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The authors argue that the IFC's accountability mechanism is structurally flawed and that the Management Action Plan is irrelevant to affected communities because it focuses on internal procedural improvements rather than remediating concrete environmental and social damages. They highlight ongoing ecological crises, such as the Maipo River failing to reach the sea in January 2023, and criticize the IFC's 'irresponsible' exit from the project in 2018, which they claim was used to evade responsibility for damages and reprisals against complainants.

The document argues that the MICI's decision to close the Alto Maipo case is premature and fails to hold the Inter-American Development Bank (IDB) accountable for environmental damage and human rights violations. It highlights severe reprisals against environmental defenders, including cyber-intelligence surveillance by AES Andes, and criticizes the IDB Invest's 'cut and run' divestment strategy, which the authors claim avoids responsibility for remediation. The authors emphasize that the project accelerated desertification in the Maipo River basin, threatening the water supply for over eight million people in Santiago, and call for a formal 'Responsible Exit' framework and a comprehensive reparation mechanism within the IDB's accountability system.

The statement highlights the failures of the UN Clean Development Mechanism (CDM) through examples of hydroelectric projects in Chile and Panama that caused environmental destruction and human rights violations. It calls for mandatory stakeholder consultations and independent grievance redress mechanisms in future carbon markets under the Paris Agreement to ensure a just transition.

The Alto Maipo Hydroelectric Project (PHAM) is a large-scale run-of-the-river project in Chile with an installed capacity of 531 MW and an estimated annual output exceeding 2,100 GWh. Despite being pitched as a public good, the project faces significant opposition due to its potential to reduce the flow of the Yeso, Volcán, and Colorado Rivers by up to 60%, threatening drinking water for Santiago's 7 million residents and irrigation for 120,000 hectares of farmland. Financially, the project has seen costs rise to US$2.4 billion, with the Grupo Luksic consortium withdrawing in January 2017 at a loss of $350 million. The project is funded by several multilateral banks, including the IFC (US$150 million) and the IDB (US$200 million), both of which are facing complaints regarding violations of environmental and social policies. Environmental concerns include accelerated desertification, erosion of riverbeds, and risks to protected areas like the Glacial Natural Monument. The Chilean government has penalized the project for 14 separate violations of environmental norms.

The Alto Maipo Hydroelectric Project in Chile, verified under the Kyoto Protocol's Clean Development Mechanism (CDM), is cited as a failure that violated multiple human rights and environmental standards. The project involves rerouting three tributaries of the Maipo River through tunnels in the Andes Mountains, which the document claims threatens the drinking water of 7 million people in the Santiago metropolitan area and risks reducing river flows by 60-90%. Specific violations include threats to the rights to a healthy environment, water, life, health, food, adequate housing, work, and cultural participation. The document recommends that the project be removed from the CDM list and its construction halted. It further urges COP25 negotiators to ensure that Article 6 of the Paris Agreement incorporates robust social and environmental safeguards and independent grievance mechanisms to prevent similar outcomes in future 'sustainable development' projects.

The Alto Maipo Hydroelectric Project in Chile, funded by the IFC, IDB, and OPIC, resulted in severe environmental degradation and human rights violations, including threats to the water security of millions in Santiago. Despite these harms, the project's financiers used procedural loopholes and premature divestments to avoid accountability. However, strategic campaigns by Chilean activists and CIEL leveraged Independent Accountability Mechanisms (IAMs) to force institutional changes, resulting in the repeal of the IDB's legal exclusion clause and the creation of the IFC's Remedial Action Framework and Responsible Exit Approach.