Israel Rolls Out Second-Year Carbon Reduction Grants for Industry
Israel's government announces NIS 300 million in grants for industry's second year of carbon reduction, encouraging efficiency and emissions cuts.
Jerusalem, 26 April, 2026 (TPS-IL) — The Israeli government has launched a second-year program to promote energy efficiency in industry as part of preparations for the carbon tax framework. The NIS 300 million ($100 million) initiative, spread over three years, supports projects that reduce fuel and electricity consumption and cut greenhouse gas emissions. The program includes expanded eligible sectors, new requirements for low-global-warming refrigerants, and incentives for fuel-to-electricity or hydrogen conversion.
Grants cover 25%–50% of costs, up to NIS 3.5 million ($1.17 million) per project. Applications are open until May 25, 2026. Officials said the plan aims to boost competitiveness while accelerating the transition to a low-carbon industrial economy.
The program is a joint initiative of the ministries of Finance, Economy and Industry, Energy and Infrastructure, and Environmental Protection.