Resolution 286 on pricing of greenhouse gas emissions

The government of Israel announced the plan to introduce a carbon tax at slowly increasing level from 2023 to 2028 through a statement approved by the Tax Authority and the Finance, Energy, Environmental Protection and Economy ministries. 

 

The nation’s first carbon tax will be applied to coal, liquified petroleum gas, fuel oil, petcoke and gas and is expected to cover about 80% of greenhouse gas emissions by 2028. However, the tax would not be introduced if the electricity price would rise by more than 5% through 2028. Additionally, diesel and gasoline will not be taxed any further as part of the scheme, due to existing levies. 

 

At a later stage, the tax will cover the emissions from other sources of global warming gases, such as garbage dumps, responsible for 8% of Israel’s GHG emissions, and cooling gases used in air conditioning systems, refrigerators, and refrigerated vehicles, which account for 7% of GHG emissions.

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