Israel: Director General's Order 4.82 -- ILS 300 Million Industrial Energy-Efficiency Grant Programme

Mechanism

Order 4.82 is a domestic industrial-subsidy channel run by Israel's Investment and Industrial and Economic Development Authority. It offers two support tracks to manufacturing facilities:

• Track A -- converting fuel-fired systems to electricity, hydrogen, or

natural gas, and improving fuel-consumption efficiency.

• Track B -- improving electricity consumption and reducing associated

emissions.

Grants cover up to 40% of the qualifying investment (50% for small-aid applicants), with an additional ILS 10,000 available to projects that also handle regulated refrigerant/insulation materials as part of equipment scrapping. The scheme is funded to roughly ILS 300 million and closed its application window on 15 September 2025.

Why severity 2

A single-country domestic decarbonization/efficiency grant with no explicit foreign-facing trade restriction and no named beneficiary companies. Scale (~$81m) and quantified support rates place it in the same band as other single-programme EU/OECD industrial decarbonization subsidies already in the register (e.g. Spain PERTE descarbonizacion tranches), rather than a economy-wide flagship scheme.

Downstream implications

• Domestic Israeli manufacturers reduce energy-input costs, marginally

improving cost competitiveness versus importers in energy-intensive segments.

• Adds to the broader 2025-26 wave of Western/allied decarbonization

industrial-subsidy filings tracked under the western-industrial-policy-stack theme.

Open questions

• Which facilities/sectors drew the largest share of the ILS 300m pool --

no beneficiary list has surfaced yet.

• Whether the Authority renews or expands the order line for a subsequent

fiscal year.