Major tourism investments, energy and development infrastructure, as well as public works in Cyprus are pending, as the Environmental Authority has suspended the examination of due assessment requests for projects affecting Special Areas of Conservation (SACs). The reason for this is the recent ruling of the Court of Justice of the European Union (CJEU), according to which it is legally impossible to carry out a valid appropriate impact assessment without the prior establishment of specific and clear conservation objectives for each protected area of the Natura 2000 network.
The conflict between the Audit Office and the Ministry of Agriculture, Rural Development and Environment (YGAAP) regarding the construction projects of Phase A in the Akamas National Forest Park (SAR) brought the issue back to the forefront.
This development creates a knock-on effect on the development sector. Applicants and investors with long-range proposals are now in a state of waiting, as the Environmental Authority cannot examine applications and issue approvals without the appropriate institutional framework.
All eyes are now on the competent government departments of Environment and Forests, as well as on the Game Service, which are called upon to run at an express pace the issuance of the relevant Decrees and conservation objectives, through the working group set up for this purpose and the Scientific Committee.
It is noted that the working groups were established from April 2024 and according to the Ministry of Agriculture faced technical and scientific obstacles, as there was a lack of sufficient data on the conservation status of species and habitats, while at the same time there were coordination problems between the stakeholders involved. Until their completion, the protection of biodiversity is a top priority, at the cost of the time delay in the environmental licensing of projects.
According to the judgment issued by the CJEU on July 16, 2026, Article 6(3) of the Habitats Directive 92/43/EEC is now strictly interpreted. In particular, it is a necessary condition that where specific conservation objectives have not been established in advance for a Special Protection Area (SPA) or Special Area of Conservation (SAC), the competent national authority cannot carry out a valid Appropriate Assessment.
While geographical area boundaries can be defined without these objectives, assessing the risk or potential significant impacts of a project is impossible without pre-defined objectives
The CJEU rejected requests to limit the temporal effects of the decision, giving it retroactive effect, which applies to all pending projects. Therefore, the Department for the Environment cannot continue to examine submitted requests for due assessment without prior setting of the specific objectives for SAC areas.
Guidance from the Legal Service
With an urgent letter to the Ministry of Agriculture, the Legal Service of the Republic clarifies the landscape. In particular, it underlines that the decision fully applies to the Special Areas of Conservation.
It emphasizes that the Department of Environment must suspend the examination of both new and pending requests for due assessment in SACs until the completion of the setting of specific conservation objectives.
As regards Special Protection Areas (SPAs), the examination of applications can only continue if the conservation objectives included in the existing Management Plans implemented by the Game and Fauna Service are clear, precise and meet the requirements of European case law.
For projects that have already received environmental approval but have not been completed, a case-by-case examination is required. The principle of good faith and the risk of serious disruption are taken into account, and the decision does not affect projects that have already been completed.
Confrontation between the Audit Office and the Ministry of Agriculture
The issue was strongly highlighted in the Special Report of the Audit Office on the projects in the Akamas SAR. The Audit Office pointed out that the Environmental Authority issued a Special Ecological Assessment Report (EOA) and a Strategic Environmental Impact Study (SEIA) Opinion in 2021 without statutory specific conservation objectives, which led to serious weaknesses, suspension of works and the need for remedies. It is also recalled that Cyprus was referred to the CJEU in March 2024 by the European Commission for non-compliance with the Habitats Directive. According to the European Commission, no specific conservation measures had been established for 28 of the 37 Special Areas of Conservation, while the conservation objectives in five areas were deemed insufficient.
In response, the Director-General of the Directorate-General for the Environment argues that at the time of the examination of the Plan in Akamas there was extensive scientific knowledge, habitat mapping and management plans used for decision-making.
He added that the evaluation was made on the basis of administrative practice and guidelines that were in force at the material time, prior to the issuance of the recent CJEU ruling.
The Ministry is at an advanced stage of preparing draft Protection and Management Decrees, as well as establishing specific conservation objectives for Akamas and other Natura 2000 areas, in collaboration with the Legal Service, a process that is expected to be completed within the next few weeks.
Cyprus in the Commission's sights
On 18 February 2026, the European Commission registered a complaint against Cyprus, alleging non-compliance with Articles 4(4) and 6(1) of the Habitats Directive (92/43/EEC). The Commission argues that the Republic of Cyprus has failed to establish appropriate conservation objectives and measures for Sites of Community Importance (SCIs) within its territory within the prescribed deadlines.
The appeal was published in the EU's Official Journal in April 2026, bringing environmentally sensitive areas to the forefront of the dispute.
The Commission asks the Court to declare that the Republic of Cyprus has failed to establish site-specific detailed conservation objectives for the following 5 Special Areas of Conservation (SACs): Larnaca Salt Lakes, Islands Sea Area, Machairas Forest, Lake Oroklini and Cape Greco.
At the same time, the Commission requests to adopt the necessary conservation measures for the following 24 SACs: Alykos Potamos – Agios Sozomenos, Madari – Papoutsa, Hazelnut Forest of Pitsilia, Karkotis Valley, Episkopi of Moros Nero, Koili – Mavrokolympos, Park Area, Crete Marottos Area, Cape Aspro – Petra tou Romiou, Limnati Valley, Asgata Area, Larnaca Salt Lakes, Lefkara Area, Islands Sea Area, Moulia Sea Area, Polis – Gialia Area, Akamas Peninsula, Machairas Forest, Limassol Forest, Troodos National Forest Park, Stavrovouni Forest, Cape Greco, Rizoelia National Forest Park and Paphos Forest, and failing to establish appropriate conservation measures for the following 4 SACs: Diarizos Valley, Vouni Panagias, Xeros Potamos, Oroklini Lake.
