Pafos Live 3 June 2025
The European Commission, through the Commissioner for Climate, Zero Emissions and Clean Growth, Wopke Hoekstra, stresses that the reduction of taxes on electricity and industry is allowed and its intention is to issue a recommendation to Member States by the end of 2025, for a reduction in taxes on electricity for households and energy-intensive industries. This statement was made in response to a question by the MEP of the Democratic Rally (DISY) and the European People's Party (EPP), Michalis Hadjipantela.
Specifically, when asked what tools, financial instruments or mechanisms are available to support Cyprus in filling its infrastructure gaps and mitigating transition costs for households, the European Commissioner referred to the Affordable Energy Action Plan and the Clean Industry Agreement, while stressing that "in addition to the Structural Funds and the Cohesion Fund, The Social Climate Fund aims to support the just transition towards climate neutrality". According to Mr. Hoekstra, the EU will provide special funding to member states so that the most affected vulnerable groups can receive direct support.
Also, in response to Mr. Hadjipantela's question, whether the Commission can proceed with a postponement of green taxation, the Commissioner clarified that: "the reform of green taxation is a key element of Cyprus' recovery and resilience plan and aims to encourage its more efficient use of resources and incentivising the uptake of renewable energy sources". At the same time, he noted that "the adoption of the above in Cyprus is vital, given that carbon prices and recycling of municipal waste lag behind the rest of Europe, while water scarcity is a challenge".
