Israel Failing to Adopt Electric Cars, Energy Ministry Warns

A new strategic assessment by Israel's Ministry of Energy warns that the country is failing to meet its goals for electric vehicle adoption, a situation described as "stagnation." The ministry projects that under current policies, only 40% of new car sales will be electric by 2030, significantly missing the government's target of 90%. This shortfall is expected to halve the economic benefits of the transition, reducing them from an estimated NIS 20 billion to under NIS 10 billion by 2030.

The ministry attributes much of the failure to the Ministry of Finance, citing uncertainty created by last-minute decisions on vehicle purchase taxes and potential road usage fees. This uncertainty deters consumers from buying electric cars. The article notes that tax benefits for electric vehicles have been drastically cut since the start of the war.

However, the Ministry of Energy is not absolved of responsibility. A major bureaucratic hurdle identified is the difficulty in installing charging stations in shared residential buildings, a problem the ministry has failed to resolve despite efforts with the Ministry of Justice. Furthermore, a NIS 100 million budget for charging infrastructure deployment has not been realized because a related road usage tax, intended to fund it, was not legislated. Ironically, the Ministry of Energy itself had expressed reservations about this tax, fearing it would hinder electric vehicle adoption.

The report highlights that the current trajectory means Israelis will face higher costs for purchasing electric vehicles and will continue to be exposed to greater air pollution from internal combustion engines. The Ministry of Energy hopes its new demand model and warning will prompt a course correction, though it acknowledges the need for more internal self-criticism.