The Cabinet approved on Wednesday a new grants scheme to encourage greenhouse gas emission reductions in businesses.

According to the proposal presented to the Cabinet, the Scheme will be implemented within the framework of the policy of the Ministry of Agriculture, Rural Development and Environment, in particular the Department of Environment, to decarbonise and achieve the European Union's climate objectives, as set out in the administration's programme.

Specifically, according to a press release issued by the Presidency, the Grants Scheme contributes to the implementation of additional measures to the existing policies and measures of the National Energy and Climate Plan for the period 2021-2030, encouraging the beneficiaries, i.e. businesses, to participate in a total transformation of the Cypriot economy with the ultimate goal of decarbonisation.

The project will subsidise the preparation of documents and studies, which will include the monitoring of greenhouse gas emissions resulting from the businesses participating in the project, and the preparation of an action plan with specific investments/actions aiming at a validated reduction of greenhouse gas emissions by 2030.

According to the press release, the scheme aims to help businesses understand the medium and long-term impacts of climate change actions on their operations, with the ultimate goal of actually reducing greenhouse gas emissions in their operations and/or domestic supply chains at a later stage.

More specifically, the beneficiaries of this scheme will be eligible, under certain conditions, to become beneficiaries of a planned subsequent grant scheme to support future investments to reduce greenhouse gas emissions, thus contributing to the achievement of the national greenhouse gas emission reduction target.

The grants scheme is included in the Recovery and Resilience Plan (RRP) of Cyprus for the period 2021-2026. It will be funded by the European Union's Recovery and Resilience Facility (RRF), the central instrument of NextGenerationEU, the temporary instrument to finance the EU's recovery and exit from the crisis caused by the COVID-19 pandemic.

The total amount allocated for the financing of the scheme during the implementation period is €5 million.

Beneficiaries of the scheme are enterprises operating in the areas where effective control is exercised by the Republic of Cyprus and which meet the conditions for participation described in the scheme's implementation guide.