This article analyses the role of tax measures for the protection of the environment, both in relation to local pollution and climate change, for which Chile is used as a case study. It argues that there is room for increasing the tax burden on environmental taxes, comparing the revenues that the latter represents in its GDP with the rest of OECD countries. It highlights the relevance of taking into consideration the theoretical framework and the “polluter pays” and “double dividend” principles in the design of environmental taxes, as well as for the design of rest of the alternative or complementary tax measures. It shows that Chile has been a pioneer country in Latin America by including a tax on fixed and mobile emissions. However, it argues that such tax can still be more efficient in terms of its scope and tax rate. On the other hand, it recommends to include a waste management tax, rethink its fuel tax and its specific tax on mining revenues, as neither of these take into consideration environmental aspects or negative externalities.