As we move forward, the Israeli climate tech ecosystem stands at a pivotal moment. Building on a foundation of resilience and innovation, the following years offer both challenges and opportunities for growth. The insights and trends outlined in this report reflect the evolving dynamics of the sector, driven by multistakeholder collaboration and technological advancements. Entrepreneurs, startups, investors, and corporates continue to lead innovation and deployment. At the same time, the government plays a crucial role not only as a regulator, but also as a financier and enabler. Public-private partnerships have been instrumental in overcoming barriers, streamlining regulations, and fostering the commercialization of groundbreaking solutions.
The climate tech ecosystem in Israel has not only emerged as a promising sector but has matured significantly, establishing itself as one of the pillars of innovation and resilience. This development marks a transition from early-stage emergence to a phase of sustained growth, requiring strategic support to navigate different challenges and scale effectively. With current geopolitical uncertainties and economic volatility, key actions are essential to maintain momentum.
Key areas where public and private sector actions can drive the greatest impact:
- Creating a stable investment environment: Providing a framework to reassure investors and entrepreneurs amid geopolitical and economic challenges.
- Scaling Infrastructure: Establishing infrastructure to support the development in emerging domains and deployment of climate tech solutions, pilots, test sites, labs, etc.
- Incentivizing Investment: Offering targeted incentives, such as grants, tax benefits to attract private capital into high-impact areas.
- Facilitating Knowledge Transfer: Encouraging collaboration between academia, startups, and corporations to bridge knowledge gaps and foster innovation.
Moreover, these developments of the sector open the door for more financial players such as private equity investors, family offices, and growth venture capital funds, both local and global. The Israeli climate tech ecosystem continues to evolve as a global hub for innovation, addressing critical climate challenges while driving economic growth. The Israel Innovation Authority and PLANETech have prioritized the development of this sector, recognizing its potential not only to bolster Israel’s economy but also to position the country as a leader in global climate solutions. This report highlights the key stakeholders contributing to this progress – entrepreneurs, startups, investors, and corporations in the private sector, alongside government stakeholders playing essential roles as financiers, regulators, and customers.
Israel has yet to fully realize its vast potential in climate innovation, commercialization, and scale-up. Achieving this will diversify the high-tech industry, reinforce Israel’s leadership in climate solutions, and contribute meaningfully to global climate action. Domestically, it will support national climate goals, enhance employment opportunities, and strengthen resilience across energy, water, and food security.
Key climate tech domains were identified, where targeted support can accelerate growth. These domains have been chosen based on Israel’s knowledge base, startup ecosystem, investment trends, and core strengths. They include:
- Energy, Mobility, and Carbon Removal – Advancements in energy storage, micro-grid solutions, and next-generation materials for clean energy applications.
- Soil & Ag-Foodtech – Innovations in agricultural robotics, climate-adaptive crops, regenerative agriculture, and alternative proteins.
- Manufacturing, Building, and Novel Materials – Sustainable materials, modular construction methods, and the development of smart, bio-integrated cities.
- Water, Waste, and Circularity – Clean water technologies, desert resilience technologies, and circular economy initiatives.
- Climate AI and Bio-Convergence – AI-driven extreme weather detection, bio-material innovations, and advancements in synthetic biology for sustainability.
The Israeli climate tech landscape is poised for further acceleration, driven by an active government role and a thriving private sector. New investments, talent influx, and the proliferation of venture builders, accelerators, and incubators continue to enhance the ecosystem. The growing academic focus on climate solutions, coupled with the increasing engagement of the broader high-tech industry, further reinforces the momentum.
The collaborative spirit between public and private stakeholders remains a defining strength, bolstered by a blend of grassroots innovation and strategic policymaking. Through ongoing efforts—ranging from climate tech competitions and hackathons to government-backed infrastructure projects—Israel’s climate tech ecosystem is set to expand its global impact, ensuring long-term sustainability and leadership in tackling the world’s most pressing environmental challenges.