Access to clean, affordable, sustainable energy is an enabling factor for economic development and poverty reduction. The cost of electricity in Palestine is the highest in the Arab world. On average Palestinians spend 10 percent of their income on energy costs. Industrial energy efficiency, and renewable energy, in Palestine will reduce dependence on imported electricity thereby reducing energy costs for households.

Palestine’s energy sector is one of the most promising and attractive sectors for domestic and foreign investments. Industrial energy efficiency can boost business competitiveness and help secure the long term sustainability of Palestine’s primary industrial sector which include food, furniture and metal. Ensuring the long-term sustainability of the region’s six largest industrial sectors through energy efficiency would help to protect over 40,000 jobs and facilitate the creation of new skills in an emerging green economy.

Palestine’s geographic location in the Judean Desert means that access to water is an imperative. Because of increased temperatures, the water collected from rainfall is subject to evaporation from extreme heat. The ability of the Palestinian government to safeguard its environment and contribute to international climate goals is directly linked to its lack of control over its energy resources. Efficient energy consumption particularly in the industrial sector, as well as the development of a local renewable energy sector for industrial enterprises, will improve Palestine’s ability to reduce its carbon emissions.