Israel has few raw natural resources, and its industry sector focuses on manufacturing products with a high added value. Important industries to the Israeli economy include pharmaceuticals, agrotechnology, telecommunications, fine chemicals and computers.
CO₂ emissions from energy use in the industry sector rose by 18% between 1990 and 2019, from 5.5 to 6.5 MtCO₂e. These emissions would need to drop to between 2 and 3 MtCO₂e by 2030 and reach zero between 2045 and 2047 to be in line with 1.5°C compatible pathways. The sector can be decarbonised by increasing the share of electricity primarily in its energy mix to 47–49% by 2030 (up from 37% in 2019) and continuing to increase it so that the share of electricity reaches 71–86% by 2050.
Process related emissions rose by 176% between 1990 and 2019, from 3.5 MtCO₂e in 1990 to 9.5 MtCO₂e in 2019. Israel’s National Action Plan on Climate Change (2022-2026) sets a 30% emissions reduction target for the industry sector compared to 2015 levels. While the target is a step in the right direction, a 1.5°C compatible pathway would require direct CO₂ emissions to reduce by 58–60% by 2030 compared to 2015 levels.
The plan also includes a target to increase energy efficiency by 5% in 2030 and by 16% in 2050 relative to 2020. Measures to achieve the target include standards allowing the use of recycled raw materials in products and funding to support industries in the use of more efficient materials.