Environmental policy in Chile has developed rapidly in recent years, and the country has become a regional leader in renewable energy, climate change policy, recycling, and nature conservation. This contrasts with the previous neglect of environmental issues in the country and its depiction as a ‘green laggard’ (Orihuela, 2014: 251) within Latin America. In this article the recent development of environmental policy in Chile is reviewed and five factors affecting this development are analysed: international influences, institutional legacies, a window of opportunity opened by environmental movements, policy entrepreneurship, and business power.