Filenews 22 September 2021 - by Angelos Nikolaou
The situation for households, especially vulnerable households, is expected to be chaotic from the new policies being considered at European level and addressing a great many areas such as energy, climate, land use and transport. This is a package of proposals recently adopted by the Commission that provide for compliance costs, in particular environmental ones, since the target of reducing net greenhouse gas emissions by at least 55% by 2030 should be achieved. That is, the Republic of Cyprus is called upon, through policies that it will implement in the next decade, to achieve the goals agreed in the European Climate Law and for the radical transformation of the economy and society for a fairer and greener future.
It is noted that Cyprus has not even come close to the target it had committed to implement by 2020, which reached 24%. It is now being asked to completely change its model in order to stop the overexploitation of natural resources, otherwise Brussels will be watching closely and imposing fines. Through European green taxation, Cyprus has an obligation to shift the burden of taxation towards the most environmentally damaging activities. The issue was addressed at yesterday's session of parliament's Committee on Foreign and European Affairs, which set it high on its priorities and decided to monitor it from the outset.
What has been said by officials is that while in the medium and long term the benefits of EU climate policies clearly outweigh the costs of transition, climate policies risk exerting additional pressure on vulnerable households, micro-enterprises and transport users in the short term. After all, who can explain to a grandfather who lives in the mountainous areas and has his diesel double-cabin that he will pay a lot of taxes on fuel, while at the same time he will not be able to change it with a low-emission vehicle, because he simply does not have the money. As has been said, the design of the policies in the new package should be fairly distributed among the costs of tackling and adapting to climate change. So there will come new increases in fuel, electricity, air transport and ship fares.
Through European policy, carbon pricing instruments increase revenues that can be reinvested to stimulate innovation, economic growth and investment in clean technologies. This is the so-called Social Climate Fund that will provide specific funding to Member States to help citizens finance investments in energy efficiency, new heating and cooling systems and cleaner travel. The Social Climate Fund will be financed from the EU budget, using an amount equivalent to 25% of the expected revenues from emissions trading from buildings and road transport fuels. Specifically, it will provide funding of €150 million. for Cyprus for the period 2025-2032, based on a targeted amendment of the multiannual financial framework.
The Commission's proposals will allow for the necessary acceleration of greenhouse gas emission reductions over the next decade. They combine the implementation of emissions trading in new areas and the tightening of the existing EU trading system, increasing the use of renewables, higher energy efficiency, faster deployment of low-emission means of transport, as well as infrastructure and fuels to support them, alignment of tax policies with the objectives of the European Green Deal, measures to prevent carbon leakage; and tools for the conservation and development of natural carbon sinks.
The benefits of direct action to protect people and the planet are clear: cleaner air, cooler and greener cities, healthier citizens, lower energy use and bills, European jobs, technological and industrial opportunities, more space for nature and a healthier planet for future generations. The challenge at the heart of Europe's green transition is to ensure that the benefits and opportunities arising from it are made available to all as quickly and fairly as possible. Using the various policy tools available at EU level, we can ensure that the pace of change is adequate, but does not cause excessive shocks.
Lunch: Not acting is not an option
For Cyprus, it will be a particularly great challenge to be able to meet the new commitments because our specificity as a country, the isolated energy system, the island character and the scale of size are limiting factors that make the effort difficult, said the senior officer of the Department of Environment, Theodoulos Mesimeri. However, he said the direction is one-way because non-action is not an option since it will entail particular compliance costs. In conclusion, he said, the sooner we realize it and redesign policies and measures in the new data, the greater the benefit we will have and we will avoid any additional financial burdens.
Sustainable development that respects the environment
The full and unconditional and unconditional implementation of the National Recovery Plan is extremely important for the implementation of the European Green Deal, perhaps the largest reform effort of the European Union since its establishment. In his statements after the session, the President of the Commission, DISY MP Harris Georgiades said that the Green Deal is an effort that will create a completely new economic productive base, which will be based on sustainable development, will respect the environment and will lead by 2050 to a completely climate-neutral EU.
Funding €150 million for Cyprus
The director of the European Coordination and Development Programmes (EPCD), Georgia Christofides, said that taxation is one of the tools of the package. He added that increases in fuel are foreseen, the emissions trading system is changed and the transport and heating fuels of the houses are put into the system. He spoke of an investment program with green projects, noting that a change in the economy is needed to go to circular with cleaner energy. He added that Cyprus accounts for €150 million. from the fund and we need to change the way we produce and consume. Energy Service officer Katerina Piripitsi said that a burden on vulnerable groups is expected and to this end a study will be carried out that will define precisely the definition of energy poverty, so that through the Fund these groups can be supported.
Investments in green actions
The General Director of the Ministry of Finance, George Pantelis, referred to the actions, policies and key actions of the Green Deal. He talked about clean, affordable and safe energy, he referred to the sector of industry and how greenhouse gas emissions will affect transport, the greening of the agricultural sector, but also the funding provided for Cyprus by the Green Deal. Referring to the recovery and resilience plan, Mr. Pantelis pointed out that 41% of the funds out of a total of €1.2 billion will be allocated to the programme. corresponding to Cyprus will be invested in green actions.
At the same time, he said that the new European law revised the target of reducing emissions from 40% today to 55%. The proposals, he said, include air transport and maritime transport.
He also referred to the revision of the energy tax directive and the infrastructure to be made for alternative fuels. He explained that the burden on polluting products is being promoted. As he said, a gas emission charge is being promoted on six products such as iron, fertilizers and electricity generation.
