SCX: Heading to a local carbon market September 29th, 2011

Where we started? 2  Chile is the largest CER per-capita generator globally.  It was clear that aggregated reductions under the CDM will not meet the required scale.  Our country itself faces a challenge of reducing our exports’ carbon footprint.  New approaches were needed and today we see “the pretty, not the weird lady in the picture”.

Stick and/or carrot? 3  Fighting climate change should be addressed by the “traditional” way? Apparently not.  We –as George Soros- believe that if we free the private sector’s power entrepreneurship to solve the problem, the force will be in motion sooner and stronger.  Fear paralyzes. Hope mobilizes  We had to have a message generating hope and delivered it using private sector’s language

Our perspective 4  SCX attracted key people within some of the leading companies in Chile, with Latam expansion potential, and seduce them to build an industry of emissions’ reductions in the region and for creating a domestic demand.  If the certificates are not exported, Chile would not need a regulation.  So, leadership, passion, innovation, entrepreneurship and a little luck have taken us to where SCX is today.

Where are we? 5  Started transactions in August 2011  Developed and implement a “CO2 Neutral” standard, label included.  Companies started the journey… we have a quite fair sales pipeline developed  This motion has already spread to others… not only SCX’s partners are part of it

The market is moving: Example of Concha y Toro 6

Thank you! 7 Carlos Berner, CEO (56-2)

SCX: Heading to a local carbon market September 29th, 2011

The market is moving: Corpbanca’s example 9