonds Standard and Certification Scheme for a new electric cable car system.

The Certification follows a comprehensive verification under Climate Bonds Standard v4.3 conducted by PCS, which Climate Bonds has assessed and deemed fully satisfactory. The Inter-American Development Bank (IDB) played a key role as operative intermediary through technical cooperation with the Chilean Government, supporting the engagement process with the verifier and Climate Bonds. This achievement was made possible by strengthening sustainability requirements in the bidding documents developed by General Directorate of Concessions supported by IDB’s PPP advisory, as part of a broader effort that began when Chile set out to close sustainability gaps in infrastructure based on the findings of the Infrascope diagnostic, developed by IDB and The Economist Impact.

While Asset Certification is often associated with existing physical assets, the Climate Bonds Standard also allows for the Certification of planned projects based on detailed designs and feasibility studies, provided they demonstrate credible alignment with science-based eligibility criteria. The Alto Hospicio–Iquique Cable Car Concession represents the first-ever Certification for an urban cable car system worldwide, standing as a pioneering example of forward-looking, low-carbon urban mobility infrastructure.

Transforming Mobility in Northern Chile

The project, developed under Chile’s Ministry of Public Works, is part of the country’s strategy to strengthen sustainable transport infrastructure. Designed to improve connectivity between the municipalities of Alto Hospicio and Iquique, the cable car system will deliver an efficient, zero-emission transport alternative to be constructed, operated, and maintained under the highest international standards of safety, service quality, and passenger comfort.

Given Chile’s mountainous landscape, steep inclines, and coastal geography, cable cars present a highly effective and appealing alternative for public transport in many regions of the country.

Located in the Tarapacá Region, Province of Iquique, the system features:

• A 5.7 km urban monocable detachable gondola line;
• Integrated station infrastructure including ticketing, accessibility features, platforms and technical rooms, complemented by associated public-space improvements.
• The system is designed to transport up to 2,000 passengers per hour per direction at a maximum speed of 6 m/s, significantly reducing travel times and offering a sustainable mobility alternative to road-based transport.
• The project also includes provisions for future integration into the metropolitan public transport system of the Tarapacá Region.

Andrés Felipe Sánchez, Head of Latin America and the Caribbean at Climate Bonds Initiative, said:

“Chile continues to lead the region in climate-aligned infrastructure. Certifying the plans for the Alto Hospicio–Iquique electric cable car system as the first sovereign asset in LAC, sets a new benchmark for innovation in sustainable mobility. This project shows how governments can use forward-looking Certification to finance modern, resilient, zero-emission transport systems that deliver real benefits to communities while advancing national climate goals.”

Katharina Falkner Olmedo, Country Representative in Chile, Inter-American Development Bank, added:

"This first sovereign Climate Bonds Asset Certification in the world underscores IDB’s unwavering commitment to strengthening sustainability in infrastructure across Latin America and the Caribbean. From early-stage preparation to financing, we work closely with governments to embed robust social and sustainability standards. Chile’s leadership in advancing efficient and sustainable PPPs sets a benchmark for the region and opens the path for others to follow. Latin America and the Caribbean continue to stand as a global reference in innovative, resilient infrastructure development, and this milestone is a powerful example of what public-private collaboration and vision can achieve."

Janett Burga, General Manager, PCS, commented:

“This certification represents a meaningful advance for climate-aligned infrastructure in Latin America. At PCS, we are proud to have supported this process through independent assurance that strengthens transparency, technical rigor and confidence in sustainable investment decisions."

This milestone reinforces Chile’s commitment to sustainable development and demonstrates the increasingly central role of low-carbon transport solutions in sovereign climate finance strategies.

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Contact for interviews and further information:

Leticia Braga

Communications Specialist, Climate Bonds Initiative 

leticia.braga@climatebonds.net

About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.

About PCS: Pacific Corporate Sustainability (PCS) is a regional advisory firm specializing in sustainable finance, ESG assurance and climate-related services across Latin America. PCS supports public and private sector clients in advancing transparency, technical robustness, and alignment with international sustainability standards to mobilise credible climate investment.