Regional Climate Collaboration

Background: The Climate Crisis in the MENA Region

The Middle East and North Africa (MENA) region faces a unique set of challenges in the wake of the climate crisis. Exacerbated by its arid and semi-arid climate zones, rising temperatures across the region have intensified droughts, threatening already scarce water resources critical for agriculture and human consumption. Jordan, Iraq, and other countries have experienced dwindling water supplies from rivers, further strained by upstream dam constructions and regional conflicts. Sea level rise poses a threat to coastal cities like Alexandria and Tel Aviv, endangering infrastructure and displacing communities. The Gulf States, already among the hottest places on Earth, are experiencing increasingly high temperatures that exceed the global average, amplifying heat-related health risks and challenging energy demands for cooling. Moreover, the MENA is susceptible to extreme weather events such as intense heat waves and sporadic flash floods, which disrupt fragile ecosystems and agricultural productivity. According to the International Monetary Fund (IMF), in the Middle East, “temperatures have risen twice as fast as the global average, and rainfall has become scarcer and less predictable.”[1]

These weather patterns not only impact local livelihoods but also intensify socioeconomic disparities and political tensions. Countries heavily reliant on oil exports face a dual crisis as they grapple with the transition to sustainable energy sources. Mitigating the environmental impact of fossil fuel extraction is necessary and difficult, while energy transition and economic diversification entail significant socioeconomic changes, especially when oil is the country’s largest industry. The climate crisis thus presents a multifaceted challenge for MENA countries, necessitating innovative solutions to ensure sustainable development in the face of escalating climate risks.

This urgent need for innovation makes the climate crisis an opportunity to enhance regional collaboration throughout the MENA, utilizing the unique advantages and capabilities of each country and creating mutual climate resilience.

The Potential of Climate-Tech Solutions

Climate technologies have the potential to significantly mitigate the risks of the climate crisis in the MENA.[2] By leveraging advanced solutions in renewable energy, water conservation, and sustainable agriculture, climate-tech can address pressing environmental challenges. Regional players invested $5 billion[3] in climate technologies globally in 2023 and $3.6 billion in 2024.[4] All amounts are in US dollars (USD) unless otherwise noted.

For example, solar and wind energy technologies can reduce the MENA’s reliance on fossil fuels, cutting greenhouse gas emissions and fostering energy security. Innovations in water technology, including desalination and wastewater recycling, are crucial for addressing water scarcity and ensuring a reliable supply of clean water given dwindling natural reserves. Sustainable agricultural practices, supported by climate-tech innovations like precision farming and drought-resistant crops, can enhance food security and resilience against extreme weather events. By integrating these technologies, MENA countries can mitigate the impacts of climate change and build a more sustainable and resilient future.

Each country in the region possesses distinct competitive advantages in addressing climate change. Critical issues such as food, energy, and water security transcend political differences and may encourage nations to recognize one another as complementary partners in meeting these pressing needs.

Israel’s climate-tech ecosystem is a dynamic and rapidly growing sector, with over 900 startups dedicated to addressing various environmental challenges.[5] The country’s climate-tech startups attracted over $9.5 billion[6] between 2018 and 2024, reflecting confidence in the sector’s potential to drive meaningful change. With strong support from government policies, academic institutions, and a vibrant venture capital community, Israel’s climate-tech ecosystem is eager to play a pivotal role in collaborative global efforts to combat climate change and promote sustainability. The fundamental assumption of this report is that collaborations in the MENA region will enhance these efforts.

Regional Climate Collaboration

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 (Bahrain, Egypt, Jordan, Morocco, the Palestinian Authority, Saudi Arabia, and the United Arab Emirates). 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 to:

• Introduce stakeholders in the MENA region to Israel’s ecosystem of climate innovation, showcasing its solutions to climate challenges.
  
  
• Familiarize Israeli stakeholders with opportunities, key institutions, and cultural considerations in MENA countries’ business environments.
  
  
• Identify effective collaboration opportunities, including in areas like desalination, hydrogen, and agrivoltaics, as well as governmental and business mechanisms such as bilateral pilot agreements.
  
  

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 relationships with their Arab and MENA counterparts. This report proceeds from the viewpoint that political disputes play a large role in chilling civilian relations in the MENA. Political agreements are thus a useful tool for encouraging collaboration, although not a necessary precondition for it to occur. We expect that regional collaborations will arise when economically sound.

Moreover, the situation has created a variety of new opportunities, such as the potential for integrating elements of climate innovation in the rehabilitation and reconstruction of the Gaza Strip in the post-war period. 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. Ultimately, the project seeks to drive meaningful progress in addressing shared climate challenges, promoting innovative solutions and collaborative frameworks.

Report Overview

Chapter 1 offers a comprehensive overview of Israel’s contributions to climate-tech, highlighting available solutions and addressing key challenges, to guide stakeholders seeking to engage with Israel’s innovation ecosystem. These are categorized into five key areas: (1) sustainable food systems and agriculture, (2) water technologies, (3) sustainable energy, (4) sustainable industrial manufacturing and the circular economy, and (5) sustainable mobility and supply chains. Each section features examples of Israeli companies.

While many companies are active in each area, the selected examples were chosen because they are leaders in their field (in terms of financial performance or market coverage), they have engaged with countries in the MENA, and/or they are part of this project’s working group.

This is followed by an analysis of Israel’s climate innovation ecosystem, emphasizing its strengths in research institutes and Tech Transfer Offices (TTOs), government support, and a strong entrepreneurial culture. The chapter then outlines three key challenges to scaling Israeli climate-tech that can be mitigated through collaboration with MENA countries, leveraging their strengths to create new opportunities.

Chapter 2 explores the climate innovation landscape across seven nations in the MENA in addition to Israel: Bahrain, Egypt, Jordan, Morocco, the Palestinian Authority (PA), the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE). It explores the climate innovation potential within each of these countries, highlighting how their unique resources, regulations, and institutions can facilitate or hinder effective responses to this increasingly urgent crisis, and through which avenues they may choose to cooperate with Israel and other regional partners.

Chapter 3 provides recommendations of actionable steps that will allow governments and the private sector to better understand both the shared challenges and the diverse assets that influence the respective pathways of climate development in the region. While agreements such as the Abraham Accords have opened a door between Israel and several countries in the region, effective collaboration requires proactive engagement and trust-building at both the individual and institutional levels. The private sector plays a critical role in fostering trade, with long-term partnerships and mutual understanding serving as the foundation for success. Any meaningful deployment of capital will necessitate a long-term horizon that prioritizes not only financial investment but also local development. This includes creating jobs, opening local manufacturing lines and business branches, sharing knowledge, and contributing to the broader ecosystem. As MENA countries advance their climate innovation strategies, establishing robust collaborative frameworks will be essential.

We focus on three key insights:

1. Aligning Israeli strategy and asset deployment with regional climate needs.
   
   
2. Elucidating market access strategies through a comprehensive mapping of each country’s climate strategies, goals, advantages, and tools.
   
   
3. Bridging structural gaps between different business cultures via a third-party model.
   
   

Please note that key sections of this document were written in 2024-2025, before the two rounds of military confrontation between Israel and Iran in June 2025 and March 2026. Consequently, the analysis and recommendations reflect the regional context at the time of writing. The geopolitical developments that result from these events may influence the possible frameworks for cooperation on climate-related innovation in the Middle East.

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[1] Jihad Azour, Hasan Dudu, and Ling Zhu. “How the Middle East and Central Asia Can Better Address Climate Challenges.” IMF. Nov. 29, 2023.

[2] Megha Merani. “Israel Trade with Arab Countries Up 16% in 2023”. AGBI, Apr 5, 2024.

[3] Yahya Anouti and Jon Blackburn. 2023 Middle East Climate Tech Report. PWC. 2023.

[4] Yahya Anouti and Jon Blackburn. 2024 Middle East Climate Tech Report. PWC. Dec. 10, 2024.

[5] “Israel’s State of Climate Investments 2021 - Capital Investments”. Israel Innovation Authority. Nov. 26, 2023.

[6] “New Report Shows Israel’s Climate Tech Sector Holding Strong with Close to 1,000 Active Companies and Global Backing, Despite Investment Drop”. Climate Tech Status Report 2024-2025, Israel Innovation Authority. Apr. 5, 2025.