Reducing the climate footprint of the transportation industry in Israel

Full research (Hebrew)

  • The transportation industry is the source of about one quarter of greenhouse gas emissions in Israel, and its share of total emissions is increasing as those from electricity generation are decreasing.
  • Emissions can be reduced by switching to emission-free vehicles, by switching from using private vehicles to public ones, or a combination of both—particularly by switching to electricity-powered buses. Thus, for example, a shift of 1 percent from traveling via private transport to public transport can reduce total emissions by 6.6 hundredths of a percent.
  • The share of emission-free vehicles worldwide in 2030 is expected to reach 7 percent and preparations should be made for a similar development in Israel—including expanding the charging options for the vehicles and setting different electricity rates over the course of the day. In addition, a legislative framework must be formulated promptly for recycling batteries of electric cars, and it must be decided if the recycling will be done in Israel.


An analysis carried out by Lior Gallo and Yossi Margoninsky of the Bank of Israel Research Department, to be published soon in “Selected Research and Policy Analysis Notes” examines the climate footprint (greenhouse gas emissions) of the transportation industry in Israel, presents options for how to deal with it, and points to conclusions regarding the Israeli economy.


The transportation industry is a major source of greenhouse gas emissions in Israel, second in volume only to electricity generation, and its share in total emissions is growing. Possible solutions for emissions deriving from the transportation industry are a switch to use of emission-free vehicles, or a shift to public transportation—the pollution from which, per passenger, is lower than that of private transportation.