Republic of Cyprus Second Voluntary National Report - Sustainable development goals

114 10. BUILDING FORWARD BETTER— NEXT STEPS With the COVID-19 pandemic still being a very visible and massively disruptive force, the need for resilience becomes imperative. The pandemic underscores the complex interconnected system that our world has become and thus we are compelled to reevaluate, reorient and transform ourselves elevating the importance of a holistic thinking approach. Strengthening the Economy The COVID-19 crisis took a toll on the economy and its social impact is extensive. The necessary measures taken by the Government to protect public health as well as to address the ramifications of the country’s heavy reliance on the services industries, including travel and tourism, on the one hand mitigated the negative impact of growth, but on the other hand unavoidably had a significant impact on public finances. Cyprus’ economic model is in the process of changing in order to reflect the ambitions of its society and to become more sustainable, livable and more resilient to shocks. The adoption of a Long-Term Strategy by the end of 2021 focuses on introducing a robust new growth model reflecting the country’s potential for economically, socially and environmentally sustainable long-term growth and welfare. Although economic performance is important for growth, the broader implications to competitiveness, productivity, innovation, skills and sustainability are equally important. As a result, the new growth model of Cyprus builds on the premises of diversification, resilience, self- sustainability, liveability, the green economy, digitalisation as well as inclusiveness. At the same time, two focal areas are of paramount importance: the green and the digi- tal transformation. With respect to the Green pillar, the transformation of the economy is based on more renewable energy sources and energy efficiency, as well as phasing out dependency on fossil fuels. In this sense, Cyprus aims to achieve the decarbonisation and mitigation targets for 2030 and or 2050 as set by the targets and objectives of the National Energy and Climate Plan. On a positive note a significant amount of more than €1.5 billion has been included in the programming cycle for the period 2021-2030 with considerable amounts coming from EU funds, supporting Cyprus’ efforts towards green transition. The National Recovery and Resilience Plan (NRRP) is a key tool to repair, restart, and reconfigure Cyprus’ economic and social composition to positively impact the citizens’ well-being, the quality of human capital and the labour force, the efficiency of its institutions and the Country’s effective green and digital transition. The reforms outlined in the NRRP recognise the need for resilience against unprecedented shocks and to deliver a cultural shift addressing the whole spectrum of the economy and society: public administration, private sector as well as all citizens. Digital Transformation The recent experience amidst the COVID 19 pandemic is one that demonstrates that Cyprus has great potential to transform and grow through digital. During the pandemic outbreak, the authorities moved with unprecedented agility and speed, under pressing timeframes, to meet the needs dictated by the “new normal” of lockdowns and social distancing through digitalising services. It is widely accepted that digital transformation will play an important role for the enhancement of competitiveness and the modernisation of the Cyprus economy whereas digitalisation is expected to contribute substantially to economic growth and productivity. Investing in the digital economy and in improving the digital skills of the workforce is essential for bolstering productivity.