EU Sustainability Rules Shift, Elevating Israel's Energy Profile

In early 2022, the European Union redefined natural gas and nuclear energy as "sustainable investments" within its "Green Taxonomy" framework. This move aims to facilitate private investment in sustainability projects, viewing these energy sources as a necessary "bridge" to achieving net-zero carbon emissions by 2050. The reclassification has significantly benefited countries like France, a major nuclear power producer, and nations heavily reliant on natural gas, such as Germany and Italy. Germany, in particular, is now reconsidering its decision to phase out nuclear power and invest heavily in solar energy despite limited sunshine, a move that has led to energy supply concerns and industrial closures due to rising costs. The war in Ukraine and subsequent EU sanctions on Russian gas further exacerbated Europe's energy challenges.

As a result of these updated criteria, natural gas and nuclear energy have joined solar, hydro, and wind power as recognized green energy sources. This change has unexpectedly positioned Israel as a leader in energy sustainability. Israel ranks third globally in electricity production from natural gas, accounting for 47% of its energy mix, and fifth in solar energy production, contributing another 5%. Overall, Israel utilizes sustainable energy sources for 52% of its total energy consumption.

France leads with 65% sustainable energy (47% nuclear, 12% natural gas), followed by Canada with 60% (40% natural gas, 10% hydro, 8% nuclear). The United States is fourth with 49%, and the OECD average is 45%. Beyond energy, Israel is also a world leader in other sustainability areas. It excels in wastewater treatment, purifying 90% of its wastewater for agricultural use, far surpassing Spain and Australia's approximately 25%. Israel is also a top global performer in seawater desalination, with some of the world's largest facilities, though Gulf states and Saudi Arabia lead in this sector. Furthermore, Israel has a remarkable afforestation record, planting around 250 million trees and being one of the few countries where the tree count in the early 21st century exceeds that of the early 20th century.