Financial Instruments for Israel’s Energy Transition explores how electricity and environmental derivatives can unlock the next wave of investment in Israel’s power system and clean energy infrastructure. Drawing on global experience and new applied research, the Lab shows how well-designed financial products can help producers, suppliers, and large consumers manage price volatility, attract institutional capital, and accelerate the shift to renewables and lower carbon emissions.​

Through concrete international case studies, policy recommendations, and a practical implementation roadmap, this report invites policymakers, investors, and market participants to see derivatives not as speculative tools, but as essential market infrastructure for building a more resilient, secure, and sustainable Israeli energy economy.  It is based on two sessions of our Financial Innovations Lab on January 29, 2024 and September 4, 2025 engaging all the ecosystem of financial expertise, clean tech, policy, and regulators.  The work was supported in part by a grant from the Chief Scientist Office of the Ministry of Energy and Infrastructure and executed by our Milken Innovation Center including faculty, researchers and Milken Innovation Center Fellows supporting this initiative.