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The car tax in Israel has been historically the highest compared to any other country in the world, except for Denmark. The vehicle purchase tax was adjusted in 2005, 2009 and 2013. The Israeli experience sets a precedent for a tax that takes all pollutants into account.
Israel’s growing population and rising incomes have seen consumption increase substantially, bringing with it considerable pressure on the environment. One of the main environmental pressures is from the ever-increasing transport activity, especially the use of private vehicles. Although travelling in a private vehicle brings benefits to the individual using it, this entails costs to society as a whole.
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Despite a relatively good performance on several points compared to other countries, there is still scope for improving the effectiveness of Israel’s taxation policy from an environmental perspective.
Business brief. Overcoming the challenges of an arid climate and scarce natural water reserves has always been a vital necessity for the growth of Israel’s population and economy since the founding of the state. This has led to continuous improvements in Israel’s water sector, through innovations in technologies, practices and long-term plans.
The Government of Israel and the OECD co-organised an international conference on "Joining Forces to Develop Smart, Cost-Effective Urban Water Utilities: Policy, Economics, Environment, Regulation and Technologies" on 23 October 2013, in Tel Aviv.
The OECD Council approved the Opinion of the Environment Policy Committee regarding the compliance by Israel with the OECD Decision C(2001)107/FINAL which establishes the OECD Control system for waste destined for recovery. Since 1992, transboundary movements of recyclable wastes between OECD countries are regulated by this Decision, established by OECD Council, and designed as an agreement under Article 11 of the Basel Convention.
Today, management of water resources is one of the major challenges confronting Israel. Accelerated population growth - along with economic growth - has placed additional pressure on Israel's limited water resources but the country is at the forefront of green innovations for water management.&l
This 2011 review of Israel's environmental conditions and policies evaluates progress in sustainable development, improving natural resource management, integrating environmental and economic policies, and strengthening international co-operation. This report is the first OECD review of Israel’s environmental policy performance.
In recent years Israel has strengthened its environmental policies and now should develop a green growth plan that combines environmental, economic and social policies.
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Now that Israel has entered the OECD, the government has made significant efforts to push environmental initiatives such as the promotion of eco-innovation. This report provides an overview of governmental efforts to stimulate eco-innovation in the business sector and households.