Minister Gila Gamliel: OECD Recommendations for Israel to Transition to Low-carbon Economy Align with Israeli Green Deal Program we Presented, Which Prioritizes Quality of Life of Israelis

An OECD report of recommendations for an Israeli transition to a low-carbon economy is the culmination of the first phase of a first-of-its-kind strategic process for Israel. The process is aimed at enabling the Israeli economy to deal with the social, environmental, and economic consequences of the climate crisis, which is also considered by leading international economic organizations to be the major global risk for humanity. It's all part of Israel's multi-sector, long-term action plan to create a vision, goals, and indicators for Israel's transition to a competitive, low-carbon, thriving economy by 2050.

Key points of the report were presented during an online event on July 29th. Participants included Environmental Protection Minister Gila Gamliel, OECD Deputy Secretary-General Masamichi Kono, MoEP Director General David Yahalomi, Israel Planning Administration Director General Dalit Zilber, and other senior MoEP and OEC officials.

Environmental Protection Minister Gila Gamliel: ""Crises lead to innovation and creativity. We need to see how we emerge from the coronavirus crisis, and lead Israel to a low-carbon economy that is dealing with the social, environmental, and economic consequences of the climate crisis. The OECD's recommendations are in sync with the principles of Israel's Green Deal Program that we presented, which prioritizes quality of life of the [Israeli] public. The OECD report gives us excellent direction in this regard."

Concrete policy recommendations aimed at reducing greenhouse gas emissions and strengthening the economy focused on three main sectors: energy, transportation, and residential. The report connects the realization of Israel's international commitments as part of the global trend towards low-carbon, and the resulting opportunities for green growth and improved quality of life in Israel.

The OECD said 2 major actions were required by Israel:

• Enshrine the vision and goals of its LT-LEDS (Long-term Low Emissions and Development Strategies) into national legislation.
• Embed carbon pricing into the economy, using an approach that takes into account well-being impacts of such a policy, so that those effects can be managed in a cost-effective manner.

It also made pointed recommendations for policy packages for the aforementioned energy, transportation, and residential sectors:

Key recommendations for the energy sector:

• Prioritize renewable energy over fossil fuel generation
• Align the energy tax system with the social costs and address energy poverty
• Scale-up renewable electricity deployment
• Improve power system flexibility to support grid integration of renewables
• Improve energy efficiency

Key recommendations for the transportation sector:

• Align the taxation of private car use with its environmental damages and external costs
• Manage road space and prioritise public and active transport modes
• Focus on accessibility instead of mobility to unlock important opportunities
• Widen financial capacity to ensure sustainable transport budgets
• Devolve responsibility, develop capacity and improve coherence

Key recommendations for the residential sector:

• Make cities more compact, while increasing housing supply, to deal with population growth
• Require structures to meet green building standards
• Accelerate the establishment of green, sustainable neighborhoods
• Steer smart growth, both in existing urban cores and in peripheral areas
• Decrease financial burden of municipalities and attract innovative sources of finance