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A Climate Neutrality Strategy for Cyprus

Addressing the Trilemma of Environmental Sustainability, Energy Security, and Cost-Competitiveness with Techno-Economic and Behavioural Approaches

Project Coordinator & Principal Researcher: Prof Theodoros Zachariadis

Duration: March 2024 - February 2025

Overview

Cyprus is located in one of the world’s most vulnerable regions to climate change. At the same time, being a European Union Member State, the country is committed to the EU’s ambitious climate policy goals that are included in the European Green Deal and have been adopted in the European Climate Law. According to the latter, the Republic of Cyprus must contribute to achieving the EU-wide target of reduction of greenhouse gas emissions by 55% in 2030 compared to 1990 (‘Fit-for-55’ policy package) and net zero greenhouse gas emissions by 2050. It is well documented that Cyprus is still characterized by very large dependence on imported fossil fuels and high greenhouse gas emissions per capita; this calls for swift action towards decarbonization and diversification of energy supply, which can also improve the country’s energy security and affordability.

Since 2021, the country has secured very substantial EU funds of more than 2 billion Euros for its green transition, from the National Recovery and Resilience Plan (RRP), the extra ‘REPowerEU’ chapter of the revised RRP, the European Structural and Investment Funds, the Just Transition Fund, and the Connecting Europe Facility. Still, decarbonization of the Cypriot economy is evolving slowly.

Against this background, the project has the following objectives:

1) To evaluate the plans for energy diversification and green transition of Cyprus as reflected in the projects that are included under the RRP as well as under all other EU funds that were mentioned above.

2) To explore the impact of the 2030 and 2050 decarbonisation targets on the Cypriot economy – the investment needs, the production structure, and an outline of the fiscal and broader economic effects.

3) To explore synergies and trade-offs between long-term environmental sustainability and energy security in Cyprus and identify policy insights that can inform policymakers in other countries – especially the Eastern Mediterranean and Middle East region – about the interaction of climate strategies and energy security.


Research Team

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Project Coordinator and Principal Researcher: Professor Theodoros Zachariadis, The Cyprus Institute 

 

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Researcher: Dr Constantinos Taliotis, Associate Research Scientist, The Cyprus Institute 

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Researcher: Dr Pantelis Solomou, Postdoctoral Research Fellow, The Cyprus Institute

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Researcher: Dr Melina Moleskis, Postdoctoral Research Fellow, The Cyprus Institute