Cyprus’ total investment on climate change in both EU and public funds as well as private investments are estimated to amount to €3.1 billion by 2030, the Finance Ministry has said.

The European Union has set ambitious goals with regard to the green transition, adopting the Green Deal aspiring to render the Union as climate neutral by 2040. In this context the EU has also adopted the “Fit for 55” package which ups the EU interim target of reducing emissions from 40% to 55% by 2030 compared with 1990.

Moreover Russia’s invasion of Ukraine and the ensuing energy crisis prompted the EU countries to reconsider their strategy on energy security through alternative credible options, which culminated in the programme RepowerEU, which became an integral part of the Recovery and Resilience Fund.

“The Republic of Cyprus has programmed and utilises EU Funds to promote many projects that contribute to the green transition”, the Finance Ministry said in the Strategic Framework on Fiscal Policy, an annual document that precedes the annual state budget.

EU funds earmarked for green transition projects in Cyprus amount to €1.1 billion coming from the national Recovery and Resilience Plan and the Thalia programme on structural funds.

The Finance Ministry estimated that along with the necessary national contribution and the contribution from the private sector as part of the various subsidy schemes, such as renovation of buildings and electronic vehicle purchases, total investments will amount to €3.1 billion.

The promotion of a large number of investment projects and reforms with a direct contribution in achieving the green transition, remains a key parameter in the utilisation of the Recovery and Resilience Plan and the Social Cohesion Funds, the Ministry added.

The report also noted that apart from the direct contribution in tackling the impact of climate change and achieving the climate neutrality targets on the basis of the EU Green Deal directives, promoting climate growth is estimated to create new jobs and business opportunities.

Moreover, the Finance Ministry pointed out that Cyprus’ Long-Term Strategy for the economy, also called “Vision 2035” sets green economy as a basic element for the growth of the Cypriot economy.

“The basic priorities on the environment concern the contribution in tackling climate change, the protection of climate pressures and risk on the citizens’ health and welfare, as well as the promotion of circular economy and waste management,” the Ministry added.

On energy, the Ministry said that the key targets are associated with securing accessible energy for the entirety of the population, green transition concerning electricity generation and transport, and the utilisation of hydrocarbon in the island’s energy mix.

Furthermore, the Finance Ministry said that securing sustainable growth and the environment protection necessitates investing in green technologies and products, on renewable sources of energy, as well as on promoting smart and sustainable mobility.