Complexities and challenges:
Israel post-October 7th
October 7th and the ensuing war have shaken up Israel’s national agenda, in ways that create challenges and opportunities for climate action.
The country is focused on defense, rehabilitation of war-torn communities, and economic stabilization. Climate and environmental programs, already low priority, have been further delayed or suspended. Yet the need for Israel to address climate issues is becoming steadily more apparent.
According to the Israel Meteorological Service (IMS, 2024), Israel has warmed 0.6 °C per decade – nearly triple the global average – in the last five decades. Rainfall has declined. The 2023–24 season was officially classified as severe drought, particularly in northern Israel, compounding economic and social pressures.
Climate as a national security challenge
The October 7th attacks were made possible by tragic failures of catastrophe planning. The subsequent war revealed further vulnerabilities in energy and food systems. Israel’s centralized grid was attacked and suffered localized outages; rising heat will increase cooling demand by 8–10 % per °C of average warming. Distributed solar, local storage, and demand-management are vital to improving Israel’s climate security.
Israel’s food security is similarly fragile: Israel imports over 80 % of its grain from climate-exposed regions in South America, Eastern Europe, and East Asia. The Ministry of Agriculture is developing a National Food Security and Supply Chain Resilience Plan integrating climate-risk modelling.
Rebuilding the North and South: a generational opportunity
Reconstruction after the 2023–25 war offers a rare chance to rebuild with higher climate resilience standards. The State Comptroller recommends embedding adaptation and low-carbon standards in all reconstruction programs: renewable energy and storage microgrids, large-scale solar capacity, grid modernization, storm-water capture, and low-carbon construction.
Philanthropies including the Diane and Guilford Glazer Foundation, Roadburg Foundation, and Yad Hanadiv are partnering with municipalities to pilot “climate-smart recovery” models. Aclima and NZO are among the excellent organizations bringing renewable energy and climate resilience into the work of rebuilding the North and South of Israel.
Climate diplomacy: building regional cooperation
While the war has seriously damaged Israel’s relationships with regional neighbours, climate cooperation remains a crucial platform. The Arava Institute, through its Center for Applied Environmental Diplomacy, EcoPeace Middle East, which builds regional cooperation around water and energy, and the Mitvim Institute think tank all demonstrate how environmental cooperation can repair trust and shared stability. Philanthropic and governmental collaboration can expand these efforts through data-sharing, and early-warning systems.
There is a clear medium-term need to increase the velocity of best practice on climate preparedness, and to develop regional finance mechanisms to increase climate resilience.
Post-October 7th Israel faces intersecting crises: post-war recovery and worsening climate impacts. Philanthropists can:
- Invest in climate-smart rebuilding of the north and south.
- Support distributed energy and resilient food systems.
- Strengthen regional climate cooperation as a pathway to peace and stability.
- Put resources into improving Israel’s medium-term preparedness for extreme weather events.
How’s Israel doing on climate mitigation?
Israel is moving toward a low-carbon economy, but not fast enough.
By 2030, Israel has committed to reduce total emissions by 27% (vs. 2015) and to reach 30% renewable electricity; by 2050, it is aiming for a net-zero economy with an 85% reduction in electricity-sector emissions. But in 2024 the Ministry of Environmental Protection (MoEP) warned that “Israel is not projected to meet its 2030 targets,” estimating that it was on track for only a 19% emissions reduction under existing and planned measures.
Mitigation across sectors remains uneven
Super Pollutants
Rising demand driven by population and economic growth makes renewable energy and storage critical for both mitigation and energy security. Installed renewable capacity stands at 7.4 GW (about 15% of total energy use) but grid constraints, insufficient storage, and bureaucratic delays mean Israel is not on track to reach 30% renewable electricity by 2030.
Transport
Transport is responsible for roughly 23% of emissions, and has seen some progress: rail electrification, metro development, support for electric bus fleets, and tax breaks for electric vehicles. Still, the transition is slow. Stronger measures – such as congestion pricing, clearer tax incentives for zero-emissions vehicles, and faster public transport expansion – are needed.
Industry
A carbon tax was first passed in 2021, but it has taken until 2026 for it to be implemented, and its provisions include significant opt-outs. A key driver for the tax is the EU’s Carbon Border Adjustment Mechanism (CBAM). Unless Israel itself taxes carbon locally, the EU will charge a carbon border tax when Israeli goods are exported to Europe.
Buildings sector
Israel has had a Green Building Standard since 2020, but lacks a roadmap to net zero. Investment here offers strong co-benefits: every 1 billion NIS spent on retrofits is projected to create 1,300 jobs and improve energy efficiency by 20–25%.
Waste and the circular economy
Methane from landfills accounts for about 9% of emissions. Low recycling rates and slow waste-to-energy deployment hinder progress, despite the potential to cut up to 3 million tonnes of CO₂e by 2030.
Economic and policy instruments
These remain insufficient. The OECD highlights the need for comprehensive carbon pricing, green fiscal incentives (tax credits, PPPs, concessional finance), and integrated climate data systems.
A key strategic role of philanthropy should be to catalyze systemic change.
Yad Hanadiv’s support for the Israel Democracy Institute successfully helped shape Israel’s Nationally Determined Contribution (an aspirational, though realistic, internationally agreed emissions reduction target.) The Agrivoltaic Forum, with GrowingIL, a national zero-carbon buildings roadmap, and Climate Security Mapping, are all early-stage interventions that could have significantly leveraged impact in Israel.
Case Study: PAI (Philanthropy for Israeli Climate Mitigation)
Founded in 2023, PAI was created to address the lack of coordinated, mitigation-focused philanthropy in Israel. Working across energy, industry, transport, agriculture and land use, and construction, PAI designs targeted, cross-sector interventions rather than funding long-term organizational capacity. As Director Noa Yayon puts it,
“Philanthropy shouldn’t see itself as the manager of the field,
but as a player in it.”
PAI’s goal is to use strategic philanthropy to help unlock national collaboration on climate.
Building climate resilience and security in Israel
Israel is already starting to live with the effects of climate change. Repeated heatwaves, floods, and wildfires make clear that this is no longer a future risk but a present reality.
Since the 1990s, the annual number of days above 35 °C has risen by roughly 30%, and the frequency of heatwaves has doubled.
These changes are already straining public health, agriculture, energy systems, and infrastructure.
Each major heatwave causes an average of 45 excess deaths, primarily among older adults, with risks set to intensify as extreme heat becomes more frequent and prolonged.
Flooding presents a parallel threat. In 2025, the State Comptroller warned of “a rise in the frequency and severity of flood events causing major damage to infrastructure and public safety,” while highlighting that “no single entity consolidates or coordinates the data.” This fragmentation undermines prevention and evidence-based planning.
Climate Impact On Israel
A small, import-dependent nation in a warming world
Israel’s climate vulnerability extends beyond its borders. Importing over 90% of its grains and food, it is exposed to climate shocks abroad. An INSS (2024) analysis projects 10–15% yield declines in key import regions – the Black Sea basin, South America, and Southeast Asia – under high-risk scenarios.
Climate security for Israel is both local and global: disruptions abroad can quickly hit Israeli ports and households. Resilience requires diversified imports, strategic food reserves, strengthened local production, climate-adapted crops, and systematic climate-risk assessment in national planning.
From partial preparedness to systemic change
Despite multiple plans and research initiatives, Israel’s climate security efforts remain fragmented. Economic, social, and infrastructure challenges are addressed in silos, without a unified strategy. A systemic shift is needed, enabling cooperation across government, municipalities, business, academia, and philanthropy.
Philanthropy can and should play a catalytic role: not replacing government, but building coordination, knowledge, and shared tools. Systemic change may not require new institutions, but it does require mechanisms that consolidate knowledge and translate that knowledge into policy.
| Observed (1991-2020) | Projected (2100, RCP 8.5 Scenario)* | Key Implications | |
|---|---|---|---|
| Average Temperature | +0.6 °C per decade | +3.5 °C (avg); +6–7 °C (max daytime) | Extreme heat stress; higher energy demand and mortality risk |
| Heat Stress Index | Rising steadily | Increase by two categories in all regions; extreme in Arava and Dead Sea by 2050 | Occupational and public-health hazards |
| Rainfall Amount | 3–4% less (1988–2017 vs 1961–1990) | 20–25% less avg nationwide by 2100 | Water scarcity; drought; desertification risk |
| Rainy Days | 10–15% less (1991–2020) | 20–30% less by 2100 | Longer dry periods and flood peaks from short bursts |
| Intense Rain Events | 26–40% increase in 60-min precipitation intensity | Further intensification expected | Urban flooding and drainage system overload |
| Sea Level Rise | +13.8 cm in 29 years (+0.13 °C/yr water temp rise) | +106 cm by 2100 (temporary national scenario) | Coastal erosion, cliff collapse, saltwater intrusion |
Local preparedness and municipal capacity
The National Climate Vulnerability Mapping System (2024) provides Israel’s first national evidence database for heat and flood exposure, yet most municipalities lack the capacity to convert data into actionable plans and budgets. Philanthropy can strengthen local capabilities through training, mapping, and pilot projects – turning Israel into a “living lab” of climate resilience.
Case study: Aclima
Aclima is an NGO founded in 2024 and focused on building climate-resilient municipalities. Aclima supports data-driven local resilience, producing high-resolution maps of pollutants such as nitrogen oxides, particulate matter, methane, and CO₂. These tools help municipalities and health advocates identify exposure disparities and design targeted, equitable interventions. Aclima is spearheading climate-resilient rebuilding projects in the north of Israel.
The economic and moral case for building climate resilience
Unmitigated climate damage could cost 1.5–3% of GDP by 2050 (15–30 billion NIS annually), while early resilience investments yield four- to five-fold returns. Climate security is both a national necessity and a moral obligation.
Strengthening climate security is an act of faith in the future; to protect life and to improve the economic performance of the country.
Israeli climate tech: innovation, headwinds and opportunities
The argument for Israeli climate tech
Israel’s climate tech sector is rooted in necessity. Chronic water scarcity, energy insecurity, and limited natural resources fostered efficiency, and resilience. Solutions developed for domestic needs have proven globally relevant. From the 1950s to the 1970s, Golda Meir championed sharing Israeli expertise in agriculture and water management with developing countries, weaving innovation into international partnerships.
Today, Israel is home to nearly 1,000 climate tech startups and growth-stage companies. Long before “climate tech” became a thing, Israeli firms were building climate solutions: Luz pioneered large-scale solar thermal power. Ormat became a global leader in geothermal energy, operating power plants on five continents. Netafim revolutionized agriculture through drip irrigation, now used in over 100 countries.
A new generation builds on this foundation. Companies such as CropX (precision agriculture), UBQ Materials (waste-to-materials), H2Pro (green hydrogen), Helios (low-carbon steel), Aqua Security (water infrastructure cybersecurity), and ZutaCore (waterless cooling for data centers and industry) operate across food systems, materials, energy, and infrastructure.
Israeli strengths in four domains
Water systems & resilience
Desalination, reuse, and digital water management.
Agri-food & land use
Precision agriculture, methane reduction, alternative proteins.
Industrial decarbonization
Tech for cement, steel cooling and advance materials.
Energy & infrastructure efficiency
Storage, green, hydrogen, and data-center cooling.
“Climate and clean technologies are no longer side bets. They’re becoming central to how the global economy will function over the coming decades.”
scaling up remains a challenge
Despite strong innovation and proof-of-concept success, relatively few recent Israeli climate tech startups have scaled into global market leaders.
Climate innovation is different from software. Many climate sub-sectors are capital-intensive, hardware-driven, and/or dependent on regulation. Development timelines are long, and commercialization often requires large-scale partnerships. It’s not clear that Israeli companies are capable of having durable competitive advantage.
In addition there is the “valley of death,” particularly at the First-of-a-Kind (FOAK) stage. Demonstrating a technology at commercial scale can require $20-50 million before revenues are proven; too large and risky for early-stage venture capital and too early for infrastructure investors. Traditional VC models, built around rapid scaling and 3-7 year exits, don’t match the 10-15 year horizons needed for many climate technology companies.
The role of the Israel Innovation Authority
The Israel Innovation Authority (IIA) plays a critical catalytic role by de-risking early-stage R&D that private capital avoids. IIA grants typically cover 20–50% of R&D costs, helping startups to reach technical milestones and to attract follow-on funding, and the IIA maintains a comprehensive database on the climate tech ecosystem.
However, the IIA cannot fund scale-up or FOAK deployment, leaving a structural gap between public R&D support and commercial finance – precisely where strategic philanthropy could have outsized impact.
The result is a scaling bottleneck: impressive technological ingenuity, but narrow pathways from prototype to global leadership.
global climate tech headwinds also affect israel
Israel’s challenges are compounded by global headwinds. Climate tech’s share of total Israeli tech investment fell to 6.4% in 2024, down from 14.5% in 2023. This reflects global market conditions more than a lack of innovation, but it underscores the ecosystem’s vulnerability.
Globally, investment has often favored fast-scaling software solutions. Harder-to-abate sectors – industry, water, agriculture, heavy materials, and the built environment – remain underfunded despite their importance to decarbonization. Israel’s strengths lie precisely in foundational technologies that are essential for climate impact but harder to finance.
Israeli climate tech therefore sits at a turning point: widely respected for technological and entrepreneurial excellence, but facing financing challenges that limit its scale and impact.
Growth Map of climate tech domains
opportunities for investors, philanthropists and impact capital
These constraints create opportunities.
For investors, Israeli climate tech offers exposure to enabling technologies in sectors likely to define the next phase of global economic development: industrial decarbonization, water resilience, food systems, storage and hydrogen. Companies that survive today’s funding gap will be well positioned as markets mature. There is money to be made in this space.
For philanthropists and impact investors, there are a growing number of opportunities. Philanthropic capital cannot replace markets or government, but it can enable them. Targeted, catalytic interventions can help bridge structural gaps that private capital avoids:
- Non-dilutive R&D matching alongside IIA grants to accelerate technical milestones.
- Concessional loans, guarantees, or catalytic first-loss capital to de-risk FOAK projects and incentivize private investors.
- Pilot and demonstration funding to validate technologies in real-world settings.
- Technical assistance and ecosystem support, including regulatory navigation, international partnerships, and commercialization strategy.
- Mission-aligned venture philanthropy or blended finance vehicles that balance financial discipline with positive impact.
Jewish climate philanthropy is well-positioned to align communal commitment with long-term global impact, helping Israel move from “Innovation Nation” to “Climate Impact Nation.”
The question is not whether Israel can innovate. It is whether investors, policymakers, and philanthropists can help climate tech sub-sectors to reach critical mass as an eco-system.
Resources to learn more about
Venture capital funds with strong climate tech focus include:
The funds and companies mentioned here are indicative examples, and not to be taken as advocating for or recommending a particular firm, fund or product. JCT does not have any financial interest in any of the funds listed above. Always do your own due diligence and research.