Chile is to ban the development of new coal-fired power plants.

The nation’s Energy Ministry and electric power generators’ association Asociación de Generadoras have agreed to not build any new coal plants without carbon capture and reduction technologies.

The companies, which include Enel, ENGIE and AES, have also agreed to form a joint working group, a schedule and the conditions for the phase out of coal-fired power plants.

Coal is said to currently account for around 40% of Chile’s energy mix.

The International Energy Agency recently said the nation has made significant process in developing its renewable energy potential.