In response to the Covid-19 pandemic and economic crisis, the government of Cyprus unveileld their recovery and resilience plan, aiming for a long term and green recovery. The plan, as endorsed by the EU Commission, includes 1 billion EUR in grants and 200 million EUR in loans. 41% of the plan's total allocation for reforms and investments will be used to support climate objectives, above the EU's minimum share at 37%.
The green transition will be shaped by :
-green taxation, introducing a cabron tax for fuels.
-energy efficiency and renewables, financing various support schemes to implement energy efficiency measures and renewable energy investments, as well as combating energy poverty (89 million EUR)
-energy interconnector: contributing to the EuroAsia interconnector project, which will connect Cyprus to the EU electricity network and boost renewable energy production (100 million EUR)
-promoting sustainable and green mobility: encouraging a shift from private cars to public transport, cycling, walking, and promoting the use of clean vehicles (91 million EUR).