Dear clients and friends,

We would like to inform you that in recent days, a Ministerial Climate Change Adaptation Plan (dated December 31, 2023) was published by the Ministry of Environmental Protection (hereinafter: the Ministerial Adaptation Plan, the Ministry), and  Report No. 2 on Adaptation to Sea Level Rise (hereinafter: the Report on Adaptation to Sea Level Rise)  was published by the National Climate Directorate (hereinafter: the Climate Directorate), that is responsible for preparing a plan for the implementation of the national strategy for addressing adaptation to climate change (hereinafter: adaptation), pursuant to Government Decision No. 4079 (hereinafter: the Government Decision).

1.Before addressing the above publications, we would like to note that, as is well known, in recent years we have been witnessing significant climatic impacts resulting from global warming, which according to scientific research are expected to intensify over the years and affect all aspects of life. This is true worldwide but especially in Israel, which is considered a significant climate hotspot. Examples of climatic trends include rising average temperatures, rising sea levels, changes in precipitation frequency, water scarcity, and more.

2. As part of the attempt to accelerate adaptation to these changes, research and policy documents, as well as new regulation, are being prepared in the field, both at the international and local levels (see, for example, in Israel, the proper banking procedure recently published by the Banking Supervisor (June 2023), which requires the Israeli banking system to integrate the issue of climate risks into its operations). Accordingly, climate change and accompanying regulation have a significant impact on different entities’ business activities and risk management and, in turn, on their ability to raise capital and on the terms of financing for their activities.

3. In general, adaptation plans are prepared to address the aforementioned impacts, and they include the identification of current and future scenarios for relevant climate change phenomena, the risk associated with them and how they will affect the examined entity: authorities, states, private and public companies, financial institutions, and so on. To identify the scenarios and the risk associated with them, the relevant entity is required familiarize itself with the regulations applicable to it, analyze the current climate scenarios relevant to the sector, the type of infrastructure involved and the geographic location of the sites where it operates and its value chain. Afterwards, the entity examines how these scenarios may affect its business activities and what risk management measures should be taken within a given time frame.

4. In line with this trend, and in light of the Government Decision which instructs all government ministries to prepare a ministerial adaptation plan by the end of 2023, the Ministerial Adaptation Plan was published in recent days:

• • The Ministerial Adaptation Plan is a five-year plan (for the years 2024-2028). Its purpose is to identify Ministry activities that will be affected by climate change, the impact on these activities, and to develop specific tasks and measures in each activity area, in order to reduce the expected risks and exposure.
  • The preparation process of the Ministerial Adaptation Plan includes: a. mapping and analyzing the impacts of climate change on the Ministry’s activities; b. developing 140 tasks applicable to all units of the Ministry; c. grouping all tasks into 15 measures, and d. identifying the 4 central measures to be prioritized for the implementation plan: planning how to prepare and operate facilities in routine and emergency situations, preserving ecological systems, protecting existing and planned infrastructure and buildings, and upgrading and maintaining wastewater treatment plants (a full list of measures can be found on page 5 of the document).
  • It is recommended to examine the impact of all 15 adaptation measures developed by the Ministry, considering the activities of the relevant entity. It should be noted that the tasks under each of the measures also include the publication of specific policy documents, as well as general and specific regulatory changes in relevant permits (for example, in plant-specific toxins permits).

5. In addition to the aforementioned, the Climate Directorate has published the Report on Adaptation to Sea Level Rise:

• • The issue of rising sea levels was identified as one of the four main trends that will affect Israel in the Climate Directorate’s Report No. 1 from April 2021.
  • The Report on Adaptation to Sea Level Rise discusses the determination of a temporary national scenario for the next two years, which will define the extent of sea level rise for which preparations should be made, as well as specific recommendations and timelines for the process of determining a permanent scenario in 2025. Determining the scenario will help create a basis for developing policies and taking adaptation measures.
  • This prominent issue of rising sea levels requires appropriate adaptation at a plant-specific level in various aspects, particularly for entities with maritime activities or entities that own or operate infrastructure at sea or on the coastline.

6. It should be noted that there is also great importance in familiarity with international regulations and international research and policy documents on adaptation, which are relevant to Israel and to Israeli entities with global activities. For example, in November 2023, the OECD’s Climate Action Monitor Report was published. This report analyzes and compares actions, needs, and projections for adaptation by OECD member countries and other countries. This report shows that Israel is exposed to a relatively high number of extremely hot days per year and is also exposed to drought, two scenarios for which it must prepare accordingly. In recent days, the Provisional State of the Global Climate 2023 Report was published by the World Meteorological Organization, which provides comparative information and insights on prominent climate trends, including the increasing frequency of extreme events, in a way that highlights the need for global action.

7. In addition, there are a number of sector-specific publications on adaptation (local or international), for example, the recently published study on the impact of heat stress on work accidents in the construction industry.

8. The reports and documents mentioned above, current and future regulations, and any public, relevant, based, and reliable information regarding the impacts of climate change, are a crucial element in adaptation plans prepared by entities in the business sector.

We are at your disposal for any questions or clarifications on the matter.

Hoping for calmer days,

The Environment and Climate Change Practice

The above is intended to present the main issues and does not constitute legal opinion or legal advice.