To benefit from the support of the Recovery and Resilience Facility set up by the EU in the aftermath of the COVID-19-induced economic crisis, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation. Each plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient. The Commission validates the plan after which it effectively enters in force and EU subsidies can start flowing towards the member state.
The European Commission has given a positive assessment to Cyprus recovery and resilience plan, consisting of €1 billion in grants and €200 million in loans. 41% of the plan’s total allocation for reforms and investments support climate objectives, including:
The European Commission has given a positive assessment to Cyprus recovery and resilience plan, consisting of €1 billion in grants and €200 million in loans. 41% of the plan’s total allocation for reforms and investments support climate objectives, including:
- Green taxation: introducing a carbon tax for fuels, a gradual introduction of a levy on water, and a charge on landfill waste.
- Energy efficiency and renewables: financing various support schemes to implement energy efficiency measures and renewable energy investments and to combat energy poverty. €89 million
- Energy interconnector: contributing to the EuroAsia Interconnector project, which will connect Cyprus to the EU electricity network and boost renewable energy production. €100 million
- Promoting sustainable and green mobility: encouraging a shift from private cars to public transport, cycling, walking, and promoting the use of clean vehicles. €87 million
