Like many countries in the Middle East and North Africa region, Israel faces a variety of water-related challenges including growing demand, urbanization, and climate change. Faced with these challenges, Israel made long-term investments in technology that have paid off in the form of a dynamic, export-oriented water sector. Growth has been rapid; the sector has seen an increase in exports of almost 200% in just three years. The Israeli government now sees water technology and related services as one of the most promising opportunities for export-oriented growth, underscoring how Israel has managed to turn water scarcity from a brake on development into an engine for it.
Israel’s water system is composed of multiple private and public organizations along a circular value chain that extends from natural water sources to water storage and collection to waste treatment to reuse. Using a systemic, value chain approach, largely organic, centralized system that mimics the natural water cycle, maximizing efficiency and rewarding performance. Multiple stakeholders in Israel are guided in their efforts by environmental need, government policy, as well as technological drivers which encourage cooperation and innovation.
The national government maintains public ownership of water resources, consolidates water authorities, builds national water infrastructure systems, commits public support for new water technologies and solution, including sea water and brackish water desalination, as well as transparent water measurement system, monitoring, security, and management systems. This public system translates the environmental and economic externalities into public unit costs and corresponding tariffs, and, at the same time, encourages constant innovations and improvements to improve services and lower water usage (and cost). In its strategies on pricing, Israel has successfully reduced water demand.
Reference: D Kaufmann, S. Zecher, J. Dodick and Y. Naftali., (2019): Circular Economy Business Model. “Israel Water System.” (2019)
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Trade Officer – Ministry of Economy and Industry, Israel
Consulate General of Israel in Mumbai
Tel: +91 22 61600521
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