Dear clients and friends,

Earlier this year, we issued a general client update regarding Israel’s adaptation to climate change, which focused on two documents published in December 2023 concerning Israel’s climate change preparedness: the Ministry of Environmental Protection’s Ministerial Climate Change Adaptation Plan and the National Climate Directorate’s Report No. 2 on Adaptation to Sea Level Rise.

Following up on the aforementioned updates, we would like to inform you of several recent publications by government ministries, and primarily that by the Ministry of Environmental Protection. These include the release of the first version of the National Climate Risk Map in January 2024, the Progress Report on the Preparation of Climate Change Adaptation Plans by the Israeli Government in July 2024, the First Phase of the National Adaptation Plan – the Mapping Phase, also released in July 2024, the Practical Guide for Working in Extreme Heat published by the Ministry of Labor in July 2024 and the Analysis of Climate Trends and Extreme Events in Israel over the 21st Century published by the Ministry of Transportation and the Meteorological Service in July 2024.

Before delving into these documents, we would like to emphasize that while there are currently no operational provisions in Israel that apply to companies which operate in the country, it is essential for businesses to begin preparing for long-term climate change adaptation. There are several reasons for this: firstly, relevant regulations and international standards related to adaptation are already impacting, or may soon impact, many companies, whether these regulations apply directly to their operations or indirectly through their business relationships (for example, through supplier and service provider questionnaires); secondly, we may encounter specific operational regulations in Israel in the future (for example, as additional conditions for business licenses); thirdly, financial institutions and funding entities both domestically and abroad are increasingly requesting information on how, and to what extent, companies are preparing for climate risks, including adaptation measures (partly due to regulations governing the financial sector); and fourthly, and most importantly, maintaining the continuity and stability of a company’s long-term business operation and its economic survival in the face of the climate crisis necessitates physical and financial preparation by the company, including in regard to its assets, facilities and supply chain.

It is important to note that the nature of each company’s adaptation will depend on its sector, type of activity, the geographic location of its operations (e.g., maritime activities or proximity to the sea), the jurisdiction of its operations (in the case of a company with global operations), and a host of other specific circumstances. Accordingly, a company’s adaptation to climate change should be based on local and international factual databases, including the documents published by the Ministry of Environmental Protection and other government ministries, which are specifically focused on Israel and provide insights into future regulatory directions. Therefore, we believe it is important to monitor these updates.

We discuss below the abovementioned recent publications on climate change adaptation in more detail.

1. Publication of the National Climate Risk Map:

• • On January 29, 2024, the Ministry of Environmental Protection released a first version of the National Climate Risk Map, developed under the leadership of an inter-ministerial steering committee. This interactive map is publicly accessible and provides a high-resolution visualization of current extreme climate events. The data layers displayed on the map reflect the threats identified as primary physical climate threats, including flood risks, extreme heat, and coastal storms.
  • The map aims to assist decision-makers in making informed decisions based on science and knowledge, as well as in setting priorities for planning and implementing climate change adaptation measures. The map is expected to be further developed and updated regularly. In the future, it is expected to also include mapping of future extreme climate events based on global climate scenarios and reflect additional physical climate threats, such as wildfires and sea level rise.

For the full publication on the Ministry of Environmental Protection website >> click here.

2. Publication of the Progress Report on the Preparation of Climate Change Adaptation Plans:

• • Following the publication of the Ministry of Environmental Protection’s Ministerial Climate Change Adaptation Plan in December 2023 (which was discussed in detail in the previous client update relating to adaptation), the Ministry of Environmental Protection released on July 15, 2024 the Progress Report on the Preparation of Climate Change Adaptation Plans by the Israeli Government. This report summarizes the main points of the adaptation plans of 12 government ministries and units, including the Ministry of Environmental Protection itself. Alongside the report, the full adaptation plans of 10 government ministries and units were published.

The publication of these ministerial adaptation plans highlights the importance of tailoring climate change adaptation to the specific characteristics of each sector, including the most relevant climate threats, their impact on the sector, and the available tools for addressing them. Notably, the following plans were published:

• • The Water Authority’s Adaptation Plan: This plan focuses on ensuring the long-term reliability of water supply. Among other things, it addresses the need to increase desalination capacity in Israel under various scenarios, considering the expected decline in natural water resources. The plan also addresses the possibility that climate change will affect seawater quality and jeopardize water supply reliability, including considering scenarios of partial or complete shutdown of desalination facilities in the country.
  • The Planning Administration’s Adaptation Plan: This plan places particular emphasis on reducing the risk posed by sea level rise to infrastructure, real estate, beaches, ecosystems and the public, as well as reducing the damage caused by floods and flash floods, which are partly caused by sea level rise. In addition, the plan sets goals for climate-resilient urban planning, promoting the preservation of urban natural areas and ecosystems.

For the full publication on the Ministry of Environmental Protection website >> click here.

3. Publication of the First Phase of the National Adaptation Plan – the Mapping Phase:

• • On July 1, 2024, the Ministry of Environmental Protection published the First Phase of the National Adaptation Plan (hereinafter: the National Adaptation Plan) – the Mapping Phase. The National Adaptation Plan is being developed pursuant to Government Decision No. 4079, which concerns Israel’s adaptation to climate change. The mapping phase of the National Adaptation Plan outlines 48 measures and approximately 200 tasks that roughly 30 government ministries and bodies are tasked with promoting and implementing in the coming years to improve Israel’s preparedness for the climate crisis. These measures and tasks span five sectors: security and emergency, economy, built areas and infrastructure, agriculture-nature-water, and welfare, alongside a series of cross-sectoral measures.
  • Among the measures detailed in the mapping phase of the National Adaptation Plan, there are several measures under the economy sector which may be relevant for industrial companies, startups, and financial institutions:
    • Providing information on climate change and adaptation measures to the business sector and employees: This measure involves collecting information on the adaptation of employees, public organizations and businesses to climate change. This measure has been identified as a prioritized measure for the purpose of a future implementation plan.
    • Adapting labor market regulation to climate conditions: This measure involves assessing the risks and potential impacts of climate change on various sectors and industries, mapping existing regulations and examining their suitability, and developing guidelines and recommendations on health, occupational safety, and emergency work.
    • Adapting tools for addressing market failures in the financial system (banks, insurance companies, and investment houses): This measure includes, among other things, internalizing investment and financing risks resulting from climate change, improving environmental financial regulation with an emphasis on alignment with EU regulations, developing an Israeli taxonomy, and providing tools and guidelines for financial institutions.
    • Supporting innovative climate technologies: Integrating startups in the adaptation field to promote breakthroughs in the field.
  • In the second phase of the National Adaptation Plan, a methodology will be developed to prioritize measures and tasks from the mapping phase based on a cost-benefit analysis. This analysis will determine an implementation plan that will prioritize the measures with the highest cost-benefit value.
  • The future Climate Law, which is currently in the legislative process, will provide a mandatory framework for the preparation of the National Adaptation Plan and the ministerial adaptation plans.

For the full publication on the Ministry of Environmental Protection website >> click here.

4. Publication of the Practical Guide for Working in Extreme Heat:

• • On July 10, 2024, a Practical Guide for Working in Extreme Heat was published by the safety and occupational health administration, that was intended to provide managers, holders of work safety authority positions and workers, with practical information regarding coping with extreme heat and the main risks it involves, including, among other things, significant health effects (such as dehydration, heat stroke and more), increased exposure of workers to volatile materials, difficulty in the use of personal protective equipment and decrease in worker productivity.
  • In this publication, the Ministry of Labor gathered additional information relevant to the effects of climate change on the well-being of workers and the methods of coping with them, including emphasis on preparation and routine activity in the winter to mitigate risks to installations in construction sites and other work places, the risks to workers from solar radiation and ways of curbing them, reference to research regarding the effect of climate risks on workers in the construction industry and a reference to a Telegram channel that sends alerts of extreme heat events in Israel.

For the full publication on the Ministry of Labor website >> click here.

5. Publication of the Analysis of Climatic Trends and Extreme Events in Israel throughout the 21st Century:

• • On July 15, 2024, the Analysis of Climatic Trends and Extreme Events in Israel throughout the 21st Century was published by the Ministry of Transportation and the Meteorological Service, which provides comprehensive analysis of climatic trends observed and forecasted in Israel until the end of the 21st century, while focusing on extreme climate events, including extreme temperatures, extreme heat and heavy rainfall at varying times.

For the full publication on the Meteorological Service website >> click here.

We are at your disposal for questions and clarifications on the subject.

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

Hoping for calm days,

The Environment and Climate Change Practice