The House has recently passed a law greenlighting the database's inception and mandating companies, plants and industries that have a proven record of high emission results to list them in the database.
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The new legislation mandates that such facilities report to the Environmental Protection Ministry, which in turn, will maintain the database.
The ministry believes that the database will include over 500 companies across Israel, including those who deal with chemicals, quarries, waste management and waste disposal sites.
The law aims to promote environmental transparency in Israel, as well as to create a database that will assist in making environmental policy decisions.
It will also help the ministry map out potential environmental threats.
According to the ministry, instating the database is part of Israel's compliance with OECD regulations.
"This law represents another significant step by Israel to bridge the gaps in environmental protection vis-à-vis other advanced nations worldwide," Environmental Protection Minister Gilad Erdan said.
"This database will afford full transparency regarding industries' environmental impact and will encourage them to reduce it."
Environmental Legislative Committee Chairman MK Dov Khenin added that, "Experience has taught us that mandatory reports go a long way in changing polluting industries' behavior.
"By passing his law," he concluded, "Israel is joining other leading nations worldwide that practice environmental transparency."