Update of Israel's Nationally Determined Contribution under the Paris Agreement

1. Quantifiable information on the reference point (including, as appropriate, a base year): (a) Reference year(s), base year(s), The reference year for all GHG emissions is 2015. reference period(s) or other starting point(s); (b) Quantifiable information on the Reference indicator: Net greenhouse gas (GHG) emissions in MtCO2e. reference indicators, their values in In 2015, Israel’s net GHG emissions were 79 MtCO2e. Achieving the targets will reduce emissions to the reference year(s), base year(s), approximately 58 MtCO2e by 2030 and approximately 12 MtCO2e by 2050. reference period(s) or other starting Values in the reference year for the sectorial emission reduction targets are as follows: point(s), and, as applicable, in the target year; Sector GHG emissions (MtCO2e) GHG emissions (MtCO2e) GHG emissions (MtCO2e) in 2015 in 2030 in 2050 Electricity 37.6 26.3 5.6 generation Transport 17.6 17 0.7 Industry 12 8.4 5.3 Waste 5.5 2.9 0.4 Other 6.3 N\A N\A (c) For strategies, plans and actions referred Not applicable. to in Article 4, paragraph 6, of the Paris Agreement, or polices and measures as components of nationally determined contributions where paragraph 1(b) above is not applicable, Parties to provide other relevant information; (d) Target relative to the reference indicator, Israel will achieve an economy-wide net reduction in GHG emissions of 27% by 2030 relative to 2015 expressed numerically, for example in emission levels. percentage or amount of reduction; Israel will achieve an economy-wide net reduction in GHG emissions of 85% by 2050 relative to 2015 emission levels. In addition, sectorial emissions reduction targets – relative to the annual amount measured in 2015 in each corresponding sector – have been approved: Sector 2030 2050 Electricity generation 30% 85% Transport 3.3% increase 96% Industry 30% 56% Waste 47% 92% Israel has further committed to a complete phase out of coal-fired power generation by 2026, and to increase the share of renewable power generation to 20% in 2025 and 30% in 2030. (e) Information on sources of data used in Data used in quantifying the reference points will be based on the 2008-2030 Israeli GHG Inventory quantifying the reference point(s); submitted to the UNFCCC in 2032. (f) Information on the circumstances under Where necessary, the Israeli GHG inventory may be revised to incorporate methodological which the Party may update the values of improvements, changes to international reporting guidelines and new data. the reference indicators.

2. Time frames and/or periods for implementation: (a) Time frame and/or period for NDC time frame: January 2021 - 31 December 2030 implementation, including start and end Long-term low-emission development strategy timeframe: January 2021 – 31 December 2050 date, consistent with any further relevant decision adopted by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA); (b) Whether it is a single-year or multi-year Single-year target in 2030 and in 2050. target, as applicable.

3. Scope and coverage: (a) General description of the target; Israel's target is economy-wide to achieve a 27% reduction in net GHG emissions by 2030 relative to 2015, to a level of no more than 58 MtCO2e. In addition, Israel aims to achieve an 85% reduction in net GHG emissions by 2050, relative to 2015, to a level of no more than 12 MtCO2e. In order to achieve its economy-wide target, Israel has also approved sectorial targets for 2030 and 2050 (see above clause 1.d) (b) Sectors, gases, categories and pools Sectors covered: covered by the nationally determined contribution, including, as applicable,  Energy (Fuel combustion) in: energy industries (electricity generation), manufacturing consistent with Intergovernmental Panel on industries, construction, transport, other sectors (residential, commercial, institutional, Climate Change (IPCC) guidelines; agriculture)  Industrial Processes  Agriculture  Waste and Wastewater  Land-use Change and Forestry Greenhouse gases covered: Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulphur Hexafluoride (SF6). Categories covered: Category 1.B. “Fugitive emissions from fuels” is currently not covered by Israel’s NDC. However, this category is to be included in Israel’s National GHG Inventory in the future (see below, section 3(c). Initial estimates are that fugitive emissions constitute between 0.1% to 0.8% of Israel’s total GHG emissions . LULUCF pools are negligible in Israel. The sectors, gases, categories and pools covered by Israel's NDC are based on the revised 1996 Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories, the 2006 IPCC Guidelines for National GHG Inventories and the Global Warming Potential (GWP) values from the IPCC Second Assessment Report (1995). (c) How the Party has taken into consideration Category 1.B. “Fugitive emissions from fuels” have not been included in past Israel’s Inventories but paragraph 31(c) and (d) of decision will be included in future inventories, starting with the report for the 2020 inventory year. Previous 1/CP.21; figures will be revised to include this category as well. Otherwise, all relevant categories of anthropogenic emissions or removals are included and will continue to be included. (d) Mitigation co-benefits resulting from Not applicable. Parties’ adaptation actions and/or economic diversification plans, including description of specific projects, measures and initiatives of Parties’ adaptation actions and/or economic diversification plans

4. Planning process (a) Information on the planning processes that NDC update and Long-Term Low-Emission Development Strategy the Party undertook to prepare its In early 2019, in cooperation with the Israel Democracy Institute and the OECD, the Israeli government nationally determined contribution and, if available, on the Party’s implementation initiated a broad and collaborative multi-sector process for formulating Israel’s Long-Term Low-GHG plans, including, as appropriate: Emission Development Strategy to transition to a prosperous and low-carbon economy by 2050. Five sectoral working groups (power generation, transport, industry, waste, and cities and buildings) were established, as well as a macroeconomic team and a social impacts team, consisting of a broad range of relevant stakeholders. i. Domestic institutional arrangements, A public consultation process was launched once the sectorial teams were established in the beginning public participation and engagement with of 2019. This consultation process enabled a wide participation of the public in the on-going work of local communities and indigenous peoples, the sectorial teams. It resulted in the integration of insights and comments by the public within the in a gender-responsive manner; work of the sectorial teams, and ultimately it facilitated a more holistic and inclusive strategy for a low- carbon transition. Inter-ministerial Steering Committee for GHG Emissions Reductions The decision-making process going forward is supported by an Inter-ministerial Steering Committee for GHG Emissions Reductions, which consists of representatives from all relevant government ministries and other relevant stakeholders. The Steering Committee submits an annual report to the government evaluating the effectiveness of government measures to reduce emissions, the progress towards meeting national GHG emission reduction targets and supporting targets and recommends additional measures as needed. Monitoring, Reporting and Verification of GHG emission reductions In April 2016, the Israeli government set out in its National Greenhouse Gas Emissions Reduction Plan (Resolution 1403) the establishment of a national system for monitoring, reporting and verification, relating to the implementation of the program and national targets for reducing greenhouse gas emissions. To date, Israel monitors emission reduction on both a national and a policy level in accordance with the national Monitoring, Reporting and Verification (MRV) system. The MRV system was implemented in 2016 by the Ministry of Environmental Protection in cooperation with other government ministries and relevant statutory bodies. It operates on the basis of guiding principles of the UN Climate Convention and on the basis of methodologies developed in accordance with the characteristics of the Israeli economy. It is managed by the Ministry of Environmental Protection, on behalf of the Steering Committee. ii. Contextual matters, including, inter alia, as appropriate: a. National circumstances, such as National circumstances are described in detail in Israel's National Communication submitted in 2018 and geography, climate, economy, sustainable additional information is detailed in the Biennial Update Report that will be submitted shortly. development and poverty eradication; Sustainable development and poverty eradication: Israel is committed to the implementation of Agenda 2030 and the Sustainable Development Goals as detailed in its Voluntary National Review submitted to the UN in July 2019. b. Best practices and experience related to the The establishment of sectorial working groups consisting of representatives of relevant ministries, local preparation of the nationally determined authorities, public representatives, NGOs, academia and others as described in section 4(a) above contribution; ensured broad public involvement and commitment, while the involvement of public policy think tanks and the OECD further contributed to the acceptability of the results. Within this context, establishing Israel’s Long-Term Low-Emission Development Strategy further informed the process to revise Israel’s 2030 NDC targets. (See above clause 4.a.) c. Other contextual aspirations and priorities Not applicable acknowledged when joining the Paris Agreement; (b) Specific information applicable to Parties, Not applicable including regional economic integration organizations and their member States, that have reached an agreement to act jointly under Article 4, paragraph 2, of the Paris Agreement, including the Parties that agreed to act jointly and the terms of the agreement, in accordance with Article 4, paragraphs 16–18, of the Paris Agreement; (c) How the Party’s preparation of its Israel participated actively in the Talanoa Dialogues and looks forward to participating in the Global nationally determined contribution has Stocktake in 2023. been informed by the outcomes of the global stocktake, in accordance with Article 4, paragraph 9, of the Paris Agreement; (d) Each Party with a nationally determined contribution under Article 4 of the Paris Agreement that consists of adaptation action and/or economic diversification plans resulting in mitigation co-benefits consistent with Article 4, paragraph 7, of the Paris Agreement to submit information on: i. How the economic and social Not applicable consequences of response measures have been considered in developing the nationally determined contribution; ii. Specific projects, measures and activities Not applicable to be implemented to contribute to mitigation co-benefits, including information on adaptation plans that also yield mitigation co-benefits, which may cover, but are not limited to, key sectors, such as energy, resources, water resources, coastal resources, human settlements and urban planning, agriculture and forestry; and economic diversification actions, which may cover, but are not limited to, sectors such as manufacturing and industry, energy and mining, transport and communication, construction, tourism, real estate, agriculture and fisheries 5 Assumptions and methodological approaches, including those for estimating and accounting for anthropogenic greenhouse gas emissions and, as appropriate, removals: (a) Assumptions and methodological In accordance with the modalities, procedures and guidelines outlined in Decisions 4/CMA.1 and approaches used for accounting for 18/CMA.1 of the Paris Rulebook, Israel will publish and submit to the UNFCCC, an annual National anthropogenic greenhouse gas emissions Inventory Report and Biennial Transparency Report by 31 December 2024 at the latest, and biennially and removals corresponding to the Party’s nationally determined contribution, thereafter. consistent with decision 1/CP.21, paragraph 31, and accounting guidance The National Inventory Report will account for Israel anthropogenic GHG emissions and removals and adopted by the CMA; the Biennial Transparency Report will report on progress towards the Israel’s NDC. Israel will compare achieved net GHG emission reductions with its NDC target for 2030. Israel will comply with future UNFCCC reporting guidelines on tracking, and reporting on progress. For current IPCC methodologies and metrics used, see section 5(d). Final accounting towards the target will take place in 2032. It will be based on the 2008-2030 Israel GHG Inventory, by comparing 2030 net GHG emissions to the 2015 reference year. (b) Assumptions and methodological For domestic MRV and UNFCCC reporting see section 4(a)(i) above. approaches used for accounting for the Israel has established a market-wide and sector specific GHG emissions modelling framework which implementation of policies and measures or strategies in the nationally determined enables to forecast emissions throughout to 2050 given different scenarios, abatement measures and contribution; assumptions. In addition, Israel has an MRV system which produces the following annual information and results: → Policy Measure Impacts: Within the MRV system framework, both achieved (ex-post) and expected (ex-ante) emission reductions are monitored for key policy measures. The expected reductions are calculated for each of the target years (2020, 2025 and 2030), for two levels of implementation:  Implementation of the policy measure to the extent that it has already approved (but not necessarily fully implemented)  Implementation in accordance with approved sectorial targets. → Abatement Scenario Emissions: Abatement scenario emissions are forecasted for each of the target years and each of the abovementioned three levels of implementation. The MRV system facilitates the following:  Measurement of national progress towards achieving mitigation goals.  Measurement of the effectiveness of specific government GHG reduction policies and actions.  Revision and expansion of the policy actions to maximize the achieved economic and environmental benefits.  Fulfillment of reporting obligations to the UN on mitigation actions by Israel and their effects.  Transparency of information on Israel’s progress towards its reduction goals The monitoring is conducted on the basis of approved government methodologies, which define the calculation methodology, the parameters to be monitored, and the requisite QA/ QC procedures. The methodologies also define the manner in which overlapping effects between different government measures are accounted for in order to avoid double counting. The current methodologies under approval within the MRV system framework are: o Monitoring fuel consumption and emission reductions in power generation o Monitoring energy efficiency and electricity consumption o Monitoring energy efficiency in buildings o Monitoring grant programs and support for energy efficiency and reduction of greenhouse gas emissions projects o Monitoring fuel consumption and emission reductions in the transport sector o Monitoring fuel consumption and emission reductions in industry and buildings sectors o Monitoring emissions reduction from the prevention of solid waste landfilling and emissions from the waste sector o Monitoring national targets for reduction of GHG emissions from fluorinated gases o Updating emission forecasts from agriculture, land use, wastewater and industrial process emissions (c) If applicable, information on how the Party See section 5(d) below will take into account existing methods and guidance under the Convention to account for anthropogenic emissions and removals, in accordance with Article 4, paragraph 14, of the Paris Agreement, as appropriate; (d) IPCC methodologies and metrics used for IPCC methodologies: estimating anthropogenic greenhouse gas The revised 1996 IPCC Guidelines for National GHG Inventories were applied for the calculation of emissions and removals; GHGs in all sectors, except agriculture and waste. Agriculture (category 4) is calculated according to the 2006 IPCC Guidelines for National GHG Inventories as of the 2011 Inventory year. Waste (category 6) was recalculated in 2012, for all inventory years according to the 2006 IPCC Guidelines. Additional Guidance: In addition to the IPCC Guidelines for National GHG Inventories, the ‘Good Practice Guidance and Uncertainty Management in National GHG Inventories’ guidelines were used for preparation of the inventories. Tier Levels : The tier level applied in the national GHG inventory varies from sector to sector due to the varying availability of data and information: • Module 1-Energy: In principle, Tier 1 was applied, with notable exceptions being the application of Tier 2 using information that is unique to Israel such as calorific values of primary energy sources (coal, natural gas, shale oil). Tier 3 was applied for emissions of SOx, NOx, and CO from vehicles, as well as emissions of SOx and NOx from electricity generation. • Module 2-Industrial Processes: In principle, Tier 1 was applied. For some sources emission factors specific to Israeli industry were used and therefore Tier 3 was applied. Regarding emissions of fluorinated gases, a methodology was adapted specifically to Israel and therefore Tier 3 was applied. • Module 3-Solvent and Other Product Use: There is no calculation of emissions from sources as such and therefore no tier level was applied yet. • Module 4- Agriculture: In principle, Tier 1 was applied, taking into account the specific processes in Israel’s agriculture sector and appropriate emission factors.For some sub sectors Tier 2 was applied. • Module 5- Land Use Change and Forestry: Israel uses the Tier 1 approach for estimating removals in forest land areas. There is no forest inventory in place as the forest land in Israel is negligible. However, data on forest land and on the mass of trees harvested do exist and are periodically updated. • Module 6- Waste: Tier 2 is applied to waste and Tier 1 to wastewater. Metrics: Global Warming Potential (GWP) values for a 100-year time horizon from the IPCC Second Assessment Report (1995). (e) Sector-, category- or activity-specific assumptions, methodologies and approaches consistent with IPCC guidance, as appropriate, including, as applicable: i. Approach to addressing emissions and Not applicable subsequent removals from natural disturbances on managed lands; ii. Approach used to account for emissions Not applicable and removals from harvested wood products; iii. Approach used to address the effects of The effects of age-class structure are not currently taken into account in Israel's GHG Inventory. age-class structure in forests; (f) Other assumptions and methodological approaches used for understanding the nationally determined contribution and, if applicable, estimating corresponding emissions and removals, including: i. How the reference indicators, baseline(s) Final reference year and target year emissions will be based on the 2015-2030 GHG Inventory to be and/or reference level(s), including, where submitted to the UNFCCC in 2032 for the 2030 target year. Emissions estimates in Israel's GHG Inventory applicable, sector-, category- or activity- are made using methodologies outlined in the 2006 IPCC Guidelines for National Greenhouse Gas specific reference levels, are constructed, including, for example, key parameters, Inventories and subsequent IPCC guidelines (see section 5(d)). The Inventory is revised annually and assumptions, definitions, methodologies, undergoes extensive review processes. data sources and models used ii. For Parties with nationally determined Not applicable contributions that contain non-greenhouse- gas components, information on assumptions and methodological approaches used in relation to those components, as applicable; iii. For climate forcers included in nationally Not applicable determined contributions not covered by IPCC guidelines, information on how the climate forcers are estimated; iv. Further technical information, as Not applicable necessary; (g) The intention to use voluntary cooperation Israel is planning to achieve its NDC mitigation objectives through domestic means but is following under Article 6 of the Paris Agreement, if Article 6 negotiations so that this option remains open should it be relevant in the future. applicable. 6 How the Party considers that its nationally determined contribution is fair and ambitious in the light of its national circumstances: (a) How the Party considers that its nationally Taking into consideration its national circumstances, Israel believes its target to be fair and ambitious determined contribution is fair and reflecting genuine efforts to move forward in a sustainable manner to facilitate the transition to a low- ambitious in the light of its national carbon and climate-resilient economy. circumstances; Israel is a small and densely populated country characterized by an expanding population and economic growth, facing land and water scarcity. Arid zones comprise over 45% of the area of the country while there is an exceptionally high degree of biological diversity that must be protected. Electricity generation has been largely based on domestic and imported fossil fuels as Israel has no access to a number of widely used low-carbon sources of energy such as nuclear, hydro-electric and geothermal power. The country is an energy island, without grid interconnectivity. There is limited surface area available for large-scale energy installations. The few available areas are subject to competing uses such as industrial development and housing, bio-diversity preservation, habitat conservation, agriculture and defense. Electricity generation from renewable energy (mostly solar PV) amounted to 6.1% of the total electricity generation in 2020. For many years, there has been significant use of solar heaters for water heating and greenhouse gas emissions associated with water heating are substantially lower than the global average. An additional factor limiting Israel's abatement potential is its small share of heavy industry sector with relatively low emissions reduction potential. Israel attains extremely high levels of water reuse (85%). However, to meet increasing water demand several desalination plants have been constructed. These installations are comparatively energy efficient and currently account for 5% of energy consumption. Water scarcity may necessitate the construction of additional plants in the future. (b) Fairness considerations, including See above, section 6(a) reflecting on equity; (c) How the Party has addressed Article 4, Israel’s first NDC formulated a per capita GHG emissions target that did not entail a reduction in absolute paragraph 3, of the Paris Agreement; emissions . Considering the previous target set in 2015 and revised population growth forecasts, the expected annual GHG emissions in 2030 would have been around more than 85 MtCO2e. The current target of 58 MtCO2e is significantly more ambitious. (d) How the Party has addressed Article 4, Israel's NDC is an economy-wide absolute emissions reduction target in compliance with Article 4.4 of paragraph 4, of the Paris Agreement; the Paris Agreement. Sectorial targets were defined as well in order to facilitate successful implementation of the economy-wide target. See above, section 1(d). (e) How the Party has addressed Article 4, Not applicable paragraph 6, of the Paris Agreement. 7 How the nationally determined contribution contributes towards achieving the objective of the Convention as set out in its Article 2: (a) How the nationally determined This NDC represents Israel's contribution to achieving the objective of Article 2 of the Convention and contribution contributes towards achieving reflects Israel's highest ambition at this time to stabilize GHG concentrations in the atmosphere at a level the objective of the Convention as set out that would prevent dangerous anthropogenic interference with the climate system. in its Article 2; (b) How the nationally determined Israel has outlined its specific circumstances (a growing population, limited land use area, and limitations contribution contributes towards Article 2, on the forms of suitable renewable energies, among others). Through its multisectoral consultation paragraph 1(a), and Article 4, paragraph 1, process, Israel has determined a mid-century long-term low carbon strategy which was formalized and of the Paris Agreement. approved by the government. Thus, Israel aims to support the collective effort to reach global peaking of GHG emissions as soon as possible (which is expected to occur in Israel by mid-decade), as set out in Article 4.1 of the Paris Agreement.