Filenews 28 October 2025 - by Angelos Nikolaou
Cyprus was at the center of the European Council's deliberations in Brussels, calling for a fairer and more realistic implementation of European climate policies, culminating in the postponement of the launch of the new Emissions Trading System (ETS2) for road transport and building heating.
Nicosia, in coordination with a group of member states, including Poland, Italy, the Czech Republic, Malta, Bulgaria, Romania, Slovakia and Estonia, succeeded in including a relevant reference in the European Council Conclusions, which calls on the European Commission to consider measures to normalize prices and protect households and small and medium-sized enterprises.
The Republic of Cyprus supports the principle of carbon pricing as a tool to reduce emissions, but points out, however, that the early implementation of the ETS2 from 2027 may cause serious social and economic imbalances, especially in small and island states. Nicosia proposes to postpone the implementation until 2030, in order to give time for the preparation of markets, the maturation of Social Climate Plans and the stabilization of energy prices.
«The postponement is not a weakening of ambition, but a prerequisite for a realistic and socially acceptable green transition," government sources said, underlining that Cyprus is not asking for exceptions, but for equal treatment based on the real potential of the economies. The Cypriot side also stressed the need to put the Social Climate Fund into operation before the start of ETS2, so that there is no sudden financial burden on vulnerable households and small businesses.
Cyprus puts forward a coherent package of energy priorities, which focuses on: The development of energy storage systems, the strengthening of energy interconnections with the European grid, the promotion of Renewable Energy Sources and the support of small and medium-sized enterprises that will bear the burden of the transition. At the same time, Nicosia calls for the particularities of the islands to be recognized, both in relation to the increased emissions caused by natural disasters, and the limited CO₂ absorption capabilities due to a small forest volume.
Position on the new 2040 climate target
On the second major issue of the Summit, which concerns the new European emissions reduction target by 2040, Cyprus was in favour of the establishment of an ambitious but realistic target, which will be accompanied by an impact analysis by member state and financial support tools.
Nicosia requested that the Conclusions include references to the specificities of island economies, energy infrastructure needs (such as interconnections and energy storage), as well as natural removals management (LULUCF).
«For Cyprus, the green transition must be not only ambitious, but also fair. Island countries need time, resources and infrastructure to achieve the same goals as Europe's major states," a government official noted. With its interventions, Cyprus has made it clear that the balance between climate ambition and economic resilience is at the core of the European green policy. The country supports the European path towards climate neutrality by 2050, but calls for this path to be socially balanced and economically viable, in order to ensure European cohesion and public acceptance of the reforms.
The European Council tasked the European Commission to review the timeline for the implementation of ETS2 and propose alternative scenarios or transitional arrangements in the coming months. Decisions on the 2040 target are expected to be taken before COP30, so that the EU can come to the international negotiations with a united and credible position.
Cyprus, as government sources emphasize, will continue to work for a green transition that leaves no one behind, defending the needs and particularities of Europe's small and island states.
Initiatives and targets to tackle climate change by 2030
Cyprus is stepping up its efforts to tackle climate change, promoting a series of important policies and measures with a 2030 horizon and the ambitious goal of climate neutrality by 2050. The Department of Environment, guided by the European and international strategy, activates tools and legislative frameworks aimed at reducing greenhouse gas emissions and adapting the country to the consequences of the climate crisis.
The Republic of Cyprus has already incorporated into national law the second part of the relevant EU Directive, through which the new Emissions Trading System (ETS2) is established. This new system expands the current market for emission allowances to the sectors of buildings, road transport and small industry, bringing the daily activities of citizens and businesses closer to the core of climate policies.
For the sectors not covered by the Emissions Trading System (ETS), the National Energy and Climate Plan 2021-2030 is already being implemented with the aim of reducing emissions by 32% compared to 2005 levels. The review of the monitoring process for the implementation of the plan is expected to be completed in 2025, enhancing transparency and accountability in climate policy.
The Department of Environment implements through the Recovery and Resilience Plan the "grant scheme to encourage the reduction of greenhouse gas emissions in businesses". The aim is to support businesses to design and implement action plans to reduce emissions, but also to strengthen the green culture through circular economy and sustainable development practices. The plan, in addition, seeks to make businesses participate in achieving the national reduction target of 32%.
A decisive step towards climate neutrality is the promotion and passing, by the end of 2025, of the first National Climate Law. The law will include binding targets, carbon budgets, and monitoring mechanisms, ensuring a coherent strategy and institutional continuity. At the same time, it is expected to strengthen the country's resilience to climate impacts, while it will also be a tool to attract investments in the fields of green energy, infrastructure and sustainable transport.
Cyprus is already implementing the National Strategy for Adaptation to Climate Change and its action plan, while their update is expected within 2025, with EU funding. The strategy includes actions to strengthen resilience to extreme weather events, sustainable water management, and the adaptation of critical infrastructure to the new climate data.
Cyprus, as a member of the EU and the UN Framework Convention on Climate Change, has undertaken a number of obligations for the inventory and forecasting of emissions, the submission of national reports, and the participation in international conferences and monitoring mechanisms. At the same time, the monitoring and regulation of fluorinated greenhouse gases is strengthened, with the implementation of plans for the recovery and destruction of prohibited substances.
