Bank of Israel - Press Releases - Joint press release: Toward a Carbon Pricing Strategy for Israel
Central bank: boi | Type: statement | Date: 2020-06-10

Minister of Environmental
Protection Gila Gamliel: “We are stepping up the struggle against the
global climate crisis, and carbon pricing is the most efficient economic tool
for reducing greenhouse gas emissions. 
In this process, we will join the vast majority of OECD countries that are
pricing carbon while also setting out mechanisms that empower the environment
and increased energy efficiency.”
Bank of Israel Governor Prof.
Amir Yaron: “Discussing global warming and its implications for economic
activity is becoming increasingly important in the economic discourse and decision-making
processes around the world.  Studying the
issue and developing ways of assessing its impacts are part of the Bank of
Israel’s research work, and raising awareness of this issue is important in my
view.  I welcome the fruitful collaboration
between the Bank of Israel and the Ministry of Environmental Protection on this
issue, and in hosting the joint workshop.”
Many countries, and the main
international organizations, are paying increasing attention to climate change
and its potential impact on the global economy. 
We are increasing our knowledge regarding the risks—to society, the
economy, and the environment—that accompany climate change, and the activity aimed
at preventing the realization of those risks is growing.
The Ministry of Environmental
Protection and the Bank of Israel, together with other partners in the
government, will study these and other issues in depth and consult with
interested parties in environmental organizations and industry, and at the end
of this process, we will be able to make recommendations to the government of
Israel regarding the optimal carbon pricing policy.
In this context, one can learn
from international experience regarding the implementation of carbon pricing
mechanisms while directing some of the proceeds from the mechanism to reducing
its economic impact through refund mechanisms to the lower income deciles and
fiscal breaks to sectors that have suffered a negative impact. It is also customary
to divert some of the proceeds to investments in projects for the transition to
a low-carbon and low-emission economy, such as low-polluting public transportation
and energy-calibrated buildings.
​Various analyses and studies
presented at the joint expert workshop will be published separately.​