Government to receive €1.2B for green transition and resilience plan

By Andreas Karamitas

Cyprus is set to receive a total of 1.2 billion euros from the Recovery and Resilience Plan (RRP). The Republic has already received the advance payment and the first tranche, with the second and third tranches on the horizon, and expectations for the 4th and 5th tranches in 2024. To access the funds, Cyprus must undertake 58 reforms and 75 investment projects.

Beneficiaries include government bodies, communities, universities, private sector organizations, and municipalities. These funds, managed by the Ministry of Finance, prioritize climate targets, with 45% of the total, amounting to €549 million, designated for sectors like energy, the environment, and climate change. The plan also integrates RepowerEU, providing additional financial support following economic challenges related to the conflict in Ukraine and sanctions against Russia.

Green transition
A significant portion of the funding is earmarked for green transition initiatives, with a focus on developing and adopting green technologies, energy efficiency, renewable energy sources, electrification, circular economy, climate change adaptation, and biodiversity. Plans include electrification and car replacement initiatives, energy efficiency incentives for large enterprises, and circular economy promotion.

Green projects
Nine projects aimed at promoting the green transition and climate neutrality are underway, concentrating on energy, storage, electrification, and carbon emission reduction. Funding includes support for renewable energy sources, energy-saving measures in homes, SME and NGO energy efficiency investments, and energy upgrades by local authorities. Additional projects focus on community resilience and greenhouse gas emission reduction in businesses.

Photovoltaics in hospitals
Efforts to decarbonize include subsidies for electric vehicles, withdrawal and replacement of polluting vehicles, and installation of publicly accessible charging stations. Funds are also allocated for residential PV systems and other green initiatives. Legislative efforts complement these projects, including laws to reduce air pollutants, phase out polluting vehicles, and introduce carbon taxes.

Framework
Parliament's role in implementing plans is crucial, with recent approvals and pending requests for disbursement tranches. Legislative efforts align with the milestones of the RRP, emphasizing the green transition through laws addressing air pollution, vehicle emissions, and carbon taxation.

[This article was translated from its Greek original]