Starting from the beginning of 2024, consumers will be facing a new levy with the incorporation of maritime transportation into the Emissions Trading System (ETS).
This development is poised to impact the costs associated with product imports and ferry tickets, alongside an anticipated rise in airfare as aviation is brought under the ETS umbrella.
Furthermore, in the upcoming year, consumers are set to encounter increased electricity bills, attributed to an additional €270 million allocated for the procurement of greenhouse gas emission rights.
According to Adonis Yiasemides, the Director-General of the Cyprus Electricity Authority, these emission costs will be transferred as an added expense in electricity generation, directly affecting consumers. Projections from the Cyprus Electricity Authority estimate emissions reaching 3.1 million in 2024, with an average expected price of €88.4 per ton, culminating in a total of €270 million.
Data from the Cyprus Electricity Authority for the period between 2017 and 2022 reveals a total expenditure of €570 million for the acquisition of emission rights, a cost subsequently passed on to consumers.
The looming carbon dioxide emissions regulations, effective from January 1, 2027, will not spare buildings and road transport, resulting in augmented costs for heating and transportation fuels. This, in turn, will lead to additional expenses for car usage and building heating.
During a recent session of the House Control Committee, Lakis Mesimeris, the first official of the Department of Environment, shed light on these developments while discussing the Auditor General’s special report titled “Have the actions promoted by the Republic of Cyprus achieved the desired results in reducing greenhouse gas emissions?”
Mesimeris acknowledged the significant economic and household costs associated with these changes, emphasising the challenging nature of these realities. He stressed the institutional obligation to adapt to these new circumstances, pointing out that Cyprus, in accordance with the national energy and climate plan, must now strive for a 32% reduction in greenhouse gas emissions by 2030, up from the initially targeted 24%.
Achieving this goal, Mesimeris explained, requires the circulation of approximately 80,000 electric vehicles on Cyprus roads by 2030.
However, he noted that the necessary workforce for the required building upgrades is currently unavailable. The Department of Environment representative highlighted the collective contribution required to meet these goals and underscored the need for a stringent monitoring mechanism, stating, “We cannot afford not to implement what we decide.”