Newsroom
Cyprus has collected hundreds of millions of euros in pollution fees over recent years, costs passed on to electricity consumers, yet much of that revenue is not being directed toward climate or clean energy projects as mandated by the European Union, raising concerns among environmental experts.
The fees, stemming from EU-mandated auctions of greenhouse gas emission allowances, are reflected in electricity bills through the Electricity Authority of Cyprus (EAC). Since 2018, consumers have paid €1.173 billion to cover emissions from conventional power generation.
Although a revised EU directive effective July 2023 requires member states to invest 100% of pollution revenue in green transition efforts, up from a previous 50% threshold, experts argue that Cyprus has fallen short.
Government records and EU data reveal that these funds have largely been redirected to ministerial budgets for projects only loosely related to carbon reduction. Expenditures include funding for public transport infrastructure, pedestrian zones, firefighting equipment, road lighting, and urban development.
In 2023, Cyprus received €114 million in pollution revenue. Notable allocations included €72.7 million to the Ministry of Transport for bus services and infrastructure, €6.6 million for firefighting equipment, and smaller amounts for bike lanes, sidewalk construction, and lighting upgrades. Just €538,000 went toward competitiveness initiatives in select economic sectors and housing improvements in the British Bases.
Critics point to a lack of transparency and insufficient focus on renewable energy or emissions reduction. Cyprus failed to provide detailed spending data for 2022, and until recently, was the only EU member state restricting access to such information.
“Because buses pass through” was the rationale once offered to parliamentary environment chair Charalambos Theopemptou regarding the energy relevance of roadwork in Aglantzia, showcasing what some view as a pattern of misaligned priorities.
Despite mounting costs to households, businesses, and municipalities, experts say the transition from polluting energy sources remains incomplete and uneven, raising questions about whether consumers are truly getting the environmental return on their rising energy bills.
