Israel 2011 Environmental Performance Review - Highlights

8/11/2019 Israel 2011 Environmental Performance Review - Highlights

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1 Environmental Performance Reviews: Israel 2011 HIGHLIGHTS

ISRAELS POPULATION AND ECONOMIC GROWTH PRESENT SOME PRESSINGENVIRONMENTAL CHALLENGES.

Israels small territory is densely settled and water scarce.Its open economy grew at a relatively high pace for much ofthe 2000s and the population grew faster than the OECD aver-age. In spite of these increasing pressures, Israel managed toreduce emissions of major air pollutants, curb the energy andcarbon intensities of its economy, further reduce freshwater ab-stractions, and extend the number of protected natural areas

(Figure 1). However, other pressures have intensifed, includinggreenhouse gas emissions, waste generation and habitat degrada-tion. Israel faces some unique and pressing environmental chal-lenges, partly because geopolitical concerns about energy, waterand food security constrain options for environmental policies.

Figure 1. Economic growth and environmental pressures

EnvironmentalPerformanceReviews

highlights ISRAEL 2011

Although Israel was a relative latecomer in resolutely engag-ing with environmental issues, the government adopted a more

proactive approach to environmental policy formulation duringthe review period. However, delays in adopting implementingregulations often weaken the environmental legal framework.

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IT SHOULD ADOPT A WHOLE OF GOVERNMENT APPROACH TO GREEN GROWTH

To move beyond sector- and media-based environmental management, Israel should adopt a whole-of-gov-ernment approach to sustainable development and green growth that makes the most of synergies betweenenvironmental, economic and social policies. This requires fully integrating environmental and green growth con-siderations into the governments development strategies, and establishing performance monitoring and follow-up mechanisms to make sure that implementation remains on track. The government should also enhance theuse of economic assessment tools to fully take account of costs and bene ts of environmental policy and betterintegrate economic and environmental decision-making.

Figure 2. Environmentally related tax revenue

INCLUDING BY FURTHER EXTENDING THE USE OF GREEN TAXATION AND OTHERECONOMIC INSTRUMENTS

Green taxes have contributed an increasing share of overall tax revenue (Box 1). They more than doubled in realterms during 2000-09, accounting at the end of the period for 3% of GDP and 10% of total tax receipts, amongthe highest shares in the OECD (Figure 2). On the other hand, some support schemes and tax breaks, notably inthe agriculture and transport sectors, provide environmentally harmful incentives. In pursuing both its scal andenvironmental policy objectives, the government should consider extending the use of environmentally relatedtaxes and economic instruments ( e.g. , the proposed air emission levy, coastal and marine protection charges, andthe marine pollution levy), and gradually removing potentially harmful tax concessions ( e.g. , concessions on thewater extraction levy for farmers and the diesel excise duty for commercial use).

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%Trends, 1995-2009

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% of total tax revenue

million2005 USD

0 2.5 5 7.5 10 12.5 15

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%

State, 2009

% of GDP % of total tax revenue

Many local authorities have limited capacity to exercise the permitting and enforcement pow-ers they have recently acquired. Furthermore, despite recent efforts to introduce an integrat-ed approach to pollution prevention and control, the regulatory focus continues to be on individu-al environmental media and end-of-pipe measures. In 2003, line ministries began preparing sustainabledevelopment strategies. Even though their quality has been uneven, and implementation often slow, the strat-egies did foster greater awareness of the potentially negative environmental impacts of sectoral policies.


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Israel enjoys a strong position in environmental technologiesor clean tech. Renewable energy and water pollution abate-ment stand out among environment related technologies interms of patent applications. The number of such applicationshas increased rapidly in the past 15 years or so; more recently,even faster than overall patenting activity (Figure 3). The suc-cess of the Israeli clean tech sector can be partly ascribed tothe stimulation it received from environmentally related poli-cy measures, such as increases in the price of water, as well asfrom support for renewable energy, increased public R&D fund-ing, and targeted assistance programmes. The sector has be-

come internationally competitive even though domestic demandfor environmental technologies has been lower than it mighthave been, due to the relatively slow implementation of envi-ronmental regulations and standards. In recent years, the sec-tors growth has mainly been driven by increasing global demand.

Consistent with the 2011 OECD Green Growth Strategy, Israel has in-troduced policies to support the clean-tech sector as an engine foreconomic growth. The clean-tech industry is made up of relativelysmall businesses that face a variety of barriers to commercialisetheir products. Government support for the sector should focus onstrengthening the mix of policies, including better implementationof environmental policies, well-designed public procurement, andtargeted nancial support, for instance to assist the commercialisa -tion and diffusion of environment- and climate-related technologies.


AND BY PROMOTING ECO INNOVATION.


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Figure 3. Patents in selected environment- and climate-related technologies

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General environmental managementtechnologies

Total patents (right axis) Air pollution aba tement (from stationary sources)Water pollution abatementWaste management

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number ofpatents

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Israels arid and semi arid climatic conditions render water a scarce com-modity. Projections to 2050 suggest that consumption of potable waterwill increasingly exceed renewable resources. Despite growing demand,freshwater abstraction fell during the last decade, mainly due to growingreuse of treated wastewater and increased supply of desalinated water.Israels per capita water use already is the lowest in the OECD, whilst the

intensity of use as a share of renewable resources is the largest by far(Figure 4). Continued efforts will be needed to match supply with growingdemand (Box 2). In 2007, a single Water Authority was made responsiblefor the entire supply-recovery cycle of water and the national water grid.River basin management authorities were also established, though theirperformance remains uneven.

MANAGING WATER RESOURCES AND BIODIVERSITY SUSTAINABLY WILL BE ACRITICAL CHALLENGE.

Figure 4. Freshwater use, 2009

For a small country, Israel has a high degree of biodiversity, notably formigratory birds and marine species. A variety of factors pose seriouschallenges for it conservation, including habitat fragmentation, inva-sive species, over exploitation of natural resources, and pollution. Rela-tively large shares of fauna and ora species are threatened, especiallymammals. The condition of coral reef habitats has deteriorated and thesize of coastal ecosystems has decreased. However, progress has been made in reducing pressures on aquatic eco-systems from river pollution and in enhancing habitat protection. Israel has extended protection to a relativelylarge share (31%) of the total area, but natural reserves and parks individually are too small to adequately ful ltheir protection function and, collectively, are not representative of the countrys range of habitat types. Policyand institutional co-ordination also remain a challenge. The 2010 National Biodiversity Strategy recognises thateconomic development and biodiversity conservation objectives can be compatible, and provides a good basis formainstreaming biodiversity considerations into all policy domains, including through greater recourse to economicinstruments ( e.g. agri-environmental schemes, tradable shing quotas, and levies for coastal and marine protec -tion).

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m3/ capita

Abstraction per capita

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3.627.6

14.529.2

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abstraction as %of internal resources

Intensity of use

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Water prices have been signi cantly increased, and rising block tariffs pro -vide incentives to conserve water. However, further steps could be takento reduce household consumption in line with good international prac-tice. Tariffs now cover the full cost of supplying water services although,as in many countries, agricultural uses of water are still cross-subsidised.Israel should gradually increase the water tariffs for the agricultural andindustrial sectors so that they cover the full costs of providing the relatedwater infrastructure.


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BUT IMPLEMENTATION OF THE WASTE LEGISLATION NEEDS FURTHER ATTENTION.

Municipal waste generation increased by 15% during the last decade, slower than the growth of GDP andprivate nal consumption (Figure 6). Although municipal waste generation per capita decreased, it remains

well above that of many other OECD countries, as does the share of waste still disposed to land ll. Rapid indus -rial development has contributed to a corresponding growth in hazardous waste generation.

Israel does not have a binding GHG emissions reduction target under the Kyoto Protocol. In 2009, it unilaterally

set a target of reducing its GHG emissions by 20% by 2020 compared with a business as usual scenario. If achieved,this target would nevertheless result in a further increase in GHG emissions (Figure 5). Israel is implementing anational action plan for reducing GHG emissions, but should monitor progress with greater rigour. Increased gen-eration from renewables and reduced electricity consumption are expected to deliver most of the targeted GHGemissions savings. However, Israel still lacks mandatory energy performance standards for buildings. Setting aneconomy-wide carbon price by means of a carbon tax or adjusted excise duties on fossil fuels would help improvethe ef ciency of Israels climate policy. Costs and bene ts of nancial incentives for renewables should also befully taken into account.

Israels emissions of SO x and NO x show an absolute decoupling from GDP and fossil fuel use since 2000 (Figure 1),but emission intensities remain higher than those of many other OECD countries. These decreases have mainlybeen due to improvements in fuel quality and vehicle technology, as well as to the conversion of some powerplants to natural gas. Nevertheless, air pollution hotspots remain at industrial sites, as well as in major urbanareas due to increasing traf c. The Clean Air Law that took effect in 2011 should help to further reduce emissionintensities.

Figure 5. GHG emission trends and projections

Energy consumption from transport continued to increase during the 2000s, reaching 27% of nal energy consump -tion. Road transport is by far the dominant transport mode. Private car ownership and distance travelled by roadhave grown signi cantly, causing transport emissions also to increase. In addition to regulatory approaches and avehicle purchase tax (Box 1), Israel has established an electronic toll system on one of its main highways. Furtherefforts are needed to integrate transport and land use planning as well as to improve public transport networksand services as an alternative to private car use.

Greenhouse gas (GHG) emissions increased by 5% between 2000 and 2008. Israels energy mix remains morecarbon-intensive than that of many other OECD countries, largely due to high dependence on fossil fuels forelectricity generation and the lack of interconnections with electricity grids in neighbouring countries. The dis-covery of off-shore gas, and its progressive use for electricity generation since the mid-2000s, has helped mitigatethe increase in GHG emissions and contributed to a decrease in emissions of some air pollutants.

RECENT MEASURES SHOULD CONTRIBUTE TO MEETING CLIMATE AND AIR QUALITYOBJECTIVES

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Legislation adopted during the review period established the basis for a modern waste management regime in

line with good international practice. Substantial progress was made in curtailing illegal dumping and in closingillegal dumps. Ambitious goals for waste recovery, recycling and land lling were set, and new policy instruments,including a land ll levy and Extended Producer Responsibility systems, were put in place (Box 3). Owing to vari -ous organisational problems and failures in the recycling market, however, the Extended Producer Responsibilitysystems have thus far not signi cantly increased recycling rates or the recovery of municipal waste. One of themain obstacles is the persistently low cost of land lling, despite the recent increase in the land ll levy. Introduc -ing volume- or weight-based waste collection charges would allow greater recovery of municipal waste servicecosts and provide incentives to reduce waste generation. Though good progress was made in managing industrialwaste, of which 60% is recycled, waste collection infrastructure remains inadequate in some areas.


Figure 6. Waste generation and treatment

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Hazardous wastethousand

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a) Breakdown by type of treatment not available fo r 2000-03.

tonnes


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These Highlights present key facts, gures and policyrecommendations of the 2011 OECD Environmental Per-formance Review of Israel.

The Highlights are based on the report prepared bythe OECD Environment Directorate, with the contri-bution of reviewers from four examining countries:Germany, Korea, Norway and the United States. The

OECD Working Party on Environmental Performancediscussed the report at its meeting on 21 June 2011,and approved the Assessment and Recommendations.

The policy recommendations aim to provide furthersupport to Israels initiatives on:

green growth environmental management international co-operation water management biodiversity conservation and sustainable use climate change and air quality waste management

This review is part of the OECD Environmental Performance Review Programme, whichprovides independent assessments of countries progress in achieving their domestic andinternational environmental policy commitments, together with policy relevant recommenda-tions. They are conducted to promote peer learning, to enhance countries accountability to eachother and to the public, and to improve governments environmental performance, individually andcollectively. The Reviews are supported by a broad range of economic and environmental data.

Each cycle of the Environmental Performance Reviews covers all OECD member countries andselected partner countries.

The most recent reviews include: Slovak Republic (2011), Norway (2011), Portugal (2011), Japan(2010), Luxembourg (2010), Ireland (2010), Greece (2009), Finland (2009) and Turkey (2008).

Further information:

OECD Environmental Performance Review of Israelwww.oecd.org/env/countryreviews/israel

OECD Programme of Environmental Performance Reviewswww.oecd.org/env/countryreviews

Environmental Data and Indicators www.oecd.org/env/indicators

For further information on the Review, please [email protected]


Photo credits: Josef F Stuefer - Fotolia, Dmitry Pistrov - Fotolia, PROMA - Fotolia, Josef F. Stuefer Fotolia, pavelr Fotolia* All gures, tables and boxes are from the OECD publication, OECD Environmental Performance Reviews: Israel 2011 The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of suchdata by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bankunder the terms of international law.

Israel 2011 Environmental Performance Review - Highlights

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