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The European Union is looking at pollution and discarded electronics to help fund its next seven-year budget, and Cyprus’ poor record on collecting old devices could make the plan particularly relevant to the island.
EU governments are moving closer to supporting two new sources of income for the bloc’s budget, according to a Politico report.
The first would use money collected from a carbon charge on pollution-heavy goods imported into the EU. The second would penalize countries for electronic waste that is not properly collected.
In simple terms, Brussels needs more money for the EU budget covering 2028 to 2034. Creating income at EU level would reduce the amount governments must pay directly from their national budgets.
This does not necessarily mean Cypriot households will suddenly find an “EU electronics tax” on their electricity bills or phone receipts. The payments would initially be handled by governments.
However, the cost could eventually reach consumers indirectly if Cyprus introduces new fees or tighter rules to improve the collection of old televisions, computers, refrigerators, phones, and other electrical devices.
That matters because Cyprus is near the bottom of the European recycling table. In 2023, only 3.8 kilograms of electronic waste per person were officially collected on the island, the lowest figure in the EU. The European average was 11.6 kilograms.
A charge linked to uncollected electronic waste would therefore give the government a strong financial reason to make recycling easier and more effective. For the public, that could mean more collection points, tougher rules for retailers, or stronger incentives to hand in old devices instead of leaving them in a cupboard or next to a rubbish bin.
The other proposal involves the EU’s Carbon Border Adjustment Mechanism, better known as CBAM. It places a carbon cost on certain pollution-heavy products entering Europe, including cement, steel, aluminum, and fertilizers.
Under the current proposal, governments would send 75% of the money collected through CBAM to the EU budget and keep the remaining 25%.
For Cyprus, the effect could be felt through the price of some imported materials, particularly in construction and agriculture. However, the final impact will depend on where businesses import their products from and whether suppliers pass the extra cost on to customers.
The two measures are gaining support because governments have rejected or questioned several other ideas. Proposed EU-wide charges on company profits, tobacco, and carbon-market income have met resistance, while suggestions involving online gambling, cryptocurrency companies, and large technology firms are also struggling to win approval.
The Commission estimates that the electronic-waste contribution could raise €17.9 billion a year, while the carbon-import measure could bring in about €1.6 billion annually.
EU governments want to reach a budget agreement by the end of 2026, before elections in France, Spain, and Italy risk making an already difficult negotiation even harder. An agreement is also needed early enough for funding programs to continue without interruption when the new budget begins in 2028.
For the average Cypriot, the immediate message is not that Brussels is about to tax the broken toaster in the storeroom. It is that failing to collect and recycle old electronics could eventually cost the country money, and taxpayers rarely remain completely untouched when the state receives a new bill.
*With information from Politico and Europa
