Regional Climate Collaboration

The Middle East & North Africa (MENA) region faces critical economic and social challenges which are exacerbated by the climate crisis, particularly due to its arid and semi-arid climate zones. With temperatures rising faster than the global average,¹ the region has seen intensified drought conditions, threatening already scarce water resources essential for agriculture and human consumption. Countries like Jordan are grappling with diminishing water supplies from rivers, further strained by upstream dam constructions and political conflicts. Additionally, coastal cities such as Alexandria and Tel Aviv are at risk from rising sea levels, which threaten infrastructure and displace communities. The Gulf States, among the hottest areas globally, are experiencing temperatures exceeding the global average, increasing health risks and straining energy demands for cooling. These patterns exacerbate socio-economic disparities and political tensions, particularly in economies reliant on oil revenues that are grappling with the transition to sustainable energy sources and economic diversification. While the climate crisis presents a multifaceted challenge, it also presents an opportunity to enhance regional MENA collaboration by developing and sharing innovative solutions. It is our deepest belief that no one country will solve all its neighbors’ problems. Yet by harnessing the different advantages and capabilities of each country, the region will achieve climate resilience.

Climate-tech innovations can significantly mitigate the climate crisis's risks in the Middle East. Regional players invested $5 billion USD² in climate technologies globally in 2023, seeking advanced solutions in renewable energy, water conservation, and sustainable agriculture. With over 900 startups addressing various environmental challenges, Israel's climate-tech ecosystem is rapidly expanding, supported by the country’s culture of innovation. Total investments (mostly private) reaching beyond $8.5 billion USD³ between 2018 and 2023, reflect confidence in the sector's potential to drive meaningful change. This confidence is bolstered by government support, academic institutions, and a vibrant venture capital community. Nevertheless, as this report argues, regional integration is key to ensure sustainable economic growth for the sector.

The Regional Climate Collaboration project was launched in July 2023 as a joint collaboration between the Israel Democracy Institute (IDI), Startup Nation Central (SNC), and EcoPeace Middle East. The goal of the project is to identify opportunities for collaboration, based on climate innovation, between Israel and seven countries in the MENA region (namely, Bahrain, Egypt, Jordan, Morocco, the Palestinian Authority, Saudi Arabia, and the UAE). The project gathered a working group of over 100 representatives of the climate community from the Israeli private, public, and civil society sectors to share knowledge and learn from each other. Over 40 interviews were conducted to collect information and data, completed by extensive market research and resources from the three organizations leading the project.

The primary objectives of this project are:

1. Introduce stakeholders in the MENA region to Israel’s ecosystem of climate innovation, showcasing its solutions to climate challenges.

2. Familiarize Israeli stakeholders with opportunities, key institutions, and cultural considerations in MENA country's business environments.

3. Identify effective collaboration opportunities, including in areas like desalination, hydrogen, and agrivoltaics, as well as governmental and business mechanisms such as bilateral pilot agreements.

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The outbreak of war on October 7, 2023, led to a chill in diplomatic and business relations between Israel and countries in the MENA, shifting most activity to be ‘under the radar’. Despite the challenges in obtaining information from non-Israeli regional stakeholders, the Regional Climate Collaboration project continued, focusing primarily on learning from Israeli and international stakeholders who already had established deep relationships with their Arab and MENA counterparts. This report proceeds from the view that political disputes play a large role in chilling civilian relationships in the MENA, but that regional collaborations can arise whenever economically sound. Moreover, the situation has created a variety of new opportunities, such as the potential for rehabilitating and reconstructing the Gaza Strip in the post-war period using elements of climate innovation. This reconstruction effort could be supported by a regional coalition to finance these initiatives, showcasing the transformative power of climate-tech collaboration. In any case, it should be noted that Israeli-Palestinian relations remain the cornerstone for any large-scale effort to improve regional MENA collaboration.

Following the publication of this report and its recommendations, our findings will be presented to prominent stakeholders in Israel and the MENA region.

By engaging key decision-makers, industry leaders, and policy influencers, the project aims to advise on the implementation of its outlined recommendations.

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1 UNICEF. "Climate Change in MENA". UNICEF

2 "Middle East Climate Tech Report 2023". PwC

3 "Sustainability in the Middle East". USRFiles