Filenews 24 July 2023
Cyprus is expected to face higher temperatures and less rainfall in the coming years and this is predicted to increase the risk of desertification and climate change-related disasters such as sudden droughts and forest fires.
The European Commission in its latest report on Cyprus, on the National Reform Programme for 2023, notes that tackling over-abstraction of water is key to mitigating the negative impacts of water scarcity on agriculture, tourism, industry, biodiversity and public health.
Low insurance coverage
The report states that sustainable water management and effective implementation of the recovery and resilience plan measures will help reduce high stress on water resources and negative impacts on water-dependent sectors.
They will also help protect biodiversity and public health and reduce the need for costly water desalination and water imports in the future. From 1980 to 2020, of the damages due to disasters, only about 2% were insured in Cyprus.
Cyprus appears to be particularly vulnerable to forest fires. The existing protection gap with regard to forest fires suggests that insurance coverage remains low compared to the projected risk, and this could lead to losses to be covered by the public sector, potentially posing a risk to public finances.
Slow green transition
Action to achieve the green transition in Cyprus is progressing slowly and further measures are worth taking. Despite some action by Cyprus, more will be needed to achieve the green targets set under the Fit for 55 package.
According to the report, the green transition is slow and needs to be stimulated. In particular, action is needed to harness the island's renewable energy production potential, improve energy efficiency, upskill the workforce for the green economy and develop more sustainable transport solutions.
Labour shortage
In Cyprus, as the green transition begins, labour shortages in key sectors have increased in recent years, linked to a lack of relevant skills and creating barriers to the transition to a net-zero greenhouse gas emissions economy.
In 2022, labour shortages were reported in Cyprus in 11 occupations requiring specific skills or knowledge for the green transition. The job vacancy rate increased in key sectors such as construction (from 0.6% in 2015 to 1.3% in 2021) and manufacturing (from 0.6% in 2015 to 3.1% in 2021), with only manufacturing exceeding the EU average (1.9%) in 2021.
Upskilling and reskilling for the green transition, including those most affected, as well as promoting inclusive labour markets are key ways to accelerate the transition to net zero emissions and ensure that the transition is socially fair.
Energy efficiency in old houses
The recovery and resilience plan also includes measures to encourage local communities' transition to climate change mitigation and facilitate adaptation action.
This includes calls for proposals for investments promoting the energy efficiency of buildings for small and medium-sized enterprises, communities and the public sector, as well as calls for investments in renewable energy use and energy saving by public authorities and NGOs.
These measures will reduce both primary and final energy consumption as well as greenhouse gas emissions produced by buildings. They should encourage the use of renewable energy sources in old dwellings, including energy-poor households, households with people with disabilities and old infrastructure used by local authorities.
