Israel’s Environmental Fund Faces 4 Billion Shekel Deficit After Years of Overspending

Israel’s Environmental Protection Ministry, led by Minister Idit Silman, is confronting a significant financial shortfall in the Cleanliness Fund, which finances waste management infrastructure. Over recent years, Silman’s ministry made promises amounting to billions of shekels from the fund, which was originally established to reduce landfill waste and support advanced waste treatment facilities. Despite collecting billions in landfill fees since 2007, about 80% of Israel’s waste is still buried in the ground.

By 2024, the fund held approximately 8 billion shekels, but much of this money was used by the Finance Ministry for loans, and the Environmental Ministry diverted up to 25% of the fund’s income to other purposes, including public relations and purchasing low-emission buses. Recently, the fund began allocating billions for future waste facility projects and government decisions, quickly depleting its reserves.

Budget department representative Ido Mor warned in 2025 discussions that the fund’s commitments exceed its available balance, with an uncovered deficit potentially reaching 4 billion shekels, equivalent to eight years of expected income. The ministry has not published required financial reports since June 2024, making the fund’s exact status unclear. The shortage is already affecting daily operations, with the Environmental Ministry asking the Education Ministry for 5 million shekels for joint projects, a request the latter struggles to fulfill.

The Environmental Ministry stated it rejects claims of budget overruns, asserting all allocations were approved in coordination with the Finance Ministry based on current financial data. It highlighted ongoing efforts to accelerate waste management infrastructure development, including Israel’s first waste-to-energy plant and expanded recycling initiatives. The ministry is negotiating with the Finance Ministry to secure long-term funding to continue these projects. The 2024 annual report was published, and the 2025 report is in final approval stages before submission to the Knesset’s Interior and Environmental Protection Committee.