Israel is relatively small, densely populated and water-scarce. The fast pace of its economic and population growth in the 2000s has intensified what were already significant pressures on the environment. Until comparatively recently, environment was not a major policy priority. However, in the last few years the government has promoted a more proactive approach to the development of environmental policy and has sought to develop synergies with economic policies. Since 2003, government ministries have been required to prepare sustainable development strategies. This has helped to raise environmental awareness in line ministries, and to foster analysis of how potentially negative environmental impacts of sectoral policies could be mitigated. However, the quality of ministerial strategies has been mixed and implementation has often been slow. Israel should develop a whole-of-government approach to sustainable development and green growth. It should also enhance the use of economic assessment tools to better integrate economic and environmental decision making.