Republic of Cyprus Second Voluntary National Report - Sustainable development goals

95 GOVERNMENT INITIATIVES The Cyprus Climate Change initiative • The Cyprus Climate Change Initiative launched in 2019, aims at the development of a Regional Action Plan consisting of appropriate policies and measures to address the specific needs and challenges countries are facing in the Eastern Mediterranean and Middle Eastern region, to address and ameliorate the impact of climate change, and advance mitigation actions in accordance with the Paris Agreement. • A ministerial meeting and a summit are planned for 2022 for the adoption of a comprehensive regional plan. EU Green Deal • A new growth strategy that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient, and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. • Key policy initiatives include supplying clean, affordable, and secure energy, mobilising the industry for a clean and circular economy, and designing a fair, healthy and environmentally friendly food system, preserving and restoring ecosystems and biodiversity. • In November 2020, the Council of Ministers approved the new National Governance System for the EU Green Deal to enhance coordination and facilitate its implementation. • The Ministerial Committee consists of the Minister of Agriculture, Rural Development and Environment, the Minister of Energy, Commerce and Industry, the Minister of Finance, the Minister of Transport, Communications and Works, the Minister of Foreign Affairs and the Deputy Minister of Research, Innovation and Digital Policy. National Energy & Climate Plan (NECP) • NECP (2021-2030) is a key and integral part of the implementation of the European Green Deal in each member state. • In January 2020, Cyprus prepared and submitted to the European Commission its Integrated NECP, in accordance with Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action. Energy Efficiency, Security, and Market • Energy Efficiency: – Energy Fund of Funds providing soft loans for energy efficiency. – Individual energy efficiency interventions and energy efficiency retrofits in public and private buildings. – Implementation of information and education measures. – Promotion of energy efficiency in enterprises, through voluntary agreements. – Energy efficiency in water sector. – Vehicle excise duty based on CO2 emissions. • Energy Security: – Introduction of natural gas via Liquefied Natural Gas (LNG) imports and development of the required infrastructure as part of the “CyprusGas2EU” project. – Promotion of the “EuroAsia Interconnector” and the “EastMed Pipeline” projects. • Energy Market: – Operation of a competitive electricity market via the completion of the Meter Data Management System (MDMS) and the Market Management System (MMS). – In the process of rolling out the Advanced Metering Infrastructure (AMI) with 400,000 smart meters (installation will be completed within 7 years) together with a better control of the distribution system. Renewable Energy Sources (RES) • RES in Electricity Sector (RES-e) market parity has been achieved. Electricity from renewable sources is no more promoted through subsidies; a net metering scheme and self- consumption has been put in place instead. • The isolated nature of the electricity system of Cyprus makes the 50% of RES penetration from RES-e by 2030 difficult to achieve. Different studies are underway to increase the penetration from RES-e. • Renewable energy in heating and cooling (RES H&C) is promoted by support schemes. • RES in Transport (RES-t) will be the most challenging sector. Key measures and planning priorities include new bus contracts (using alternative fuels, electricity, gas, and biofuels B100), and the use of biofuels (and biogas) in the transport sector. • Introduction of support schemes for local biofuels production from waste, modal shift measures through public transport and the introduction of natural gas in the transport sector. • Old vehicle scrapping scheme and financial incentives for the purchase of electric vehicles (both new and used).