Cyprus Initial National Air Pollution Control Programme Version 1.0

National Air Pollution Control Programme, 2019, Cyprus

Courtesy Translation in English Provided by the

Translation Services of the European Commission

Cyprus Initial National Air Pollution Control Programme Version 1.0

Papadopoulos Christos May 2019

Cyprus

Initial Cyprus National Air Pollution Control Programme

Nicosia May 2019

Title of report Initial Cyprus National Air Pollution Control Programme Contact names Dr Chrysanthos Savvides / Christos Papadopoulos Organisation Department of Labour Inspection of the Ministry of Labour, Welfare and Social Insurance Coordination/ Christos Papadopoulos Formatting Contact details Tel. (+357) 22 405683 Fax. (+357) 22663788 [email protected] [email protected]

Date of submission 24 May 2019 Version 1.0

Abbreviations

As Arsenic

BaP Benzo(a)pyrene

Cd Cadmium

CDR Central Data Repository

CNG Compressed Natural Gas

CO2 Carbon dioxide

CUT Cyprus University of Technology

DeNOx Selective Catalytic Reduction (SCR) is the process of NOx reduction

DLI Department of Labour Inspection

DoE Department of Environment

EAC Electricity Authority of Cyprus

EC European Commission

EEA European Environment Agency

EIONET European Environment Information and Observation Network

EMEP Cooperative Programme for Monitoring and Evaluation of the Long-range Transmission of Air Pollutants in Europe

EMS Electromechanical Services

EU European Union

GHG Greenhouse Gas Emissions

Hg Mercury

IED Industrial Emissions Directive

IIASA International Institute for Applied Systems Analysis

IPP Independent power producers

LNG Liquefied Natural Gas LULUCF Regulation- Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU

MARDE Ministry of Agriculture, Rural Development and Environment

MECI Ministry of Energy, Commerce, Industry

MLWSI Ministry of Labour, Welfare and Social Insurance

MoI Ministry of Interior

MTCW Ministry of Transport, Communications and Works

NAPCP National Air Pollution Control Programme

NECD National Emission Ceilings Directive (Directive (EU) 2016/2284)

NERCs National Emissions Reduction Commitments

ΝΗ3 Ammonia

Ni Nickel

NMVOC Non Methane Volatile Organic Compounds

NO2 Nitrogen Dioxide

NOx Nitrogen Oxides

NPF National Political Framework

O3 Ozone

PaMs Policies and Measures

Pb Lead

PM10 Particulate Matter with aerodynamic diameter of 10μm

PM2,5 Particulate Matter with aerodynamic diameter of 2,5μm

R.A.A. Regulatory Administrative Act

RES Renewable Energy Sources

SOx Sulphur Oxides

UNECE United Nations Economic Commission for Europe UNFCC United Nations Framework Convention on Climate Change

WAM With Additional Measures

WM With Existing Measures

Table of Contents

TOC

List of Tables

TOC

List of Figures

TOC

ANNEX

Common format for the national air pollution control programme pursuant to Article 6 of Directive (EU) 2016/2284

1. FIELD DESCRIPTIONS All fields in this common format that are marked (M) are mandatory and those marked (O) are optional.

2. COMMON FORMAT

2.1. Title of the programme, contact information and websites

2.1.1. Title of the programme, contact information and websites (M) Title of the programme Initial Cyprus National Air Pollution Control Programme Date 24/05/2019 Member State CYPRUS Name of competent authority responsible for drawing up the Department of Labour Inspection – Ministry of Labour, Welfare and Social programme Insurance Telephone number of responsible service +357 22405623 Email address of responsible service [email protected] Link to website where the programme is published http://www.mlsi.gov.cy/mlsi/dli. Link(s) to website(s) on the consultation(s) on the programme This report has not been published for public consultation. However, the measures have been discussed publicly by other Governmental Departments/ Services, Semi Governmental Organizations and Local Authorities, in an effort to fulfill their obligations and it was deemed unnecessary to discuss already decided upon measures.

Type of role associated with the elaboration and reporting of the NAPCP Level of operation Name of authority

Elaboration and reporting of the NAPCP National DLI / MLWSI

Air emission legislation at the EU and international level National DLI / MLWSI Policy making roles Air quality legislation at the EU and international level National DLI / MLWSI

Climate change legislation at the EU and international level National DoE Implementation of measures included in the NAPCP National DLI / MLWSI Implementation of air quality plans established under the AQD at Implementation roles National DLI / MLWSI national, regional, and local level Implementation of climate change measures National DoE / MARDE Energy production National MECI Industrial processes National DLI / MLWSI Solvent and product use, fugitive emissions National DLI / MLWSI Enforcement roles (including Agriculture National DoE / MARDE where relevant inspections Waste National DoE / MARDE and permitting) Transport (road / non-road) National MTCW Domestic combustion National DLI / MLWSI Other (to be specified) Preparation and reporting of emission inventory and projections (including any contractors undertaking the work on behalf of the National DLI / MLWSI authority) Preparation and reporting of GHG emission inventory and Reporting and monitoring projections (including any contractors undertaking the work on National DoE / MARDE roles behalf of the authority) Assessment, monitoring and reporting on air quality objectives National DLI / MLWSI

Monitoring and reporting on impacts of air pollution National DLI / MLWSI

Type of role associated with the elaboration and reporting of the NAPCP Level of operation Name of authority Reporting on climate and energy related policy objectives National DoE / MARDE

Coordinating collaboration between air emission control, air Coordinating roles National DLI / DoE quality, climate change and other relevant policy areas Other roles

2.2.2. Progress made since 2005 by current policies and measures in reducing emissions and improving air quality Achieved emission As we can see in Table 1 and the Figure 1, compared to 2005 emissions which is the reference year, there is a reductions significant reduction of the total emissions, especially for SOx and NOx. The NH3 emissions remain approximately at the same level throughout the whole time series. Even though, the 2020 NECD limits are expected to be achieved, further measures which were decided to be taken in order to fulfil obligations of other Directives, like RES target, will lead to bigger reductions of total emissions and as a consequence to better air quality. Table 1: Total Emission Time series (Kt) 2005 2010 2011 2012 2013 2014 2015 2016 2017 SOx 37.9 21.8 20.8 16.2 13.7 16.8 12.9 16.2 16.4 NOx 21.4 18.7 21.4 21.6 16.4 17.1 14.8 14.6 14.5 NMVOC 22.1 19.7 13.8 13.9 12.9 11.7 12.1 12.4 12.3 NH3 7.5 7.3 7 6.7 6.3 6.1 6.2 6.4 6.5 PM2.5 2.2 1.7 1.6 1.3 1.1 1.1 1.1 1.2 1.3

Figure 1: Time series of the main pollutants

Please find also in Table 2 some policies and measures that Cyprus is planning to implement.

Progress against air quality Cyprus has no exceedances as regards the air quality limits. Even though, plans and measures are taken in order to objectives improve air quality. Current transboundary Please find details at the following link: impact of domestic emission sources https://emep.int/publ/reports/2018/EMEP_Status_Report_1_2018.pdf

Sector Policy and Measures Energy ● Increase the penetration of RES ● Incentives to take measures for energy saving both for households and Industry.

Transportation ● Taxation reform ● Promotion of electric cars ● Promotion of RES for transportation ● Measures to reduce the use of private cars and increase the use of the public transportation. ● Improve the infrastructure

Industry ● Incentives to take measures for energy saving.

Agriculture ● Further implementation, where appropriate, the Code for Good Agricultural Practice for Reducing Ammonia Emissions ● Further promotion of anaerobic digestion for the manure treatment.

Waste ● Sorting at source – reduction of the total amounts. ● Recycling ● Promotion of anaerobic digestion for the treatment of the solid municipal wastes. ● Recovery of biogas from landfills that are not in use.

Table 2: Policy and Measures

2.2.3. CYPRUS National Emissions Reduction Commitments (NERCs)

Based on the provisions of the NECD, the emissions reduction commitments are based on the emissions of 2005 which is considered the reference year. Please find in the Table 3 below, the emissions of 2005, the reduction commitments for 2020 up to 2029 and for 2030 and after, as well the percentage of reductions, based on 2005, of the years 2010 and 2017 (last year of emissions submission to EC).

2020 2030 2005 2010 2017 NEC NEC

SOx 37.9 42% 57% 83% 93%

NOx 21.4 13% 32% 44% 55% NMVOC 22.1 11% 44% 45% 50%

NH3 7.5 3% 13% 10% 20%

PM2.5 2.2 23% 41% 46% 70% Table 3: Cyprus NERCs

Based on the values of 2017, it seems that the emission reduction commitments of 2020 will be achieved only for the pollutants NMVOC, NH3 and PM2.5. Cyprus will have to take measures to achieve the reduction targets for SOx and NOx.

90% of the SOx emissions are coming from Public Electricity Power Stations. Government is planning to import natural gas for use as a fuel in the Power Stations in 2023. Until then, EAC, in order to comply with the IED provisions, is obliged to install desulphurization units.

The main factors that affects the emissions from Energy Sector are a) the energy demand, b) the type of fuel used for the electricity production and c) the penetration of the RES in the electricity market.

As regards the total electricity demand and the type of fuel that will be used, please find data in Table 4. The estimations were made by the CUT in October 2018.

Table 4: Contribution of Various Fuels on Total Electricity Demand 2017 2020 2025 2030

Oil (fossil) 4200 4735 1037 1180 Natural Gas 0 0 4211 4343 Coal 0 0 0 0 Renewable sources 359 526 926 1381 Total Electricity Demand (GWh) 4559 5261 6174 6904

It is noted that the use of Natural Gas in the electricity production is estimated to be done in 2023. In order to achieve the emissions reductions targets, especially for the SOx emissions, the following measures will be taken by EAC:

1) Desulfurization units will be installed in Steam Turbine 1, 2 and 3 of the Vasilikos Power Plant.

2) The use of HFO in Dekelia Power Plant will completely stop in 2023. Before 2023, based on the derogations of the IED Directive, they could operate these units for a certain amount of hours per year.

3) After 2023, only Natural Gas and Diesel fuels will be used in the Power Plants. The Diesel will be used for the ICE units. The use of the ICE units is needed in order to increase the stability of the electricity supply.

As a consequence of the above, the NERCs for SOx of the 2020 will be achieved. For the achievement of NERCs for SOx of the 2030, natural gas should be available for the Power Stations.

As regards the NOx emissions the main contributors are the Transportation and the Power Stations. Power Stations are planning to install DeNOx units at all units. Government is promoting the use of electric cars. There are currently 18 double charging stations in Cyprus: 6 charging stations in Nicosia, 5 in Limassol, 2 in Larnaca, 2 in Ammochostos and 3 in Paphos. Additionally, the Department of Electromechanical Services is proceeding to the installation of 10 high charging stations in high ways and public roads. Although the numbers are still very small, the expectation is that the registration of electric cars will increase considerably over the next five years. It is also decided that buildings with more than 10 parking places shall install one congestion charger. Government is also promoting the increase of the use of Biofuels. Currently the use of Biofuels is 2.5 % and is expected that until 2020 it will go up to 10% which is the target value according to EU Directives, 2009/28/EC and 2009/30/EC. Within the framework of the Directive 2014/94/EU on the Deployment of Alternative Fuels Infrastructure, which sets practical

7 goals, the development of the market and related infrastructure for the use of electricity, liquefied natural gas (LNG), compressed natural gas (CNG) and hydrogen in transport is specifically promoted. Directive 2014/94/EU is a tool to meet the mandatory 2020 target for road transport, i.e. (a) 10% energy from RES in transport (Directive 2009/28/EC) and b) 6 % reduction in greenhouse gas emission intensity in the life cycle of road transport fuels (Directive 2009/30/EC). The competent authority for the achievement of those targets is the Ministry of Energy, Trade, Industry and Tourism. A National Policy Framework describing national targets and guidelines, support actions and policies for the development of alternative fuels and the necessary infrastructures was prepared by the Ministry of Transport, Communications and Works in cooperation with the Ministry of Energy, Commerce and Industry.

Furthermore, measures to increase the use of a bicycle, to increase the use of public transportation, integrated fleet management system in governmental fleet, training and information on eco-driving were adopted.

With all these measures it is expected that the NOx NERCs for 2020 will be achieved.

NH3 emissions reduction targets are estimated to be achieved for 2020, but for 2030 extra measures should be taken. The implementation suitable for Cyprus provisions of the UNECE Framework Code for Good Agriculture Practice for Reducing Ammonia Emissions will help to achieve the target reduction limits of 2030. Please also note that even if the farmers are taking some of the proposed measures, these abatement technologies are not taken into account for the calculation of the total NH3 emissions. These measures will be taken into account as soon as more data is available on such technologies.

2.2.4. Projected further evolution to 2030 assuming no change to already adopted policies and measures (PaMs) Projected emissions and emission reductions (With Historical Data Projections Obligations Reductions Obligations expressed Measures (WM) scenario) as a % as (Gg)

2005Baseyear 2017 2020 2025 2030 2020NERCs 2030NERCs 2020NERCs 2030NERCs

NOx 21.4 14.5 11.8 8.5 7.8 44% 55% 12.0 9.6 NMVOC 22.1 13.3 11.9 11.5 11.0 45% 50% 12.2 11.1

SOx 37.9 16.4 3.5 1.3 1.3 83% 93% 6.4 2.7

NH3 7.5 6.5 4.8 4.9 4.6 10% 20% 6.8 6.0

PM2.5 2.2 1.3 0.9 0.8 0.7 46% 70% 1.2 0.7

Projected impact on Based on the 2017’s data submitted to EU according to the provisions of the Air Quality Directive (2008/50/EE), on the improving air quality basis of the existing monitoring network, Cyprus does not show any exceedances. (WM scenario) However, Cyprus has exceedances of the O3 long term target value which is considered that is a trans boundary problem. Even though, Cyprus will give extra efforts to reduce the emissions of the ozone precursor substances.

Also, Cyprus has problems with the PM10. Although, after the subtraction of the portion of PM10 that is due to natural sources, there are no exceedances; efforts will be given in order to minimize the anthropogenic portion of PM10 emissions. The main source is the urban transportation, industry (cement and lime factories) and energy production. Relevant plans have been adopted to reduce the emissions of PM10. Despite of the above, the reduction of the total emissions it is anticipated to improve the air quality in Cyprus. Uncertainties Not calculated

2.2.5. Summary of policies and measures selected for adoption by sector, including a timetable for their adoption, implementation and review and the competent authorities responsible Policies and Measures (PaMs) Timetable for Timetable for Responsible competent authorit(y)(ies) for Sector affected implementation review of the Selected PaMs implementation and enforcement of the selected of the selected selected PaMs (type and name) PaMs PaMs Energy supply Use of Natural Gas 2023 MECI and EAC 2024

Installation of 2020 EAC 2021 Desulphurization units Reduced working hours of 2020 EAC and DLI 2021 the Steam Turbines at Dhekelia Power Plant which are using HFO Renewable Energy 2020 MECI and EAC 2025 Sources in Electricity Production Renewable Energy MECI and MoI Sources for Heating and Cooling Renewable Energy MECI, EMS and MTCW Sources in Transport Energy consumption Savings from Energy MECI and MoI Efficiency in Residential Buildings Savings from Energy MECI and MoI

Promotion of new MECI and MTCW technologies cars The National Political Framework (NPF) for the development of the renewable fuels’ market in the transport sector was agreed by the Council of Ministers in 25.5.2017 1 and includes the implementation of the relevant infrastructure such as the charging points of the electric vehicles and the refueling points of Natural Gas (LNG and CNG) and Hydrogen.

Industrial processes Reduce energy 2004 MECI 2025 consumption by promotion of energy efficiency measures in the industrial sector

1 http://www.cm.gov.cy/cm/cm_2013/cm.nsf/1EE74A42D47F2E58C225816E0022BE14/$file/82.663.pdf

Policies and Measures (PaMs) Timetable for Timetable for Responsible competent authorit(y)(ies) for Sector affected implementation review of the Selected PaMs implementation and enforcement of the selected of the selected selected PaMs (type and name) PaMs PaMs Further promotion of anaerobic digestion for the Agriculture treatment and 2020 MARDE 2025 management of animal waste Further Implementation of the UNECE Framework Code for Good 2020 MARDE 2025 Agriculture for Reducing Ammonia Emissions Reduction of emissions Waste from controlled waste 2020 MoI & MARDE 2023 management/waste management sites from biogas recovery

Reduction of emissions from wastewater treatment 2020 MARDE 2025 from the promotion of Anaerobic Digestion

Reduction of organics to landfill - Separate 2020 MARDE and MoI 2025 organics collection Cross-cutting

2.3. The national air quality and pollution policy framework

2.3.1. Policy priorities and their relationship to priorities set in other relevant policy areas The pollutant-specific quantitative reduction commitments are as defined in Table 5. The ceilings are presented as a proportional reduction in emissions relative to the inventory reported national emissions of the pollutant in 2005, which is considered the reference year. These ceilings are in force for the period from 2020 up to 2029 and then from 2030 onwards where there is an increase of ambition for emission reductions across all pollutants.

Table 5: NECD Reduction commitments for Cyprus

The national emission reduction commitments compared with 2005 SOx NOx NMVOC NH3 PM2,5 base year (in %) (M)

2020-2029 (M) 83% 44% 45% 10% 46%

From 2030 (M) 93% 55% 50% 20% 70%

The air quality priorities: national Air pollution is one of the largest environmental challenges today. At EU level air pollution is estimated to policy priorities related to EU or cause approximately 400,000 premature deaths a year (EEA Air Quality Publication, 2018a), while the national air quality objectives corresponding figure for Cyprus is assessed at 750 premature deaths a year due to PM2.5, 30 due to NO2 and (incl. limit values and target 40 due to O3 (EEA Air Quality Publication, 2018a). values, and exposure Efforts for clean air in Cyprus have been a success, showing declining trends for emissions of atmospheric concentration obligations) (M) pollutants. To a very large extent these positive results are caused by international regulation (LRTAP Convention & EMEP Protocols and EU Directives). Cyprus today complies with all EU pollutant limit Reference can also be made to values for air quality and national emission ceilings limit values. The only exception is the long-term target recommended air quality value of O for the protection of human health, where exceedances are more than 25 per year, as well as the objectives by the WHO. 3 AOT 40. The relevant O3 exceedances of the target value are mostly due to the climatic conditions prevalent in Cyprus, where high ambient temperatures and high solar radiation contribute to the production of O3 as well as due to the transboundary pollution of the O3 and O3 precursors transportation from the East

Mediterranean and other neighboring countries. Additionally, Cyprus has problems with PM10 concentrations. However, there are no exceedances after the subtraction of the PM10 portion from natural sources, while efforts will be made in order to minimize the anthropogenic portion of PM10 emissions.

Cyprus recognizes the significance of clean air for the health and well-being of its citizens and its environment and is aware of its international obligations in this area. As the population and economy grow, and as sectors develop, there are both challenges and opportunities to be recognized in regard to managing future air quality. In this regard, Cyprus is fully committed to developing and deploying further measures and initiatives to enhance and protect air quality in parallel with broader national policy priorities of relevance. As a starting point, the NECD ceilings support this overarching national ambition by requiring reductions in absolute emission levels across every sector in Cyprus over time. These improvements, in conjunction with additional measures and local initiatives will also support ongoing successes in managing levels of ambient air quality in line with the AAQD.

The regulatory framework for the reduction of air pollution in Cyprus is presented below:

International commitments for air pollution reduction

The political framework for the international cooperation on air pollution reduction is threefold: The Air Quality Directives, the NEC Directive, and the Convention on Long-Range Transboundary Air Pollution (LRTAP Convention). Here, specific targets are set out for concentrations of harmful substances in the air and the emission of atmospheric pollutants, respectively. This overall regulation is supported by national and international legislation dealing with the source-specific mitigation of air pollution. This may be, for instance, emission limit values for certain substances from specific types of enterprises or facilities.

1) NEC Directive As mentioned above, Cyprus is committed through the NEC Directive to reduce emissions of the atmospheric pollutants of NOx, SOx, NH3, NMVOC, and PM2.5. This commitment is set out as an emission reduction target compared with the emissions of reference year 2005. Cyprus’ commitments appear in Table 5 for the period from 2020 to 2030 and the period after 2030.

2) LRTAP Convention Cyprus is a party to the LRTAP Convention which convention is intended to limit air pollution in a large area consisting of the EU, Eastern Europe, the Caucasus, Central Asia, USA, and Canada. The Convention has eight protocols setting requirements for emission inventory and reduction of a large number of substances, including heavy metals and tar compounds. The most recently updated protocol is the Gothenburg Protocol containing emission reduction commitments for those same substances that are covered by the NEC Directive for the years after 2020. The NEC Directive is the EU implementation of the Gothenburg Protocol, but goes one step further and it also has a reduction emissions target for 2030 which are stricter targets.

3) Air Quality Directives The Air Quality Directives set out targets and limit values for the atmospheric concentration of certain substances along with a requirement for monitoring of air pollution. The purpose of the Air Quality Directives is to ensure that the air that we breathe is so clean that it does not constitute a health problem. Therefore, measuring stations have been established around Cyprus, measuring air pollution in a continuously basis. These measurements are published every hour in a specific website in order to inform the citizens of the air quality. The Air Quality Directives set out limit values for PM10, PM2.5, SOx, CO, O3, NOx and NO2 among others. The rules on air quality have been implemented by the Cyprus Legislation under the Air Quality Laws (Law 77(I)/2010 and Law 3(I)/2017) and the relevant R.A.A. 111/2007 and R.A.A. 327/2010 and Monitoring is conducted by DLI under the Ministry Labour, Welfare and Social Insurance of Cyprus.

4) Source-specific regulation The Air Quality Directives, the NEC Directive, and the LRTAP Convention are supported by extensive source-specific legislation contributing to compliance with the emission limit values set out in the directives and the Convention. These are, for instance, regulation of wood burning stoves, vehicles, ships, and IED for industrial enterprises. This regulation covers both EU and national rules.

Relevant climate change and The commitments in the air quality field interplay closely with climate objectives and regulation. Please energy policy priorities (M) find in Appendix II, the Cyprus commitments and efforts in the field of climate and energy are presented (DoE, 2019).

Relevant policy priorities in The Government policy priorities and relevant policy areas including agriculture, industry and transport are relevant policy areas, incl. shown below. agriculture, industry and transport (M)

2.3.2. Responsibilities attributed to national, regional and local authorities List the relevant Describe the type of Describe the attributed responsibilities in the Source sector under the responsibility of the authorities(M) authority (e.g. areas of air quality and air pollution (M) authority environmental Select from the following as appropriate: inspectorate, regional — Policy making roles environment agency, — Implementation roles municipality) (M) — Enforcement roles (including where Where appropriate, name of relevant inspections and permitting) authority (e.g. Ministry of — Reporting and monitoring roles XXX, National Agency for — Coordinating roles XXX, Regional office for — Other roles, please specify: XXX) National authorities Department of Labour ● Policy making role ● Air Quality Directives (M) Inspection of MLWSI ● Implementation role ● NECD Directive ● Reporting and monitoring ● IED Directive ● Enforcement roles (including where relevant inspections and permitting) Environment Department of ● Policy making role ● Environment MARDE ● Implementation role ● Climate Action ● Reporting and monitoring ● UNFCC ● Enforcement roles (including where ● RES relevant inspections and permitting ● Coordinating roles Energy Service of MECI ● Policy making role ● Energy policies ● Implementation role ● RES ● Reporting and monitoring ● Enforcement roles (including where relevant inspections and permitting ● Coordinating roles Department of Road ● Policy making role ● Transport Transport of MTCW ● Implementation role ● Public Transport Policies ● Enforcement roles (including where

relevant inspections and permitting ● Coordinating roles Department of Finance ● Policy making role Regional N/A authorities (M)

Local authorities Local Cyprus Authorities ● Enforcement roles (supervision) ● Built Environment (M)

2.4. Progress made by current policies and measures (PaMs) in reducing emissions and improving air quality, and the degree of compliance with national and Union obligations, compared to 2005

2.4.1. Progress made by current PaMs in reducing emissions, and the degree of compliance with national and Union emission reduction obligations Describe progress made by Air pollution is a global threat leading to large impacts on health and ecosystems worldwide. Emissions and current PaMs in reducing concentrations have increased in many areas of the globe, affecting also Europe, where the air quality remains emissions, and the degree of poor in many areas, despite reductions in emissions and ambient concentrations. compliance with national and Union emission reduction Air pollution is the second biggest environmental concern for Europeans after climate change and citizens expect authorities to implement effective actions in order to reduce air pollution and its effects. legislation (M) In this section we detail the progress made by current policies and measures (PaMs) in reducing national annual emissions of air pollutants and the improvement of ambient air quality. Progress in relation to the NECD ceilings are dealt with in Section 1 and ambient air quality is discussed in Section 2. In these sections we also broadly identify the major PaMs introduced in Cyprus to drive progress on reducing emissions across the NECD pollutants

Section 1: Progress in relation to NECD obligations Air quality plans and measures to reduce air pollutant emissions and improve air quality have been implemented throughout Europe and form a core element in air quality management. The European Air Quality

Directives (Directives 2004/107/EC, 2008/50/EU and their amendments) set the obligation of developing and implementing air quality plans for zones and agglomerations within which concentrations of pollutants exceed the EU standards and to maintain the quality there where it is good.

Even though Cyprus does not have any exceedances of the air quality limits, an Action Plan was prepared to improve the air quality. This plan is updated every year through a relevant Technical Committee. In this Committee, all relevant Ministries, the Technical Chamber of Cyprus, Local Authorities and the Organization of the Environmentalists participate. The latest Action Plan (in Greek) may be found in the link: http://www.airquality.dli.mlsi.gov.cy/reports

Total emissions of air pollutants The datasets relating to annual emissions of NECD pollutants are derived directly from official inventory and were released in 2019 by DLI which has the responsibility for Reporting and Monitoring of the Air Quality for Cyprus. Commentary is further informed by the latest Informative Inventory Report (IIR) which offers the most comprehensive detail in regard to how and why historical emissions have changed over time. The relevant datasets and reports can be sourced at the following links.

● Cyprus emission inventory for 2017 v2.0 (2019) ● Cyprus’s informative inventory report for 2017 (2019) ● Cyprus’s projected emissions based on 2017 emissions (2019 release)

Generally, emissions of all primary and precursor pollutants contributing to ambient air concentrations of PM, O3 and NO2, as well as As, Cd, Ni, Pb, Hg and BaP, decreased between the years 1990 and 2017 in Cyprus (Figure 1), except for NH3 emissions which remain almost stable.

Figure 2: Time series of main pollutants emissions More details:

NOx Trends The Cyprus NOx emissions (NO and NO2) decreased by 1.89 Gg in the 1990 – 2017 period, corresponding to

12% of the national total in 1990 and decreased by 6.76 Gg in the 2005 – 2017 period, corresponding to 32% of the national total in 2005 (Figure 3 & Figure 4). The main contributors to the National total NOx emissions are the F_Road transport, the A_Public Power and the B - Industry sectors. The emissions due to the Industry Sector remains almost constant throughout the years. Regarding the emissions from the F_Road transport sector, the emissions per vehicle decreased significantly during this period (1990 – 2017) due to the implementation of new car technologies and the usage of better quality fuels, but were, somehow, counterbalanced by an increase in the number of vehicles and mileage per year per vehicle. As regards to the A_Public Power sector, the NOx emissions were increased by 2.98 Gg for the period between 2010 – 2012, corresponding to 16,0% of the national total. This was due to the installation and operation of a number of temporary-mobile units (Internal Combustion Engines) in the island. The installation was a result of the reduction in generating capacity of the Electricity Authority of Cyprus (EAC) due to the extensive damage of the Vassilikos PS caused by an explosion on July 11th, 2011. More details were given in the Cyprus Informative Inventory Report published for year 2013 in the EIONET Central Data Repository (CDR) (http://cdr,eionet,europa,eu/cy/un/UNECE_CLRTAP_CY/envvqgjug/).

The big decrease in 2013, regarding NOx emissions, was due to the complete restoration of the Vassilikos PS. This plant uses a newer technology for combustion, with lower NOx emissions compared to the temporary installed ICE plants and as a consequence the NOx emissions from the energy sector was significally decreased, a small increase was observed in 2014 due to the increased energy demand as a consequence of the relevant Cyprus economy recovery. A small decrease was observed in 2015 and 2016 due to a lower use of ICE temporary plants in Dhekelia PS and the implementation of a DeNOx system for the ICE1 plant. A DeNOx system was implemented for ICE2 plant at the beginning of its operation.

Another reason for the overall decrease of the NOx emissions that occurred in recent years was the increase of the penetration of the Renewable Energy Sources. In 2010 the electricity produced from RES was 61 GWh compared to 359 GWh produced in 2017. This is an increase of 488%.

Figure 3: Sector attribution of NOx emissions for the period 1990 – 2017

Figure 4: National total NOx emissions for the period 1990 – 2017

NMVOC Trends

The Cyprus NMVOC emissions decreased by 4.73 Gg in the 1990 – 2017 period, corresponding to 25% of the national total in 1990 and decreased by 9.08 Gg in the 2005 – 2017 period, corresponding to 40% of the national total in 2005 (Figure 5 & Figure 6). The main contributors to this decrease were the F - Road Transport sector, which from 6.92 Gg in 1990 went to 2.43 Gg in 2017 and the E - Solvents sector from 13.79 Gg in 2005 went to 8.12 Gg in 2017. The latter was due to the full implementation of relevant the EU Directive 2004/42/EC.

Figure 5: Sector attribution of NMVOC emissions for the period 1990 – 2017.

Figure 6: National total NMVOC emissions for the period 1990 – 2017. E _ Solvents and F_ Road Transport are the main contributors for NMVOC. It is expected that if Cyprus find more data regarding E_ Solvents and use Tier2 instead of Tier 1 method, a significant decrease will be achieved. Further reductions will be achieved when all petrol stations will implement stage 2.

SOx Trends

The Cyprus SOx emissions (reported as SOx) decreased by 15.48 Gg in the 1990 – 2017 period, corresponding to 48% of the national total in 1990 and decreased by 21.62 Gg in the 2005 – 2017 period, corresponding to 57% of the national total in 2005 (Figure 7). The main contributions to this decrease came from the A_Public Power, B_Industry, C_Other Stationary Combustion and F_Road Transport sectors. The Sulphur content in fuels consumed by those sectors was reduced. This is mainly due to the transposition and enforcement of the

26 relevant EU Directives. Currently, the energy sector is responsible for almost 89% of the national SOx emissions. During the years 2010 to 2014 it was observed an increase in SOx emissions due to the fact that the Flue - Gas Desulphurization Unit (FGD) installed in the Steam Turbine Unit 3 of the Vassilikos PS was not in operation. The decrease observed in the SOx emissions in 2012 was due to the fact that the temporary ICE engines installed were using diesel with low Sulfur content. These temporary ICE engines were installed in order to anticipate the reduction in generating capacity of Electricity Authority of Cyprus (EAC) due to the extensive damage of Vassilikos PS caused by an explosion on July 11th, 2011. In 2013 the SOx emissions were decreased even more due to the fact that the Vassilikos PS were completely restored. A small increase was observed in 2014 due to the increased energy demand as a consequence of the relevant Cyprus economy recovery. The decrease observed in the SOx emissions in 2015 was due to the fact that the Flue-Gas Desulphurization Unit (FGD) installed in the Steam Turbine Unit 3 of the Vassilikos PS was again in full operation. An increase observed in 2016 and 2017 for SOx emissions compared to those of 2015 in the A_PublicPower Sector was due to the fact that the average Sulphur (S) content fuel used by the Power Plants was increased.

Figure 7: Sector attribution of SOx emissions for the period 1990 – 2017.

Figure 8: National total SOx emissions for the period 1990 – 2017.

NH3 Trends

The Cyprus NH3 emissions decreased by 0.33 Gg in the 1990 – 2017 period, corresponding to 7% of the national total in 1990 and decreased by 1.08 Gg in the 2005 – 2017 period, corresponding to 13% of the national total in 2005 (Figure 10). This decrease occurred in the agricultural sources, mainly due to measures taken to reduce NH3 emissions during the application of manure to the soil and the reduction of Nitrogen contained in the modern fertilizers (1.92 Gg 1990 to 1.35 Gg 2017 in L_AgriOther sector). Approximately 97% of ammonia emissions (2017) come from agricultural sources (K_AgriLivestockc sector and L_AgriOther

29 sector). A small increase observed between the years of 2013 and 2017 was due to the increased numbers of animals (cows and fattening pigs).

Figure 9: Sector attribution of NH3 emissions for the period 1990 – 2017.

Figure 10: National total NH3 emissions for the period 1990 – 2017.

PM2.5 Trends

The Cyprus particulate matter emissions are presented in Figure 11. The PM2.5 emissions decreased by 1.43 Gg in the 2000 – 2017 period, corresponding to 52% of the national total in 2000 and decreased by 0.97 Gg in the 2005 – 2017 period, corresponding to 42% of the national total in 2005. The main contributors to this decrease are the A_Public Power, the F_Road Transport and the B_Industry.

Figure 11: Sector attribution of PM2.5 emissions for the period 2000-2017.

Figure 12: PM2.5 emissions trend 2000-2017. Provide complete references Please find the required information on the following links: (chapter and page) to publically available supporting datasets ● Cyprus emission inventory for 2017 v2.0 (2019) (e.g. historic emission inventory reporting) (M) ● Cyprus’s informative inventory report for 2017 (2019) ● Cyprus’s projected emissions based on 2017 emissions (2019 release)

Include graphics illustrating NOx Distribution per main sector for 2017 the emission reductions per pollutant and/or per main sectors (O)

Figure 13: Sector attribution of NOx emissions in 2017. As it is shown in the above figure the Transportation and the Public power are the main sectors for NOx emissions.

NMVOC Distribution per main sector for 2017

Figure 14: Sector attribution of NMVOC emissions in 2017. Solvents and Road Transportation are the main contributors for NMVOC emissions.

SOx Distribution per main sector for 2017

Figure 15: Sector attribution of SOx emissions in 2017.

Public Power is by far the main contributor for SOx emissions.]

NH3 Distribution per main sector for 2017

Figure 16: Sector attribution of NH3 emissions in 2017.

Livestock and agriculture are the main contributors for NH3 emissions. The further promotion of the anaerobic digestion of the manure in the farms will contribute to reduce the NH3 emissions and not only.

PM2.5 Distribution per main sector for 2017

Figure 17: Sector attribution of PM2.5 emissions in 2017.

Road Transport, Industry (mainly the cement and lime factories) and Public Power are the main contributors

2.4.2. Progress made by current PaMs in improving air quality, and the degree of compliance with national and Union air quality obligations Describe progress made by The DLI is the competent authority for assessing Cyprus ambient air quality. The assessment of the air quality is current PaMs in improving air achieved through the implementation of two laws – Law 77(I)/2010 and Law 3(I)/2017 and the relevant R.A.A quality, and the degree of 111/2007 and R.A.A. 327/2010. The implementation of the law and regulations provisions is assessed through a compliance with national and national network of air monitoring stations, as of 2017 there are 9 stations across Cyprus. A range of pollutants are Union air quality obligations annually assessed and reported both nationally through the DLI’s annually report and internationally through the by, as a minimum, specifying European Environment Agency (CDR EIONET portal). the number of air quality zones, out of the total air In 2017, no exceedances of the EU legislative limits were observed. Even though, extra efforts will be given in quality zones, that are order to improve air quality. Basically, the pollutants in concern are: (non)compliant with EU air  PM10 and PM2.5 levels mainly linked to transport emissions from diesel engines as well as from tyre quality objectives for NO2, PM10, PM2,5 and O3, and any and brake abrasion and natural sources (sea salt and dust transported of Sahara Desert, and other other pollutant(s) for which there are exceedances (M) North Africa and West Asian areas).

 NO2 levels in urban centres associated with traffic emissions.

 O3 levels at a regional scale in part due to the impacts of transboundary ozone.

The major threats to good air quality in Cyprus are observed from transport emissions in urban centres and long term O3 which mostly is transboundary. The EEA have estimated that approximately 820 (750 PM2.5 +30 NO2 + 40 O3) premature deaths in Cyprus can be attributed to air pollution in 2017. The DLI has an Ambient Air Quality network with 9 mobile measuring stations which cover all Cyprus.

Figure 18 - Figure 26 AOT40 (O3), PM10, PM2.5, NO2, and NOx. are based on measurements of the above mentioned monitoring stations.

Figure 18: EU AOT 40 (ppb.h) in 2017 As seen in Figure 18 AOT40 values are highest than the European long-term AOT40 objective level of 6000 μg/m3 *·h in 2017.

3 Figure 19: O3 number of days of exceedance of the long term target value (120μg/m )

Figure 20: Annual mean PM10 concentrations Please note that the above values are the initial measurements without subtracting the mass portion which is due to sea salt and dust from nearby dry areas (i.e. Sahara). The values after the subtraction are below the annual limit,

42 even though, we can see also a trend of lower values for both stations.

Figure 21: Annual mean PM2.5 concentrations

Figure 21 demonstrating the yearly average values of PM2.5 for EMEP station (background station) and of 4 suburban areas in four cities in Cyprus. It seems that for the last two years the AEI is below the limit value of the

2020. Please note that we are using the initial values even though that some values are extremely high due to Sahara events.

Figure 22: Annual mean NO2 concentrations time series , Figure 22 shows the concentrations of NO2 where the highest concentrations are found in urban areas (traffic

stations). The above figure shows values from one traffic station, one suburban (residential) station and one 3 background station. The NO2 yearly average values are below the annual limit value of 40 μg/m . We could also see that there is a small decrease trend of the annual mean.

Provide complete references For Air Quality Plans could be found in the following link: (chapter and page) to publically available http://www.airquality.dli.mlsi.gov.cy/reports supporting datasets (e.g. air The report is in Greek language. quality plans, source For Source apportionment you could find the relevant reports at CDR EIONET Portal. For year 2016 and 2017 apportionment) (M) please find the report in the following links: https://cdr.eionet.europa.eu/cy/eu/aqd/i/envwiph6g/ -2016 https://cdr.eionet.europa.eu/cy/eu/aqd/g/envw63ovw/ --2017 The reports are in Greek language. Maps or histograms Cyprus has only one zone. There are no exceedances of the limit values as regards the air pollutants that are illustrating the current ambient provided in Air Quality Directive (2008/50/EC). air concentrations (for at least Please find below time series of the main air pollutants: NO2, PM10, PM2,5 and O3, and any other pollutant(s) that present(s) a problem) and which show, for instance, the number of zones, out of the total air quality zones, that are (non)compliant in the base year and in the reporting year (O)

Figure 23: Yearly averages of the main air pollutants at the Nicosia Traffic Station for the years 2000-2018.

3 It is obvious that SOx values, especially after 2004, are very low compare to the hourly limit (350μg/m ) or even the 3 3 day limit which is 125μg/m . NO2 is a bit lower than the annual limit (40 μg/m ). We could also see a reduction of the yearly averages of NOx and NO2. For O3 the situation is different. It is almost stable especially in EMEP station (a background station). The fluctuation of its values depends of the season. Summer higher values and winder lower. This lead us to the conclusion that the relevant exceedances of the long term target value are mostly due to

46 the climatic conditions prevalent in Cyprus, where high ambient temperatures and high solar radiation contribute to the production of O3 as well as due to the transboundary pollution of the O3 and O3 precursor’s transportation from the East Mediterranean and other neighboring countries. This leads us to the conclusion that it is a transboundary pollutant.

Figure 24: Yearly averages of the main air pollutants at the EMEP Background Station for the years 2003-2018.

3 As a background station all pollutants have very low values except O3. O3 yearly values are about 100μg/m .

Figure 25: Yearly averages of gravimetric PM10 and PM2.5 measurements at the Nicosia Traffic Station for the years 2007-2017.

Figure 26: Yearly averages of gravimetric PM10 and PM2.5 measurements at the EMEP Background Station for the years 2007-2017.

Please note that for both stations the values of PM10 are before the subtraction of the portion of PM10 that is due to natural sources (sea salt and Sahara dust).

Where problems are identified Not applicable. in (an) air quality zone(s), describe how progress was made in reducing the maximum concentrations reported (O)

2.4.3. Current transboundary impact of national emission sources

Where relevant, describe the current Air pollution is transboundary and a large part of the air pollution in Cyprus, especially O3, transboundary impact of domestic emission comes from abroad, just as air pollution from Cyprus sources is transported to our sources (M) neighbouring countries and ambient waters. Progress can be reported in quantitative or Cyprus does not have a model to estimate the transboundary impact of domestic qualitative terms. sources. So for data regarding transboundary impact, please refer to the following link: If no issues were identified, then state that conclusion. Source: https://emep.int/publ/reports/2018/EMEP_Status_Report_1_2018.pdf

As it appears from the report, the primary receptors for Cyprus are Turkey, North Africa and the Mediterranean Sea and the primary emitters for Cyprus are Turkey, Mediterranean Sea and Remaining Asian Areas.

2.5. Projected further evolution assuming no change to already adopted policies and measures 2.5.1. Projected emissions and emission reductions (WM scenario) Pollutants Total emissions (kt), consistent with Projected % emission National emission National emission (M) inventories for year x-2 or x-3 (year to be reduction achieved reduction reduction specified) (M) compared with 2005 (M) commitment for 2020- commitment from 2029 (%) (M) 2030 (%) (M) 2005 base 2020 2025 2030 2020 2025 2030 year

SOx 37.9 3.524 1.334 1.331 91% 96% 96% 83 93 NOx 21.4 11.805 8.511 7.818 45% 60% 63% 44 55 NMVOC 22.1 11.936 11.455 11.016 46% 48% 50% 45 50 NH3 7.5 4.819 4.886 4.641 36% 35% 38% 10 20 PM2,5 2.2 0.914 0.805 0.664 58% 63% 70% 46 70 Outline the associated uncertainties for the WM projections Emission projections depend on official activity level projections which include the to meet the emission reduction commitments for 2020, 2025 uncertainties in activity data and emission factors. and 2030 onwards (O) Out of the projected substances the largest uncertainty is related to SOx emissions since, due to political reasons – problems with Turkey, it is not sure when natural gas will come in Cyprus and to be used in electric power stations as a fuel. Other big uncertainties are also found for the future emission factors for road transport, since historical data have shown that emission factors in the real world do not always live up to the expectations produced by statutory limit values, cf. the diesel scandal. For Cyprus projections, as regards transport, we used the projections that were made from IIASA during NEC negotiations. It is very uncertain that the fleet composition will change until 2020 as IIASA projected.

Date of emission projections (M) 15.3.2019

Link: https://cdr.eionet.europa.eu/cy/eu/nec_revised/projected/envxiumpa/ Where the projected evolution demonstrates non-attainment of the emission reduction commitments under the WM scenario, section 2.6 shall outline the additional PaMs considered in order to achieve compliance.

2.5.2. Projected impact on improving air quality (WM scenario), including the projected degree of compliance

2.5.2.1. Qualitative description of projected improvement in air quality (M) Provide a qualitative description of the projected improvements As of 2017, on the basis of the existing monitoring network, Cyprus does not in air quality and projected further evolution of degree of show any exceedances with regard to EU legislation for ambient air quality. compliance (WM scenario) with EU air quality objectives for The main sources for the ambient air pollution are urban transport, Public NO2, PM10, PM2,5 and O3 values, and any other pollutant(s) that present(s) a problem by 2020, 2025 and 2030 (M) energy production. Measures to increase the use of electric vehicles and have less petrol and diesel cars on the road, as well as measures to reduce the Provide complete references (chapter and page) to publically emissions from the Public Energy Sector will be applied. available supporting datasets (e.g. air quality plans, source apportionment) describing the projected improvements and Air quality plans link: further evolution of degree of compliance (M) http://www.airquality.dli.mlsi.gov.cy/reports (in Greek)

Source apportionment report for PM10 link:

https://cdr.eionet.europa.eu/cy/eu/aqd/g/envw63ovw/REPORT2018-Analysis- Results-2017.docx/manage_document (for 2017 measurements)

2.5.2.2. Quantitative description of projected improvement of air quality (O) AAQD Projected number of non-compliant air Projected number of compliant air Total number of air quality zones values quality zones quality zones Specify base 2020 2025 2030 Specify base 2020 2025 2030 Specify base 2020 2025 2030 year year year

PM2,5 (1 yr) 2018 0 0 0 2018 1 1 1 2018 1 1 1 NO2 (1 yr) 2018 0 0 0 2018 1 1 1 2018 1 1 1 PM10 (1 yr) 2018 0 0 0 2018 1 1 1 2018 1 1 1 O3 (max 8 hr 2018 1 1 1 2018 0 0 0 2018 1 1 1 mean) Other (please specify)

2.6. Policy options considered in order to comply with the emission reduction commitments for 2020, and 2030, intermediate emission levels for 2025 The information required under this section shall be reported using the ‘Policies and Measures Tool’ (‘PaM tool’) provided for that purpose by the EEA.

2.6.1. Details concerning the PaMs considered in order to comply with the emission reduction commitments (reporting at PaM level)

Name and Affected Objectives Type(s) Primary, Implementation Authorit(y)(ies) Details of the Quantified expected Qualitative brief pollutant(s), of of and where period (M for responsible for methodologies emission reductions description of description select as individual PaM(s) ( appropriate, measures implementation used for (for individual PaM uncertainties of appropriate: PaM or ^) (M) additional selected for (M for measures analysis (e.g. or for packages of (M, where individual SOx, NOx, package sector(s) implementation) selected for specific PaMs, as available) PaM or NMVOC, of affected (†) implementation) models or appropriate) (kt, per package of NH3, PM2,5, PaMs (*) (M) Refer to those methods, annum or as a range, PaMs (M) (M); BC as a (M) listed in table underlying compared to WM component 2.3.2 as data) (M) scenario) (M) of PM2,5, appropriate. other (e.g. Hg, dioxins, GHG) (O) Start Finish Type Name 2020 2025 2030 please specify Installation SOx Energy Source- energy and 2020 2024 (a) DLI Data taken from 11-13 n/a n/a n/a of supply - based electricity National the annual report Desulphurisat installation pollution production Authority of the EAC ion units at of abatement control (b)Power Vassilikos technologies Plant EAC Power Plant Organisat ion Introduction SOx Energy – Source- energy and 2023 9999 (a) DLI Data taken from 0 0.5 – 0.5 – n/a and use of supply based electricity National the annual report 0.7 0.7 Natural gas in NOx switch to less pollution production Authority of the EAC 0 0.7 – 0.7 – the internal carbon- control (b)Power 0.9 0.9 market NMVOC intensive Plant EAC 0 0 0 fuels Organisat PM2,5 ion 0 0.07- 0.07- 0.09 0.09 BC 0 0.003- 0.003- 0.005 0.005

Reduced SOx Energy – Source- energy and 2020 2023 (a) DLI Data taken from 0.8-1.0 n/a n/a n/a working supply based electricity National the annual gas hours of the switch to less pollution production Authority emission Steam carbon- control (b)Power permission of Turbines at intensive Plant EAC EAC Dhekelia PM2,5 fuels Organisat 0.01- n/a n/a Power Plant ion 0.03 which are using HFO

Increase to SOx Energy – Fiscal energy and 2004 9999 National MECI page 882. 0.55- 0.65- 0.2-0.3 n/a the use of supply instruments; electricity Authority 0.65 0.75 RES in the increase in Regulatory production internal NOx renewable 0.15- 0.17- 0.04- market for energy 0.25 0.19 0.05 electricity production NMVOC 0.003- 0.004- 0.0017 0.005 0.005 - 0.0018

PM2,5 0.010- 0.008- 0.0009 0.012 0.009 - 0.0010

BC 0.0004- 0 0 0.0006

Further NH3 Agriculture - Information waste 2020 9999 National MARDE 1.4-1.5 1.4-1.5 1.5-1.6 n/a promotion of improved management/w Authority anaerobic animal waste aste digestion for management the treatment systems

2 http://www.mcit.gov.cy/mcit/energyse.nsf/C1028A7B5996CA7DC22580E2002621E3/$file/IRENA%20REPORT%202030_Jan_2015.pdf

55 and management of animal waste Reduce SOx Energy Voluntary/ Energy 2004 9999 National MECI 0.4-0.6 0.4-0.6 0.5-0.7 n/a energy consumption negotiated consumption Authority consumption - - efficiency agreements by promotion NOx improvement Regulatory 0.2-0.4 0.2-0.4 0.3-0.5 of energy in industrial efficiency NMVOC end-use 0.03- 0.03- 0.03- measures in sectors 0.05 0.05 0.05 the industrial sector PM2,5 0.1-0.2 0.1-0.2 0.1-0.2

Reduce SOx Energy – Fiscal; Energy 2008 9999 National MECI 0.42 0.41 0.406 n/a energy consumption Regulatory consumption Authority consumption - efficiency by improvement compulsory s of energy saving buildings; measures in appliances; new and services/ NOx 0.797 0.787 0.782 residential tertiary buildings and sector in the tertiary sector

Reduce SOx Energy – Voluntary/ Energy 2015 9999 National MECI 1.6-1.8 1.8-2.0 2.0-2.2 n/a energy consumption negotiated consumption Authority consumption - efficiency agreements by voluntary improvement energy s of

56 upgrade of NOx buildings and 0.2-0.4 0.4-0.6 0.6-0.8 existing services/terti residential, ary sector tertiary and public buildings. Increase to SOx Energy – Regulatory Energy supply 2007 9999 National MECI; 0.06- 0.08- 0.10- the use of supply ; Energy Authority MARDE 0.08 0.10 0.12 RES in the increase in consumption internal NOx renewable 0.12- 0.16- 0.20- market for energy 0.14 0.18 0.22 electricity, Energy heating and consumption cooling in the - demand residential management/ and tertiary reduction sector.

Maintenance NOx Transport - Regulatory Transport 2020 2040 National MARDE TSAP 16 IIASA n/a n/a n/a n/a of the use of alternative Authority report biofuels in the fuels for internal vehicles market in transport sector Increase to NOx Transport - Regulatory Transport 2007 9999 National MARDE n/a 1.6-1.8 2.7-2.9 3.4-3.6 n/a the use of alternative Authority new fuels for NMVOC 0.05- 0.27- 0.40- technologies vehicles; 0.07 0.29 0.50 and improved demand fuels in the PM2,5 management/ 0.14- 0.14- 0.24- transport reduction; 0.15 0.16 0.26 sector BC improved 0.015- 0.03- 0.06- transport 0.020 0.05 0.07

infrastructure

Add more rows as appropriate The responses to the field indicated with (*), (^) and (†) shall be filled in by using pre-defined reply options which are consistent with the reporting obligations under Regulation (EU) No 525/2013 on a mechanism for monitoring and reporting greenhouse gas emissions and Implementing Regulation (EU) No 749/2014. The responses to the field indicated with (*) shall be filled in by using the following pre-defined reply options, to be selected as appropriate (more than one objective can be selected, additional objectives could be added and specified under ‘other’) (M): 1. Energy supply: — increase in renewable energy; — switch to less carbon-intensive fuels; — enhanced non-renewable low carbon generation (nuclear); — reduction of losses; — efficiency improvement in the energy and transformation sector; — installation of abatement technologies; — Other energy supply.

2. Energy consumption: — efficiency improvements of buildings; — efficiency improvement of appliances; — efficiency improvement in services/tertiary sector; — efficiency improvement in industrial end-use sectors; — demand management/reduction; — Other energy consumption.

3. Transport: — deployment of pollution abatement technologies on vehicles, vessels and aircraft; — efficiency improvements of vehicles, vessels and aircraft; — modal shift to public transport or non-motorised transport; — alternative fuels for vehicles, vessels and aircraft (including electric); — demand management/reduction; — improved behaviour; — improved transport infrastructure; — Other transport.

4. Industrial processes: — installation of abatement technologies; — improved control of fugitive emissions from industrial processes; — Other industrial processes.

5. Waste management/waste: — demand management/reduction; — enhanced recycling; — improved treatment technologies; — improved landfill management; — waste incineration with energy use; — improved wastewater management systems; — reduced landfilling; — Other waste.

6. Agriculture: — low-emission application of fertilizer/manure on cropland and grassland; — other activities improving cropland management; — improved livestock management and rearing installations; — improved animal waste management systems; — Other agriculture.

7. Cross-cutting: — framework policy; — multi-sectoral policy; — Other cross-cutting.

8. Other: — Member States must provide a brief description of the objective. The responses to the field indicated with (^) shall be filled in by using the following pre-defined reply options, to be selected as appropriate (more than one type of PaMs can be selected, additional types of PaMs could be added and specified under ‘other’) (M): — Source-based pollution control; — Economic instruments;

— Fiscal instruments; — Voluntary/negotiated agreements; — Information; — Regulatory; — Education; — Research; — Planning; — Other, please specify. The responses to the field indicated with (†) shall be filled in by using the following pre-defined reply options, to be selected as appropriate (more than one sector can be selected, additional sectors could be added and specified under ‘other’) (M): — energy supply (comprising extraction, transmission, distribution and storage of fuels as well as energy and electricity production); — energy consumption (comprising consumption of fuels and electricity by end users such as households, services, industry and agriculture); — transport; — industrial processes (comprising industrial activities that chemically or physically transform materials leading to greenhouse gas emissions, use of greenhouse gases in products and non-energy uses of fossil fuel carbon); — agriculture; — waste management/waste; — cross-cutting; — other sectors; please specify.

2.6.2. Impacts on air quality and the environment of individual PaMs or packages of PaMs considered in order to comply with the emission reduction commitments (M, where available) Where available, impacts on air quality (reference can also be made to recommended air quality objectives by the WHO) and environment

2.6.4. Additional details concerning the measures from Annex III Part 2 to Directive (EU) 2016/2284 targeting the agricultural sector to comply with the emission reduction commitments

If yes, Has the PaM been Is the PaM included in applied exactly? the national air — indicate section/page Yes/No (M) pollution control programme? number in If no, describe the modifications that Yes/No (M) programme: (M) have been made (M) A. Measures to control ammonia emissions (M)

1. Member States shall establish a national advisory code of good No. The measure is agricultural practice to control ammonia emissions, taking into account applied to a big extent3. the UNECE Framework Code for Good Agricultural Practice for Reducing Ammonia Emissions of 2014, covering at least the following items:

(a) nitrogen management, taking into account the whole nitrogen a) No cycle; (b) livestock feeding strategies; b) Yes (c) low-emission manure spreading techniques; c) Yes (d) low-emission manure storage systems; d) Yes (e) low-emission animal housing systems; e) Yes (f) possibilities for limiting ammonia emissions from the use of mineral fertilisers. f) Yes

2. Member States may establish a national nitrogen budget to monitor the No changes in overall losses of reactive nitrogen from agriculture, including ammonia, nitrous oxide, ammonium, nitrates and nitrites, based on the principles set out in the UNECE Guidance Document on Nitrogen Budgets

3 Link: http://www.moa.gov.cy/moa/da/da.nsf/All/C06F236A050B2C6DC2257A230049DF86/$file/KodikasOrthisGeorgikisPraktikis.pdf

3. Member States shall prohibit the use of ammonium carbonate fertilisers and may reduce ammonia emissions from inorganic fertilisers by using the following approaches: (a) No (a) replacing urea-based fertilisers by ammonium nitrate-based fertilisers;

(b) where urea-based fertilisers continue to be applied, using methods (b) Yes. Use of fertilizers that that have been shown to reduce ammonia emissions by at least 30 % contain ammonia compared with the use of the reference method, as specified in the release inhibitors and Ammonia Guidance Document; use injection system

when applying (c) promoting the replacement of inorganic fertilisers by organic (c) Yes. Educating farmers and fertilisers and, where inorganic fertilisers continue to be applied, give incentives in order spreading them in line with the foreseeable requirements of the to use organic receiving crop or grassland with respect to nitrogen and phosphorus, fertilizers. also taking into account the existing nutrient content in the soil and nutrients from other fertilisers.

4. Member States may reduce ammonia emissions from livestock manure by using the following approaches: (a) reducing emissions from slurry and solid manure application to (a) Yes arable land and grassland, by using methods that reduce emissions by at least 30 % compared with the reference method described in the Ammonia Guidance Document and on the following conditions: (i) only spreading manures and slurries in line with the foreseeable (i) No nutrient requirement of the receiving crop or grassland with respect to nitrogen and phosphorous, also taking into account the existing nutrient content in the soil and the nutrients from other fertilisers;

(ii) not spreading manures and slurries when the receiving land is water saturated, flooded, frozen or snow covered; (ii) Yes

(iii) applying slurries spread to grassland using a trailing hose, trailing shoe or through shallow or deep injection; (iii) Yes (iv) incorporating manures and slurries spread to arable land within the soil within four hours of spreading. (iv) No

(b) reducing emissions from manure storage outside of animal houses, by using the following approaches: (i) for slurry stores constructed after 1 January 2022, using low (b) (i) No emission storage systems or techniques which have been shown to reduce ammonia emissions by at least 60 % compared with the reference method described in the Ammonia Guidance Document, and for existing slurry stores at least 40 %;

(ii) covering stores for solid manure; (b) (ii) No

(iii) ensuring farms have sufficient manure storage capacity to spread manure only during periods that are suitable for crop growth.

(b) (iii) (c) reducing emissions from animal housing, by using systems which have been shown to reduce ammonia emissions by at least 20 % (c) No compared with the reference method described in the Ammonia Guidance Document;

(d) reducing emissions from manure, by using low protein feeding (d) No strategies which have been shown to reduce ammonia emissions by at least 10 % compared with the reference method described in the Ammonia Guidance Document.

B. Emission reduction measures to control emissions of fine particulate matter (PM2,5) and black carbon (M)

1. Without prejudice to Annex II on cross-compliance of Regulation (EU) Yes Page 784 Field burning of 1 agricultural residues No 1306/2013 of the European Parliament and of the Council ( ), Member States may ban open field burning of agricultural harvest was a widespread residue and waste and forest residue. Member States shall monitor and practice until 2003 when enforce the implementation of any ban implemented in accordance a normative banning with the first subparagraph. Any exemptions to such a ban shall be crop residues burning limited to preventive programmes to avoid uncontrolled wildfires, to came into place (Fire Prevention of Outdoors control pest or to protect biodiversity. Law of 1988 (220/1988) as amended by 109(I)/2002).

2. Member States may establish a national advisory code of good agricultural practices for the proper management of harvest residue, on the basis of the following approaches: (a) Yes (a) improvement of soil structure through incorporation of harvest residue;

(b) improved techniques for incorporation of harvest residue; (b) Yes

4 https://www.airquality.gov.cy//sites/default/files/2019- 03/National%20Air%20Quality%20Action%20Plan%20for%20the%20Improvement%20of%20the%20Air%20Quality%20in%20Cyprus%202018_3.pdf

(d) improvement of the nutrient status and soil structure through incorporation of manure as required for optimal plant growth, thereby avoiding burning of manure (farmyard manure, deep-straw bedding).

C. Preventing impacts on small farms (M)

In taking the measures outlined in Sections A and B, Member States shall ensure that impacts on small and micro farms are fully taken into account. Member States may, for instance, exempt small and micro farms from those measures where possible and appropriate in view of the applicable reduction commitments (M)

2.7. The policies selected for adoption by sector, including a timetable for their adoption, implementation and review and the competent authorities responsible

2.7.1. Individual PaMs or package of PaMs selected for adoption and the competent authorities responsible Name and Currently Interim targets and Competent brief Relevant planned indicators selected to Currently planned authorities description of comments timetable for monitor progress in timetable for responsible for individual Currently arising from implementation implementation of the review (in case the individual PaM or planned consultation(s) (M) selected PaMs (O) different from PaM or package of year of in relation to general update of package of PaMs (M) adoption the individual the national air PaMs (M) Refer to those (M) PaM or Start End Interim pollution control Refer to those Indicators listed in table package of year year Targets programme every listed in table 2.6.1 as PaMs (O) four years) (M) 2.3.2 as appropriate. appropriate.

Installation of Desulphurisation 2020 2020 2024 2021 DLI / EAC units at Vassilikos Power Plant Introduction and use of Natural gas in the internal 2023 2023 9999 2024 MECI market Reduced working hours of the Steam Turbines at Max 6000 / Working 2021 2020 2023 2021 DLI / EAC Dhekelia Power year hours Plant which are using HFO Increase to the use of RES in the 2004 2004 9999 2020 MECI / MARDE internal market for

66 electricity production Further promotion of anaerobic digestion for the 2020 2020 9999 2025 MARDE treatment and management of animal waste Reduce energy consumption by promotion of 2004 2004 9999 2023 MECI energy efficiency measures in the industrial sector Reduce energy consumption by compulsory energy saving measures in 2020 2008 9999 2023 MECI 8new residential buildings and in the tertiary sector Reduce energy consumption by voluntary energy upgrade of existing 2015 2015 2025 2015 MECI residential, tertiary and public buildings. Increase to the use of RES in the 2004 2004 9999 2020 MECI / MARDE internal market for electricity, heating

67 and cooling in the residential and tertiary sector. Maintenance of the use of biofuels in 2007 2020 2040 2020 MARDE / MTCW the internal market in transport sector Increase to the use of new technologies 9999 MARDE / MECI / and improved fuels 2007 2007 2020 in the transport MTCW sector

2.7.2. Explanation of the choice of selected measures and an assessment of how selected PaMs ensure coherence with plans and programmes set up in other relevant policy areas An explanation of the choice made among the measures considered under 2.6.1 to determine the final set of selected measures (O) Coherence of the selected PaMs with air quality objectives at national level and, where appropriate, in neighbouring Member States (M) Coherence of the selected PaMs with other relevant plans and programmes established by virtue of the requirements set out in national or Union legislation (e.g. national energy and climate plans) (M)

2.8. Projected combined impacts of PaMs (‘With Additional Measures’ — WAM) on emission reductions, air quality and the environment and the associated uncertainties (where applicable) – Not applicable

2.8.1. Projected attainment of emission reduction commitments (WAM) Pollutants Total emissions (kt), consistent with % emission reduction National emission National emission (M) inventories for year x-2 or x-3, please achieved compared with reduction commitment reduction commitment specify the year (M) 2005 (M) for 2020-2029 (%) (M) from 2030 (%) (M) 2005 base 2020 2025 2030 2020 2025 2030 year

SOx NOx NMVOC NH3 PM2,5 Date of emission projections (M)

2.8.2. Non-linear emission reduction trajectory Where a non-linear emission reduction trajectory is followed, demonstrate that it is technically or economically more efficient (alternative measures would involve entailing disproportionate costs), will not compromise the achievement of any reduction commitment in 2030, and that the trajectory will converge on the linear trajectory from 2025 onwards (M, where relevant) Refer to costs listed in table 2.6.3 as appropriate.

2.8.3. Flexibilities Where flexibilities are used, provide an account of their use (M) No flexibilities are used.

2.8.4. Projected improvement in air quality (WAM) A. Projected number of non-compliant and compliant air quality zones (O)

AAQD Projected number of non-compliant air Projected number of compliant air Total number of air quality values quality zones quality zones zones Specify base 2020 2025 2030 Specify base 2020 2025 2030 Specify 2020 2025 2030 year year base year

PM2,5 (1 yr) NO2 (1 yr) PM10 (1 yr) O3 (max 8 hr mean) Other (please specify) B. Maximum exceedances of air quality limit values and average exposure indicators (O)

AAQD Projected maximum exceedances of air quality limit values across all Projected average exposure indicator (only for values zones PM2,5 (1 year) Specify base year 2020 2025 2030 Specify base year 2020 2025 2030

PM2,5 (1 yr) NO2 (1 yr) NO2 (1 hr)

PM10 (1 yr) PM10 (24 hrs) O3 (max 8 hr mean) Other (please specify) C. Illustrations demonstrating the projected improvement in air quality and degree of compliance (O)

Maps or histograms illustrating the projected evolution of ambient air concentrations (for at least NO2, PM10, PM2,5 and O3, and any other pollutant(s) that present(s) a problem) and which show, for instance, the number of zones, out of the total air quality zones, that will be (non)compliant by 2020, 2025 and 2030, the projected maximum national exceedances, and the projected average exposure indicator D. Qualitative projected improvement in air quality and degree of compliance (WAM) (in case no quantitative data is provided in the tables above) (O)

Qualitative projected improvement in air quality and degree of compliance (WAM) For annual limit values, projections should be reported against the maximum concentrations across all zones. For daily and hourly limit values, projections should be reported against the maximum number of exceedances registered across all zones.

2.8.5. Projected impacts on the environment (WAM) (O)

Base year used to assess environmental 2020 2025 2030 Description impacts (please specify) Member State territory exposed to acidification in exceedance of the critical load threshold (%) Member State territory exposed to eutrophication in exceedance of the critical load threshold (%) Member State territory exposed to ozone in exceedance of the critical level threshold (%) Indicators should be aligned with those used under the Convention on Long Range Transboundary Air Pollution on exposure of ecosystems to acidification, eutrophication and ozone (https://www.rivm.nl/media/documenten/cce/manual/Manual_UBA_Texte.pdf).

(1) Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).

Appendix I Cyprus commitments and efforts in the field of climate and energy (DoE, 2019)

Update relevant to Cyprus’ low-carbon development strategy (LCDS) and its implementation

Information on Cyprus’ low-carbon development strategy and its implementation was submitted to the Commission on 16 March 2015. In accordance with Article 13(1)(a) of the MMR it should be noted that since then there have been no changes to the strategy, and no new information on its implementation. Information required under Article 21(a-e) of the IR can be obtained from the 16 March 2015 submission.

Information on applicable and relevant national policies and measures, or groups of measures, and on implementation of applicable and relevant Union policies and measures, or groups of measures, that limit or reduce greenhouse gas emissions by sources or enhance removals by sinks, presented on a sectoral basis and organized by gas or group of gases

The majority of scholars today agree on the growing influence of the economy and society on the earth's climate through activities such as fossil fuel burning, rainforest deforestation and livestock farming. Recognizing the impact of human activities on the climate, the international community agreed at the Rio Summit in Rio de Janeiro in 1992 with the United Nations Framework Convention on Climate Change. Cyprus ratified the Convention in 1997. The objective of the Convention is to stabilize concentrations of greenhouse gases in the atmosphere at levels that prevent dangerous impacts on the climate from human activities.

In 1997 the Kyoto Protocol was adopted, which set legally binding greenhouse gas emission limit values for the period 2008-2012. Cyprus has ratified the Kyoto Protocol as a state without obligations to reduce or limit emissions. In 2012, at the Climate Change Summit held in Doha, Qatar, the second binding period of the Protocol (2013-2020) was agreed. As part of the EU's commitments (20% reduction in greenhouse gas emissions by 2020 compared to 1990), the Republic of Cyprus also assumed the national targets for a 21% reduction in greenhouse gas emissions by 2020 relative to 2020 with 2005 from electricity, cement and ceramics, and 5% in other sectors such as agriculture, transport, waste, etc., compared to 2005 levels.

Wanting to prepare for the post-2020 international negotiations, EU leaders agreed in October 2014 to reduce greenhouse gas emissions by at least 40% by 2030 compared to 1990. This target for Cyprus corresponds to a reduction of greenhouse gas emissions by 42% by 2030 compared to 2005 by electricity, cement and ceramics industries (ETS sectors), and 24% in other sectors such as agriculture, transport, waste, etc. (non-ETS sectors), compared to 2005 levels.

The culmination of the collective efforts that took place in recent years to reduce greenhouse gas emissions and hence to tackle climate change effectively by the global community is the historic agreement reached in Paris in December 2015 at the 21st Session of the Parties to the United Nations Framework Convention on Climate Change. The Paris Agreement entered into force on 4 November 2016. Cyprus completed the ratification process of the Paris Agreement on 4 January 2017.

The effects of climate change are becoming increasingly felt both in Europe and globally. These are expected to be particularly serious for Cyprus, as climate change is already evident; over the last 100 years there has been an increase in average temperature and a decrease in average annual rainfall. The effects of climate change will not only continue but will also increase over the next decades.

In view of the above, Cyprus is faced with the challenge of developing its economy in a way that reduces greenhouse gas emissions, while taking appropriate measures and actions to adapt to climate change.

Climate change is a horizontal issue requiring the involvement and activation of almost all Ministries of Cyprus, including the Ministry of Agriculture, Rural Development and Environment, the Ministry of Energy, Trade, Industry and Tourism, the Ministry of Foreign Affairs, the Ministry of Transport, Communications and Works, the Ministry of Labour, Welfare and Social Insurance, the Energy Regulatory Authority and the Local Authorities. As a result, the role of the Environment Department of the Ministry of Agriculture, Rural Development and Environment as a national coordinator is upgraded and strengthened. Additionally, an important factor in the effort is the continuous improvement of the institutional framework.

Climate change mitigation is one of the main targets identified in the Cypriot strategy for sustainable development launched by MARDE in 20075. The objective of the strategy is the development of a set of principles for the formulation of an action plan in line with international challenges, and in accordance with EU policy directions and adjusted to the specific national circumstances.

Strategic planning

In February 2014, the House of Parliament voted the Law on Fiscal Responsibility and Budget Systems (FRBSL) no. 20(I)/2014, which covers a wide range of issues related to Management of Public Finance. The goal was to introduce new principles for budgeting that strengthen the flexibility of economic operators and the transparency of the use of state resources, achieving measurable results. In this context, ministries have been asked to implement new procedures for the preparation of a medium-term strategy plan and budgeting on the basis of those activities to achieve their objectives.

5 http://www.un.org/esa/agenda21/natlinfo/countr/cyprus/nsds_2007en.pdf

The importance of climate change mitigation (and adaptation) for Cyprus is highlighted through its inclusion as the first target of the strategic plan of the Department of Environment and as one of the strategic goals of the Ministry of Agriculture, Rural Development and Environment6.

National Policies and measures

Given that Cyprus was a non-Annex I party to the UNFCCC until 2013, national policies and measures for the reduction of greenhouse gas emissions have been developed for the first time in 2007 for the implementation of EU Decision 280/20047. Ever since, policies and measures are reviewed, revised and updated every 2 years. The involved ministries are presented in Table 1.

Table 1. Involved ministries to climate change mitigation policies and measures Ministry Issues Ministry of Agriculture, Rural Development and Agriculture Environment Forestry Land use Waste Ministry of Energy, Trade, Industry and Tourism Energy Ministry of Transport, Communications and Works Transport Ministry of Finance National budgets Ministry of Interior Land use

The national policies are prepared, updated, and monitored by the Ministry of Agriculture, Rural Development and Environment (MARDE), in collaboration with the responsible Ministry for each measure or policy. Energy is the sector which has to contribute the most in the reduction

of greenhouse gas emissions of Cyprus. The emissions of the energy sector except transport increased from 2,727 Gg CO2 eq. in 1990 to 4,458

Gg CO2 eq. in 2016, corresponding to 63% increase8. In 2016, emissions increased by 6% compared to 2015.

6 http://www.moa.gov.cy/moa/agriculture.nsf/Stratigikos%20Sxediasmos%202016-2018%20EL%20-%20YpOik%20150901.pdf 7 Decision No 280/2004/EC of the European Parliament and of the Council of 11 February 2004 concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol 8 Kythreotou N. and T. Mesimeris, 2018, Cyprus National Greenhouse Gas Inventory 2018. May 2018, available at https://unfccc.int/documents/65701

Several policies and measures affecting the abovementioned objectives originate at the EU level, such as the fuel quality directive, emission performance standards for new vehicles, the regulation on fluorinated greenhouse gases, the landfill directive and the common agricultural policy. These are not described further here.

Further, several policies and measures targeting renewable energy and energy efficiency affect the reduction of greenhouse gas emissions in Cyprus. An overview of key policies affecting the national climate target to 2030 is presented in Table 2.

Several additional measures are under examination, especially for the transport sector, which are anticipated to have considerable contribution to the reduction of greenhouse gas emissions. These measures will be included in the final submission of the NECP at the end of 2019.

Table 2. Overview of key policies affecting the national climate target to 2030 Sector Information Energy Renewable Energy penetration Energy Efficiency (including transport measures) Natural gas in electricity production Industry F-gases recovery Agriculture Promotion of anaerobic digestion for the treatment of animal waste Waste Reduction of waste to solid waste disposal sites from sorting at production level Reduction of organics to landfills Increase of amount of organic wastes treated by composting Promotion of anaerobic digestion for the treatment of the organic fraction of the municipal solid waste Biogas recovery from old sold waste disposal sites (deep unmanaged)

The contents of the sections that follow (2.3.1 - 2.3.6) contain information regarding:

- The objective of the policy or measure and a short description of the policy or measure (MMR Art. 13(1)(c)(i)) - Type of policy instrument (MMR Art. 13(1)(c)(ii))

- Status of implementation of the policy or measure or group of measures (MMR Art. 13(1)(c)(iii))

Indicators to monitor and evaluate progress over time (MMR Art. 13(1)(c)(iv)) are not used and therefore not included in this report. Quantitative estimates of the effects on emissions by sources and removals by sinks of greenhouse gases (MMR Art. 13(1)(c)(v)) are presented in Chapter 3.

Where available, estimates of the projected costs and benefits of policies and measures, as well as estimates, as appropriate, of the realised costs and benefits of policies and measures (MMR Art. 13(1)(c)(vi)) are reported.

Where available, all references to the assessments and the underpinning technical reports (MMR Art. 13(1)(c)(vii)) are reported.

Sectoral policies and measures: Energy

Renewable Energy Sources

Cyprus Government has development various support schemes, incentives and soft measures over the period 2008-2018 in order to further support the Renewable Energy Sources penetration. Especially in the Electricity Sector where the penetration was very low, a lot of support schemes have been developed over the period. A summary table of the existing and additional policies and measures on energy is attached in Appendix II (in Greek).

Based on the various incentives the broken down generation, by technologies and the renewable based electricity production over the past 10 years in Cyprus is listed in the table below.

Table 3. Electricity Generation per Technology 2008-2017 Electricity production from Solar Wind Biogas Total renewable sources (GWh per year) 2008 2.55 0 11.54 14.09 2009 3.83 0 26.52 30.35 2010 6.39 31.37 35.12 72.88 2011 11.94 114.31 51.61 177.86 2012 21.54 185.48 50.02 257.04 2013 47.11 231.04 48.86 327.01 2014 83.59 182.85 50.55 316.99

Electricity production from Solar Wind Biogas Total renewable sources (GWh per year) 2015 126.66 221.86 51.24 399.76 2016 147.65 226.7 52.02 426.37 2017 173.73 211.45 51.91 421.68

In the table below, broken down by technologies and how much was the electricity produced from renewable sources sold at a subsidized price over the past 10 years, is shown. The electricity generated for own consumption is not included.

Table 4. Renewable electricity sold at a subsidized price (GWh per year) 2008-2017. Year Solar Wind Biogas Total 2008 1.64 0 7.81 9.45 2009 2.91 0 19.85 22.76 2010 4.59 31.37 24.8 60.76 2011 9.16 114.25 39.71 163.12 2012 18.65 185.05 37.63 241.33 2013 43.82 230.61 35.83 310.26 2014 60.11 182.42 37.46 279.99 2015 85.75 221.43 37.41 344.59 2016 94.41 226.27 36.61 357.29 2017 111.36 211.02 36.5 358.88 From 2016 onwards all the new installed RES projects (PV Parks) they are not receiving any subsidy. Table 5, shows the broken down cost, by technologies and the actual subsidy payed to renewable energy producers.

Table 5. Subsidy paid to RES Producers in million Euro per Year 2008-2017 Solar Wind Biogas9 2008 0.03 0

2009 0.135 0

2010 0.055 0 0.122

9 In 2013-2014 the market Price was higher than FiT Price for Biomass Projects. The excess amount was return to RES and Energy Efficiency fund.

Solar Wind Biogas9 2011 1.365 3.607 0.696 2012 2.369 2.223 0 2013 4.402 5.725 0 2014 9.624 10.433 0.266 2015 11.349 19.637 1.565 2016 14.005 24.815 1.783 2017 11.957 18.299 1.222

In addition, in Table 6 there is an analysis broken down by technologies and the specific subsidy of the electricity produced from renewable sources in Cyprus over the past 10 years.

It should be also noted that as of 2015, all the new support schemes for Electricity production will receive the so-called avoidance cost, which corresponds to an ideal marker price. The scheme will continue until the full liberalization of the market, where the new subsidized electricity and the subsidies paid to producers in provided through avoidance cost. The current selling price for electricity produced by renewable sources (avoidance cost) is available in the link https://www.eac.com.cy/EL/EAC/RenewableEnergySources/Pages/resenergypurcheac.aspx.

Electricity for own Consumption

Support schemes for the production of electricity from renewable energy sources for own use such Net-metering, net-billing and self- consumption have been implemented since 2013 as national policy to promote RES electricity. Currently the Net-metering category is applied for small scale photovoltaic systems with capacity up to 10KW, for all consumers (residential and non-residential). The scope of the net-metering is to provide the option to residential and small commercial consumers to cover all or part of their electricity consumption from a PV. The generated RES electricity is subtracted from building’s electricity consumption. Consumers pay only for the difference between the energy consumed and energy produced (net electricity used) plus a cost that reflects the cost of the electricity grid to support continuous supply and taxes (VAT, RES levy).

The above scheme is expected to continue, with some modifications in the near future in order to enhance better the self-consumption for small systems.

Table 6. Subsidy per renewable energy source in Cyprus for the period 2008-2017 Specific subsidy 2008 2009 2010 2011 2012 2013 2014-2017 of the renewable electricity (EUR/MWh) Solar Households Households 0.31€/kWh Households Commercial No FiT Option 1: 0.205€/kWh Option 1: 0.225€/kWh (21-150kW) 20 0.28€/kWh 0.138€/kWh Scheme for net- + 55% + 55% years contract (≤7kW) 15 years (21-150kW) 20 metering and Option 2: Option 2: contract years contract self-generation 0.383€/kWh 15 years 0.383€/kWh 15 years Commercial contract contract 0.25€/kWh Commercial Commercial (≤150kW) 20 Option 1: 0.205€/kWh Option 1: 0.205€/kWh years contract + 40% + 40% Option 2: Option 2: 0.335€/kWh 15 years 0.36€/kWh (≤ 20kW) contract Option 3: 0.34€/kWh (21-150kW) 20 years contract Wind 0.166€/kWh 0 0.145€/kWh 20 years contract 20 years contract Biomass 0.108€/kWh 20 years 0.135€/kWh contract 20 years contract Biogas 0 0.1145€/kWh 20 years contract Hydro 0 0 0 0 0 0 0

Self-generation / Net billing

With Self-generation and Net-billing schemes, PV generated energy has to be self-consumed within the same 20-min time period it was generated. If local energy demand exceeds PV production, energy is imported from the grid. With Self-generation scheme, excess PV generation is exported to the grid without any economic compensation nor additional fee. A compensation for excess energy is foreseen by the Net-Billing scheme. The size of these systems is basically unlimited (up to 10MW). Some existing burdens that exist (i.e. the long procedure needed for town planning or building permit), is expected to be overcome in the following years. This support scheme is the most effective for all industrial and commercial consumers, since the self-consumer is almost excluded for all the taxes for the energy that is self- consumed.

Development of a specific Software tool to perform technical and economical evaluations of simple energy systems taking into account Cyprus’s regulatory and tariff context/framework.

In order to enhance the above schemes (net-metering, net-billing and self-consumption), a software tool will be developed and provided free of charge to both energy consultants and to the end users. With this tool (that will be monitored and maintain from the government), the end user can have an indication of what size system to install that can make economic sense. On the other hand, the advance mode of the software tool, will give some more insights to the consultants in order to advice better the prosumers in other sectors as well (Energy efficiency, storage, etc.).

The operation of the energy system will be simulated by making energy balance calculations in each time step (interval) of the year. For each time step, the SW tool compares the electricity demand to the energy that the system can supply in that time step, and calculates the flow of energy to and from each component of the system and the corresponding cash flows. For systems that include batteries, SW tool will determine in each time step whether to charge or discharge the batteries.

Software tool estimates also the cost of installing and operating the system over the lifetime of the project, defined by the user as an input. Economic and Financial calculations account for costs such as initial investment, replacement, operation and maintenance, network fees and tariffs, RES incentive schemes etc.

New Forecasting Tool that will help further the penetration for RES

At a basic level Variable Renewable Energy (VRE) forecasting aims to predict the generation of renewable energy technologies with variable outputs that are strongly affected by weather (wind, sunshine, etc.). VRE forecasting was first developed for use by the wind power industry

81 but has been adapted to provide forecasts for solar technologies including PV and CSP. Modern VRE forecasting has achieved a high level of accuracy through a combination of models and analysis tools that use historic and real-time weather observations along with characteristics and real-time generation of VRE assets to predict VRE power generation. VRE generation can be forecast across numerous different time scales, from minutes to hours to days and across various system scales, from single wind turbines to PV panels to CSP units up to regional systems with gigawatts of generation capacity.

Due to the isolation of the island and the various weather phenomena in Cyprus, deterministic numerical weather prediction (NWP) model forecast can provide useful information for decision-making.

Ministry of Energy has requested a Technical Assistance, through SRSS, in order to improve and correlate all the existing forecasting models in an effort to create a new weather to energy model tool for RES that will participate to the market and also for the Transmission System Operator for the smoother penetration of Renewables. One important aspect that will need to be identified and examine, is the dust forecast prediction, which occurs vary often in the Area of Cyprus.

Forecasting aims to provide an accurate prediction of when and how much power VRE assets will generate at a given time in the following hours (i.e. up to 6 hours), along with an associated probability. This information will support TSO in reducing VRE integration costs and assists utilities and independent power producers (IPP) in more efficient operation of VRE assets, which increases revenue and makes VRE more attractive to investors as it was highlighted in IRENA study.

In general forecasting will help to increase the share of VRE generation that can be safely and economically integrated into an electricity grid.

Alternative fuels – Biofuels in transport

Biofuels are liquid or gaseous transport fuels such as biodiesel and bioethanol which are made from biomass. They serve as a renewable alternative to fossil fuels in the EU's transport sector, contributing to reduction of greenhouse gas emissions and improvement the EU's security of supply. Each member state is obliged to fulfil two obligatory targets by 2020, setting by the relevant EU Directives, 2009/28/EC and 2009/30/EC: 10% of the energy consumption of transport sector comes from renewable sources such as biofuels, and fuel suppliers are required to reduce the greenhouse gas intensity of the transport fuels that they enter in the market by 6% compared with the fuel baseline standard (greenhouse gas emission of EU transport fuels mix in 2010). Currently, the percentage of biofuels to transport fuels is at 2.5% and the greenhouse gas emission reduction is at 1%. These targets will gradually be increased until 2020 in order to meet the obligatory targets.

The European Directive 2014/94/EU on the Deployment of Alternative Fuels Infrastructure establishes a common framework for measures to develop the market for alternative fuels in the transport sector and the implementation of relevant infrastructure within the Union in order to minimize dependence on liquid minerals and reduce the environmental impact in the transport sector. Within the framework of the directive, which sets practical goals, the development of the market and related infrastructure for the use of electricity, liquefied natural gas (LNG), compressed natural gas (CNG) and hydrogen in transport is specifically promoted. Directive 2014/94/EU is a tool to meet the mandatory 2020 target for road transport, i.e. (a) 10% energy from RES in transport (Directive 2009/28/EC) and b) 6 % reduction in greenhouse gas emission intensity in the life cycle of road transport fuels (Directive 2009/30/EC). The competent authority for the achievement of those targets is the Ministry of Energy, Trade, Industry and Tourism. A National Policy Framework describing national targets and guidelines, support actions and policies for the development of alternative fuels and the necessary infrastructures was prepared by the Ministry of Transport, Communications and Works in cooperation with the Ministry of Energy, Commerce and Industry.

Charging points and infrastructures for electric vehicles have been installed in public buildings and in public roads. There are currently 18 double charging stations in Cyprus: 6 charging stations in Nicosia, 5 in Limassol, 2 in Larnaca, 2 in Ammochostos and 3 in Paphos. Additionally, the Department of Electromechanical Services is proceeding to the installation of 10 high charging stations in high ways and public roads. Although the numbers are still very small, the expectation is that the registration of electric cars will increase considerably over the next five years. New electric car sales are expected to comprise 25%-50% of total vehicles on the road by 2040.

The installation of LPG systems in vehicles and LPG refueling points in retail stations have also started in 2017 and will reduce the emission of pollutants and fuel consumption in old vehicles.

After analyzing all the possible options for Cyprus and due to various uncertainties and political decisions, as well as various externalities, it was decided that the scenario with existing measures that it will be adopted for the current NECP is as shown below:

201 Current Cyprus Energy System 2018 8

202 0 No imported Natural Gas (imported) Gas Available

202 3 Cyprus Remains Cyprus Electrical Cyprus Remains Cyprus Electrical Electrical Isolated Interconnected Electrical Isolated Interconnected

202 4 Indigenous gas Gas or EVs in Central Storage Distributed Storage exported via LNG Transport & Energy Available (Pumped) + and Gas in terminal and Efficiency +RES Distribution Storage Transportation available for Power additional measures

203 0 High RES & Energy High Energy WAM (1) Efficiency Scenario Efficiency WAM (3) (WAM 2) WEM

Figure 2. Policy Decision Tree and Scenario’s With Existing Measures (WEM) and 3 possible pathways With Additional Measures (WAM)

ENERGY EFFICIENCY

The existing and additional policies and measures for energy efficiency are described below. A summary table on the existing and additional polices and measures on energy efficiency are attached in Appendix II (in Greek).

Existing policies and measures

The energy saving measures planned by 2020 and those that have been implemented in the previous years in each sector and those that will be implemented by 2020 (buildings sector, transport sector, residential sector, tertiary sector, public sector and industrial sector) for achieving the national target, as well as all legislative and non-legislative measures at national level for the promotion of energy efficiency.

The major implemented/ ongoing measures are:

Legislative measures (implemented /ongoing)

 Minimum energy performance requirements for new buildings, buildings that undergo major renovation and building elements that are retrofitted.  Legislation that defines the technical requirements of Nearly Zero Energy Buildings.  Compulsory issuing of Energy Performance Certificates (EPC) for new buildings and buildings that are sold or rented.  Compulsory inspection of large air conditioning systems and heating systems with boiler.  Requirements for technical building systems installed in existing buildings  Legislation for the qualification of technical building systems installers  Legislation for promotion of combined heat and power generation systems and high efficiency standards in heating and cooling systems.  Legislation for energy efficiency (energy efficiency in public sector, energy efficiency in metering and billing, in transformation, transmission and distribution, energy audits etc)  Legislation for regulating the market for energy auditing in buildings, industries and transport and the operation of Energy Service Companies (ESCOs)  Legislation for energy labelling and market surveillance  Legislations for setting up energy efficiency obligation scheme for energy companies

Information and training measures (implemented/ongoing)

 Training and Licensing of Energy Auditors.  Licensing of ESCOs.  Training of Energy Managers.  Training and Licensing of Qualified Experts (Issuing Energy Performance Certificates of buildings).  Certification s of small scale Renewable Energy Sources installers.  Training and licensing of technical building system installers  Licensing of Heating Systems Inspectors.  Licensing of Air-conditioning Systems Inspectors.  Promoting the role of energy managers within business. The energy manager monitors energy use in a business and promotes the implementation of actions to reduce energy consumption.  Promotion of energy management system  Training of Energy Saving Officer in the public sector. About 700 officers are assigned on government owned buildings. They are responsible for energy efficiency in each public building and they report back on the measures and savings achieved annually.  Annual information campaigns for energy efficiency. The campaign uses the logo “Save energy-Save money”  Annual competition for schools for promoting Energy Efficiency, 5 radio spots broadcasted by radio stations all over Cyprus, leaflets, workshops, annual fairs, lectures. Information actions promote energy efficiency investments, energy performance certificates, energy audits and energy performance contacting.  More targeted awareness increase actions are implemented in 2018 and 2019 with technical assistance provided by EU (SRSS and Environment Agency Austria and Cyprus Energy Agency), in order to increased awareness of enterprises, industries, citizens, local authorities and journalists of the importance of energy efficiency and of opportunities to save energy and take steps towards saving energy. It will include: an electronic tool (in web-based user-friendly interface) for the calculation of energy savings that will enable households to have a clear view on cost effectiveness of potential energy saving measures, the establishment of the Energy Efficiency Network of enterprises and industries and Event-based awareness campaign for citizens, local authorities and journalists. Performance indicators will be used to evaluate their effectiveness.

Public financing schemes and other financial Measures (implemented/ongoing)

 53 million euro has been secured by the European and Structural Funds 2014-2020 for grant schemes and projects for energy efficiency investments in private and public buildings. 33 million euro will be allocated for improving the energy efficiency for buildings used by SMEs and households while, the remaining amount will be allocated for improving the energy efficiency in central government public buildings. Moreover, 1,17 million Euro have been secured from the EU structural and cohesion funds for the period 2014-2020 for pilot projects of combined heat and power generation in public and semi-public buildings. The projects in public sector have started in 2018.  The Ministry of Energy, Commerce and Industry (MECI) announced in 2017, the operation of a support scheme for the installation of cogeneration systems fueled by biomass/biogas for the production of electricity for self-consumption. MECI announced a support scheme based on net-billing principle for the installation of High Efficiency combined heat and power generation with capacity up to 5MW.  A support scheme (Saving – Upgrading) was enacted in 2015 for the energy renovation of existing houses and existing buildings owned or used by small and medium enterprises utilizing European and Structural Funds 2014-2020 (33 million euro). The support scheme provides direct grants for the application of thermal insulation and other energy efficiency measures in buildings that will upgrade their energy class on the building’s Energy Performance Certificate to at least B or achieve energy saving of at least 40% or upgrade the building to the nearly zero energy level. A 2nd phase of a scheme was announced in 2018 providing grants for energy efficiency upgrade for households and multifamily buildings (European and Structural Funds 2014-2020)  Support scheme “Solar Energy for All” for on-the-site production and consumption of RES for own use which provides: (a) the installation of Net-metering photovoltaic systems with capacity up to 5KW connected to the grid for all consumers (residential and non-residential) and (b) the self-generation systems with capacity up to 10MW for commercial and industrial consumers.  Support scheme for the replacement of old solar domestic hot water heating systems (f national funding).  Energy poverty, vulnerable consumers’ categories and measures to protect them were defined in a Ministerial Decree which entered into force in 14/9/2015. The Ministerial Decree includes measures such as (a) reduced prices on electricity tariffs, (b) financial incentives for participating in a scheme for installing a net-metering Photovoltaic system with a capacity of up to 3kW, (c) financial incentives for upgrading the energy efficiency of their houses, and (d) uninterrupted supply of electricity, during critical periods for those vulnerable consumers that continuous power supply is essential for reasons related to their health.  Grant Scheme for the insulation of the roofs in the residential sector  Grant Scheme for conducting energy audits in SMEs  Establishment of a new energy efficiency revolving fund /soft loan Financing Instrument to promote investments in the fields of Energy Efficiency and Renewable Energy Sources, targeting small and medium-sized enterprises, public bodies and households (managed by the

EIB, state’s financial contribution € 40 million for 2019, funding is 85% from the European Commission and 15% of national participation)..  Private financing institutions offer financing for energy efficiency investments, such as the energy loans for thermal insulation, for energy efficiency upgrade of buildings etc.  In the framework of two new Interregional European programs between Cyprus and Greece (SYNERGEIN and STRATENERGY), 11 buildings in municipalities and wider public will be energy upgraded in the period 2018-2020.  Targeted energy efficiency measures in public buildings  Establishment of an energy efficiency network with voluntary agreements with businesses  Financing measures for energy efficiency investments in existing hotels  Financing measures in agriculture  Targeted measures in transportation and Integrated Fleet Management Systems  street lighting projects-replacing existing lamps / lighting fixtures in road lighting systems with new, more efficient ones  Incentives for new buildings with higher energy efficiency than EPBD requirements- new buildings and buildings renovated can receive a 5% extra building factor if they achieve higher energy efficiency than the minimum mandatory levels provided by the legislation  Reduced VAT for energy efficiency retrofits of households - applying a lower VAT rate (5 %), instead of 19 %, for renovation and repair works carried out in existing private dwellings. The lower rate is used, inter alia, for works consisting in applying thermal insulation on the external envelope and replacing external door and window frames.  Targeted energy efficiency measures at schools  Increasing tax on electricity consumption for energy efficiency and renewables  For the transport sector: measures to increase the use of a bicycle, to increase the use of public transportation, integrated fleet management system in governmental fleet, training and information on eco-driving etc.  Excise duty on vehicles with a view to reducing CO2 emissions. This measure  relates to the tax imposed on vehicles with a view to reducing CO2 emissions

Policies and measures for period 2021-2030

An In-Depth Assessment of the Energy Efficiency Potential in Cyprus has been conducted in the framework of a Technical Assistance project for the government of Cyprus and the aim was to assess the maximum theoretical and economically viable energy efficiency potential in Cyprus. A final energy demand forecast model was employed, which was specifically developed for the energy system of Cyprus. The model calculates future annual energy consumption in each major economic sector of Cyprus (agriculture, cement industry, other industry, households, services, road passenger transport, road freight transport and air transport) as a function of future macroeconomic variables and energy prices. It also calculates fuel shares in each sector, depending on technology costs (investment, operation, maintenance and fuel costs), the penetration potential of various technologies and technical constraints for the uptake of new technologies, and allows computing future final energy consumption by sector and fuel. A large part of the input data used in this top-down forecast model was derived from detailed simulations of building energy demand for a number of representative residential and commercial buildings, using the EnergyPlus model. In this way a reconciliation of engineering with economic calculations was achieved. Three distinct scenarios were designed: a reference scenario, which incorporates all policies adopted until early 2016; a ‘realistic scenario’, which assumes the implementation of cost- optimal measures in all economic sectors under a modest deployment of financial resources; and a much more ambitious ‘maximum technical potential scenario’, which assumes an unprecedented mobilization of financial and human resources that could lead to a deep renovation of all existing buildings and a substantial penetration of alternative fuels in transport. After an interval between 2013-2018, where energy use patterns were affected by the significant economic downturn of years 2013-2015, it is projected that overall energy intensity in Cyprus will continue its downward trend in the coming decades, mainly as a result of improved energy performance of buildings in the residential and tertiary sector. Road transport, which currently accounts for 40% of final energy demand, is expected to demonstrate a decline in energy intensity too, but a slower pace since it exhibits great inertia and thus a shift towards more use of public transport modes will take a long time to materialize. In line with the real-world financial and technical capacity of Cyprus, the Realistic Scenario foresees a small or modest improvement in the intensity of energy use. Under this scenario, an assessment of the cost-effectiveness of the different Energy Efficiency interventions is performed in order to illustrate the optimum mix of these interventions. This is done on the basis of their cost efficiency and affected number of end-users as well as to their attractiveness for the end-users and also from a macroeconomic perspective. Overall, the expected expenditure (capital cost), only for energy efficiency interventions for the household and service sector until 2030, in order to meet the targets resulted out of the realistic scenario which is considered as the energy efficiency scenario (additional measures), amount to at least 1 billion € and this is translated to a mean weighted ratio of annual investments at the level of around 0.33% of the estimated GDP over the 2018-2030 period.

To exploit the considerable potentials in the different sectors the main barriers preventing a broader uptake of energy efficiency measures limited financial support on the one hand and interest of final consumers on the other will be adequately addressed in the post 2020 period.

The regulatory framework will be further adjusted in order to establish a secure, consistent and market-oriented framework for energy efficiency interventions mainly targeting the building sector and to a less extent the transport sector. More emphasis will be put on issues related to standardization of energy services provided, the performance of such services and their procurement and operation in the public sector.

It is evident from the analysis provided in the context of this study, that the existing energy saving potential should be approached on a cost- efficient investment basis and to allow, even incentivize, the best performing interventions and instruments to scale-up.

The existing regulatory provisions with regard to the building code, Energy Performance Certificates, as well as energy audits for non-SMEs will be further enhanced in terms of monitoring processes and increased market value in order to create a sustainable regulatory framework for Energy Efficiency. In this context, the enhancement and extension (both also in time) of an obligation scheme for energy suppliers is proposed in order to increase relevance of the foreseen energy efficiency interventions on the market and to allow for the integration of these measures as new market mechanisms under a competitive framework. Though, the structure of the domestic energy market currently does not leave big room for competition among energy suppliers, considering the anticipated changes especially in the electricity market the introduction of such energy efficiency obligations can be expected to foster and accelerate the establishment of a functioning national energy service market.

The low-hanging fruits in terms of energy efficiency interventions still are not fully exploited and further emphasis will be given to awareness, training and information activities that would allow the fairly easily achievement of some significant energy savings.

A balanced mix of mandatory obligations as well as voluntary targets for the various energy consumers and suppliers will be considered. This needs to be done in a way that while going beyond the minimum mandatory instruments currently foreseen under the EED not to create market failures or uneven burden for some end-users or market participants. The instrument of energy audits especially for non-SMEs should be exploited far more in the future in both the service and industry sector and to be directly linked with any kind of state financial support.

Any regulatory market barrier should be addressed as efficient and as fast as possible in order not to witness market bottlenecks or lock-in effects. For this reason, mainly capacity building measures for various stakeholders groups (e.g. building installers, energy managers, lawyers, bankers) will be timely planned and implemented. The introductions of standardized tools and procedures as well as the development of electronic databases, registries and communication platforms are also considered key instruments for the successful tackling of the existing mainly market-related barriers.

However, the most sever barrier for the achievement of the planned savings is the limited available budget for such kind of interventions. The private sector has been accustomed to be responsive only when a significant public subsidy is available, while the public sector tends to request full upfront capital coverage. For this reason, the transition to a more market-oriented financial support scheme will be definitely a challenge and a careful planning along with the mobilization of the appropriate financial and market instruments will be required. Public support will continue to play a vital and indispensable role in the achievement of the targeted energy savings and as such the appropriate new energy efficiency financing instruments will be deployed and be in operation in due course. The aim from the side of the State is not to reduce its overall share in the support of the energy efficiency interventions, but mainly to drive the public financial resources to more cost- efficient support instruments and types of energy efficiency interventions with a higher leverage.

The establishment of a dedicated energy efficiency revolving fund is proposed (soft loans) allowing the sustainable medium-term design of national support schemes for energy efficiency interventions. The success or not of this proposed fund is closely associated with the involvement and cooperation with the domestic banking sector and for this reason the active and direct participation of the latter sector should be thoroughly discussed and ultimately guaranteed before the launch of support programs under this Fund.

In this context the possibility of additional inflows to this fund will be assessed and considered, mainly in the framework of carbon/green taxes, however without jeopardizing the existence of an initial capital for the medium-term fund operation. The capital for the fund operation is overall proposed to be allocated from the national Cohesion and Structural funds.

Benchmarking assessment and analysis in order to support the efficient planning and distribution of public funds is essential and to this end the current data set of specific energy consumption data for various end-use sectors needs to be systematically broadened and detailed. Market surveys and wider participation of market associations in the various national energy efficiency schemes (e.g. voluntary agreements) and exploitation of data collected by the energy managers of the public buildings and the stock of issued energy building certificates in the framework of dedicated Information System databases and platforms are proposed to be one of the first administrative driven actions.

The Government is examining a fiscally neutral green tax reform, which can significantly contribute towards transition to an economically and environmentally sustainable development. A gradual implementation of environmental taxes to sectors (that are not subject to the EU Emissions Trading System) and at the same the reduction of other expenses related e.g. to labour cost, is expected to lead to energy savings and will notable reduce the energy dependency of Cyprus. It is noted that this measure, due to the expected large impact on reducing the national energy consumption, will simultaneously contribute to the achievement of obligations of the country for 2030 regarding energy efficiency, the reduction of the carbon dioxide emissions and the increase of share for renewable energy sources. In general, a fiscally neutral

gradual green tax reform can have substantially positive effects both on environmental and economic performance of a country and enable the transition to a more productive, more resource-efficient and less polluting economy.

In the household/residential sector, while not undermining the acceleration of new building requirements (i.e. deep renovations leading to nZEB consumption), any new instrument will be designed to be cost-attractive as well as implementable in market terms. Programmes with a fast market uptake (i.e. roof insulation, heat pumps, solar thermal) allowing both comprehensive and stand-alone interventions shall be priorities. Linking these types of interventions in the household sector to the proposed Energy Efficiency Obligation Schemes will be considered in order to bridge the regulatory and financial gaps and to allow an upscale of the deemed beneficiaries.

In the service sector targeted sub-sectors for tailored initiatives are proposed to be the tourism and the industry food, diary, tobacco sector, while as far as the public sector is concerned emphasis should be given to hospitals and energy efficiency upgrade of street lighting. Since the latter is primarily under the responsibility of municipalities and communes, targeted schemes would need to be designed to empower and/or support local government to programme, procure and implement such measures, while a priority should again be given to the mobilization of private capital through light energy performance contracting.

Moreover, MECI, with technical assistance from SRSS completed two studies, one by JRC and one by GIZ, which looked into the barriers that hinder the development of the ESCO market in Cyprus. These, given the results of these studies, such as the preparation of template tender studies provide a list of solutions, measures and actions that can be taken in order to overcome these barriers. Targeted and well-designed actions will be taken documents as standard procedures for procuring ESCO projects in public sector. More actions will include capacity building, targeted trainings, information workshops and events for removing barriers that impede the uptake of energy performance contracting and the implementation of energy efficiency investments in general Ministry of Energy, Commerce and Industry is working together with the Department of Spatial Planning and Housing to revise the existing requirements that qualify a building to receive an extra 5% building factor. These requirements are examined to go beyond requirements for NZEB at least for new buildings.

The Directive 2018/844/EU amending Directive 2010/31/EU on energy efficiency of buildings has to be transposed to national legislation by March 2020. As a result, new measures will be implemented in the building sector and onwards. The most notable ones are: g) Setting measurable progress indicators in building renovation h) Integration of electro-mobility infrastructure in build environment i) Smart readiness indicator for buildings j) Promotion of building automation and control systems in heating and cooling systems

As far as concerns the agricultural sector the focus will be mainly given to higher penetration of RES systems for heating and cooling, achieving relative significant savings in terms of primary energy use and avoided cost of imported fuel, while also the adoption and support of an energy audit scheme could allow the identification of some significant cost efficient energy saving potential that could be addressed under tailored design national programmes either for specific sub-sectors (e.g. wineries) or agricultural process activities (e.g. greenhouses, drying). Given the poor knowledge on RES and energy efficiency potentials and technologies along the agricultural value chain all measures will need to be accompanied by awareness raising and training activities.

The transport sector, while exhibits a reference high potential for savings, due to existing and persistent modal shift patterns and overall infrastructure constraints is expected to perform quite modestly in terms of energy savings in the decade up to 2030. Action will focus on modifying the vehicle taxes to accelerate the penetration of higher efficient cars and light commercial vehicles, soft measures to promote a modal shift towards public, e-mobility and other alternative transport modes. To accelerate the uptake of e-mobility public funding the charging infrastructure and/or other regulatory measures for the set-up of charging infrastructure to enable the development of a free and competitive market will be considered, however only after a certain satisfactory level of cost-efficiency for these infrastructure investments is reached.

Finally, using the European Structural and Investment Funds in the new Programming Period 2020 – 2026, under the "Greener low carbon Europe" thematic priority, actions to promote energy efficiency and the use of renewable energy sources will be promoted. It expected that 30% of the resources available from the European Regional Development Fund, which are expected to be 30% of € 225 to € 250 million, should be allocated to the above thematic priority.

iga too rev tio ls SchTra olv n forem ini Energy upgrade of existing ing ng buildings sch the e Minimum fun of energy engfor requirements em on new buildings d es agepropro Household Energy sector fes certificate of mesu buildings Market mechanisms nt mesio nal Figure 3. Overview of policies for the household sector of rs s /

Energy Energy Audits Services Energy upgrade of EE revolving existing fund buildings

Minimum energy Voluntary requirements on schemes new buildings

Energy certificate of Service sector RES heating buildings & and cooling sectoral Market mechanisms surveys

Figure 4. Overview of policies for the service sector

te the En rev sch erg and usa erg olvi em y sup ge y ng es/ Ma fun EE por of Tax regime forAu nag EE interventions t ne dits d Net em wo he w Auto- Industry sector consumption Market ent schemes mechanisms CH tec rks Sch hn Figure 5. Overview of policies for the industry sector P em olo

Integration into EE revolving agricultural fund programmes

Combination Energy Audits with RES

Agricultural Enabling the Capacity sector usage of new building / technologies/ dissemination Market tech. solutions mechanisms

Figure 6. Overview of policies for the agricultural sector

REgulating the operation of e- charing infrastructure Coordinating the Funding of public- creation of a one echaring stop shop for infrastructure alternative fuels

Quality Modification of Policy management and vehicle taxes based measures for awarness raising on energy road camapaign for efficiency transport public transport

Figure 7. Overview of policies for the transport sector

TRANSPORT

In 2016, road transport emissions contributed 23% of the total national emissions excluding LULUCF (Kythreotou and Mesimeris, 2018). The emissions from road transport increased by 68% compared to 1990. According to information from the International Road Federation, Cyprus has the highest car ownership rate in the world with 742 cars per 1,000 people. Other means of transport are very low compared to other countries: 3% public transport and less than 2% bicycle (Ministry of Communications and Public Works, 2010).

In addition to the importance for emissions, transport is an issue of particularly great interest to the society of Cyprus, due to the very large growth of the number of privately owned cars and the associated problems in traffic that are experienced, especially in the capital, Nicosia. Even though many studies have been completed since the 1990s on how to deal with traffic in the urban areas of Cyprus and especially Nicosia, only recently action has been taken and measures are being implemented.

Policies and measures that have already been adopted and are planned aim to reduce the energy consumption of road transport sector contributing to the achievement of the indicative national energy efficiency target and the long-term union greenhouse gas emissions commitments consistent with Paris Agreement. One of the main efforts is to decrease the modal share of vehicles by 30%, increase the modal share for the public transport trips by 20% and of pedestrians and cyclists by 20%, expecting to lead to more than 10% reduction of the consumption of energy from road transport sector by 2030. The adoption of appropriate measures has led to the increase of the use of energy efficient vehicles and vehicles with low or zero GHG emissions, although there is still significant potential for energy efficiency improvement of the sector. The deployment on alternative fuels infrastructure will contribute to the penetration of alternative fuels in transport sector, especially alternative fuels with low or zero GHG emissions. Another target is the share of renewables to the energy consumption of road transport sector to be at least 10% by 2020, contributing to the GHG reduction and the diversification of energy mix of the transport sector. This target is continuing after 2020 and becoming stricter for 2030.

Policies and Measures

The energy intensity in the transport sector is among the highest in the EU, mainly due to the large percentage of road transport operations. However, there has been a remarkable improvement in this sector in recent years. The increase of the energy efficiency of private vehicles and the import of smaller and more efficient cars have led to better results although public transport in Cyprus is not adequately developed. The transport sector, along with the electricity generation and building sectors, is one of those sectors that offer a significant potential for energy efficiency improvement.

Actions such as improvement of infrastructure for further encouragement of use of public transport, cycling and walking and financial incentives to encourage new vehicles with low or zero emissions and discourage the use of vehicles with high emissions, can reduce the emissions of one of the most important sectors in Cyprus.

In particular, the increase of the modal share for the bus trips to 20% and the modal share of pedestrians and cyclists to 20% by 2030, will be achieved by the development and implementation of measures, such as high quality public transport services, zero or near zero emission zones, improvement of cycling and pedestrian facilities, effective parking policy, measures to promote the use of sustainable modes of transport and discouragement of the use of the passenger car and introduction of a tram system in Nicosia. Furthermore, the possibility of setting up a railway system linking the main urban areas should be further exploited.

According to the 2013 (Amending) Law on Motor Vehicles and Road Traffic, which entered into force on 1 January 2014, the annual circulation tax for each category M1 motor vehicle and the annual circulation tax for each category N1 motor vehicle, resulting from a category M1 motor vehicle and classified under the category of light lorry (VAN type), is calculated on the basis of the carbon dioxide

emissions of the vehicle. In addition, as from 1 January 2014, category N2 and N3 vehicles (Lorries) and M2 and M3 vehicles (buses) are registered in so far as they have been proven to comply with the ‘EURO VI’ requirements on the emission of pollutants.

A revision of the vehicle taxes and annual circulation taxes in order to promote the further use of low emission vehicles, including zero emissions vehicles (ZLEVs) has been prepared by amending the Motor Vehicles and Road Traffic Law. The proposed legislation is expected to enter into force in the first quarter of 2019.

The launch of the 4th Old Vehicle Scrapping and Replacement Scheme was announced on 11th of October 2010, whereas the scheme was implemented in 2011. Applications were admitted for a period of 2 months with final date on 13th of December 2010. The 4th Scheme related to the payment of a grant equal to EUR 1 800 and covered the scrapping of M1 category motor vehicles, older than 15 years old, under the condition that a new car with CO2 mass emissions lower or equal to 165gr/km would be purchased.

The new public transportation system was put into force in the second half of 2010. The new bus operators replaced part of their vehicles with new ones that have low fuel consumption and pollutant emissions, as compared to the old vehicles that were replaced. The Ministry of Transport, Communications and Works has recently installed a telematics system that manages the bus services and records data for further optimization of the Public transport system. The related website and mobile application contain a detailed map of the routes and the timetable of buses in order to facilitate passengers in real time.

New bus concessions are planned to be put in force in 2020 and will further improve the public transportation system. The increase of the use of buses that have low or zero GHG emissions will be implemented by applying the following:

• Additional Cost for the Tenderer to convert their bus fleet to Compressed Natural Gas (CNG), when such fuel source is available in Cyprus and the prerequisites for doing so exist. • Additional Cost for the Tenderer to provide Electric Buses (maximum capacity 22 persons) in Historic City Centres of Nicosia, Limassol, Larnaca, Paphos and Famagusta (Paralimni & Agia Napa). • The tenderer may submit a variant to their standard offer (of 10-year contract period), showing amortisation over a longer period – not exceeding 15years – for supplying a fleet with vehicles (buses) operating with electric energy, which are more expensive than the usual diesel buses, and will require further significant investments on charging stations in depots and key locations, but contribute towards a cleaner environment. To consider such a variant, all vehicles shall be electric and the tenderer will carry out a detailed feasibility study taking into account all costs (including vehicle and infrastructure cost).

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The introduction of environmental fees for the use of the road network by 2030 is a revenue generating measure that will discourage the use of cars and also provide a source of funding for implementing the other proposed measures. This measure will be implemented by actions, such as applying congestion charges in the city centers, toll charges applied initially to HGV on Motorways to be extended later to other roads and vehicle types, increasing the taxes for fossil fuels and increasing the parking charges and penalties for illegal parking.

The enhanced planting of trees along streets and strategic road corridors is another measure that reduces the CO2 amount of the atmosphere. Benefits include shading, ambient temperature reduction, CO2 absorption (up to 22 000 tonnes/year), and better conditions for walking and cycling.

In the context of the implementation of EU Regulation (EC) No 1222/2009 on the labelling of tires with respect to fuel efficiency and other essential parameters, delegated inspectors of the Energy Department perform market surveillance checks in order to identify cases of non- compliance with these provisions. In addition, presentations on energy savings in the transport sector and on eco-driving are made in the context of the seminars addressed to unemployed engineers of all specialisations organised by the Energy Department and the Productivity Centre, with the support of the Human Resources Development Authority of Cyprus.

Sectoral policies and measures: Industry

The New EU F-gas Regulation adopted in 2014 and applies from 1 January 2015, aims among others in preventing emissions of F-gases from existing equipment by requiring leakage checks, proper serving and recovery of the gases at the end of the equipment's life. For the full implementation of this regulation in Cyprus a proper recovery system needs to be setup and used in Cyprus. Given the high GWP of the F- gases, and their increasing contribution to the national emissions, it is considered crucial for proper recovery to be implemented within the following years.

Under the provisions of Art. 9 of Regulation 517/2014/EC, on fluorinated greenhouse gases, without prejudice to existing Union legislation, Member States shall encourage the development of producer responsibility schemes for the recovery of fluorinated greenhouse gases and their recycling, reclamation or destruction. Cyprus has recently adopted and harmonized the above Regulation into Cypriot Law 62(I)/2016 and 46(I)/2017. The next step is to forward a national Law regarding a producer’s responsibility scheme. The main provision of this Law will follow the “polluter pays” principle and each producer will have to participate in an appropriate scheme for management of f-gases that have been recovered for any reason.

At the same time, under the provisions of the same scheme, certified technicians will be encouraged to return to the scheme any fluorinated gases the have recovered, for a pre-decided profit.

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Competent authority Department of Environment, Ministry of Agriculture, Rural Development and Environment Other involved authorities -

Type Legislative, compulsory National legislation Fluorinated greenhouse gases Law (No. 62(I)/2016 and 46(I)/2017) Relevant EU legislation Regulation on fluorinated greenhouse gases 517/2014 Measures towards attainment - Implementation of “polluter pays” principle; each producer will have to participate in an appropriate scheme for management of f-gases that have been recovered

Sectoral policies and measures: Agriculture

Anaerobic digestion technology may help to address two congressional concerns that have some measure of interdependence: development of clean energy sources and reduction of greenhouse gas emissions. Anaerobic digestion, as a way of converting biomass to energy, has been practiced for hundreds of years. It is a technology that helps to reduce waste, generate energy and cut down on carbon emissions. The general performance of anaerobic digesters and the diversity of wastes which they can treat have been increasing steadily as a result of new reactor design, operating conditions, or the use of specialised microbial consortia, during the last decades. In Cyprus there are currently operating more than 10 anaerobic digesters, of which the majority is at large animal farms. All available studies show that there is a great potential in Cyprus to further promote anaerobic digestion for the treatment of waste with high organic content.

Even though anaerobic digestion is not clearly stated in the European or national legislation, the technology is preferred by large animal farms to comply with the terms stated on the wastewater and air emissions permits. The technology is strongly promoted by the Department of Environment, especially for the large installations that fall under the Industrial Emissions directive. Relevant national legislation that encourages the promotion of anaerobic digestion is (a) the Control of Water Pollution (Waste Water Disposal) Regulations 2003, RAA 772/2003; (b) the Control of Water Pollution (Sensitive Areas for urban waste water discharges) RAA 111/2004. It is a voluntary measure

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which is expected to increase. Therefore it is considered important to further promote the use of anaerobic digestion for the treatment of animal waste.

Sectoral policies and measures: Waste

With the EU Landfill Directive being the main guiding force, in combination to the improvement of the infrastructure of the country, Cyprus has developed and implementing during the recent years the National Municipal Waste Management Plan of 2015-2021 which is currently undergoing a major revision10. The implementation of the strategy is the responsibility of the Department of Environment.

The National Municipal Waste Management Plan of 2015-2021 (MWMP) contains quantitative and qualitative targets and enumerates specific measures and actions to be taken in order for the EU targets to be reached. One of the quantitative target is that no more than 95,000 tonnes of biodegradable waste to be disposed in landfills (represents the 35% target of the 1999/31/EC directive). Also the Legal Measures will be focused on the:

- Development of local waste prevention and management schemes - Mandatory obligation for establishing separate collection systems by local authorities, - Establishment of extended producer responsibility (EPR) in streams other than packaging waste, - Establishment of a landfill tax/levy, - Banning the disposal of certain waste streams from entering into landfills (e.g. green waste, high calorific value waste, etc.)

The adaptations of the strategy that are envisaged: a) One Sanitary Landfill and one Residual Sanitary Landfill (supplementing MBT unit at Koshi) were constructed and operated (both meet the requirements of directive 99/31/EC). The MBT unit was constructed and operated from 01/04/2010 serving Larnaca - Ammochostos districts. The Plant was designed in a way that a high separation of recycled and biodegradable material is achieved. Another I.W.M.P (Integrated Waste Management Plant) serving Limassol district is expected to be operated by the year 2018. b) The construction of the Green Point Network (22 collection points for the depositing of various waste streams out of households – bulky waste, green, textile, furniture, WEEE, etc.) is competed. The 4 Green Points, serving Paphos district are operated and the rest expected to be operated by 2018.

10 The final plan is expected to be available at the end of 2019

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c) Separate collection at source was promoted at households, from the existing collective system for the packing waste serving also and all types of paper, created under the packaging directive while the competent authority promotes the separate collection from other household streams such as other organic waste e.g. food and green waste. d) The construction works for the rehabilitation/restoration of the old non approved landfills, which are closed at Paphos and Larnaca - Ammochostos districts, were completed. The preparation of studies/documents regarding the rehabilitation/ restoration of the 20 non sanitary landfills of Nicosia district and the 44 sanitary landfills of Limassol district will be completed within 2018 and after that the construction works will begin.

A comprehensive study was undertaken in 2005 for the elaboration of a Strategic Plan, an Environmental study and a Feasibility study for the restoration and management of landfills. The purpose of the study was to record all landfills, assess their status and level of risk, create a restoration priority list based on pollution risk assessments, and undertake the appropriate environmental studies as well as feasibility studies for the restoration of the prioritised landfills. These studies were a necessary step for the restoration of all landfills recorded.

Two (2) landfills are still active in Cyprus but arrangements are made in order to be closed and restored. According to recent data, these two landfills are fed with approximately 155,000 ton and 200,000 ton of municipality waste each year respectively (reference year 2012).

Sixty two (62) non sanitary landfills are planned to be restored appropriately within the following years. According to the preliminary study contacted in 2005, these landfills contain approximately 597,269 m3 of solid waste excluding 2 major landfills that have not been closed yet.

Fifty three (53) landfills have been restored the last five years and are being monitored. During their restoration a total of 4,902,000 m3 of solid waste were reallocated and properly buried using composite liners and leakage collection systems.

The key features of the strategy that have been included in the GHG reduction Policies and Measures are the following: - Reduction of waste to solid waste disposal sites from sorting at production level - Reduction of organics to landfills - Increase of amount of organic wastes treated by composting - Promotion of anaerobic digestion for the treatment of the organic fraction of the municipal solid waste

An additional measure considered and not included in the solid waste management strategy is biogas recovery from old landfills, during their restoration.

Sectoral policies and measures: Forests

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The island has already been affected by climate change and consequently the forests suffer by the prolonged droughts which put the forest ecosystem under serious water stress and high fire risk.

The Department of Forests adopts and applies actions aiming to the adaptation of forest stands (natural and artificial) to climate change. The strategic intention "Protection of the environment and promotion of resource efficiency” is achieved through the protection of forests from fires, overgrazing, human interventions and other biotic and abiotic factors that affect them. Additionally, these actions contribute to the reduction of greenhouse gas emissions and increase carbon sequestration. These actions can be grouped into three main areas as listed in the Statement of Forest Policy: b) Protecting forests against forest fires, c) Adaptation of forests to climate change and enhancing the contribution of forests in addressing climate change and improvement of main forests and forested areas, d) Improvement and expansion of forests.

The above actions include the following measures: a) Maintenance and improvement of biodiversity in forests. In particular, the conservation of biodiversity is enhanced by the protection of flora and fauna and the protection and restoration of their habitats, b) Protection of forests from illegal logging: The implementation of Law 139 (I) / 2013 acts as a tool to control most of the available firewood locally and apply criminal penalties for any illegal or uncontrolled logging and / or disposal of the local timber market without authorization, c) Reforestation of Amiantos (asbestos) Mine as well as restoration of abandoned mines in cooperation with the Competent Authorities (the Department of Geological Survey and the Mines Service), d) Protection of forests and enhancement of their structure and resistance to climate change through the Rural Development Program 2014 – 2020.

In particular, through the Rural Development Program 2014 - 2020, a number of activities and actions have been promoted under Measure 8 (Investments in forest area development and improvement of the viability of forests). The Action 8.5.3 includes thinning operations in dense forest stands, with the purpose of improving the structure of forests, the adaptation of forest stands to climate change, the reduction of emissions and increase the absorption of greenhouse gases. The implementation of targeted thinning is expected to improve stability and resilience to other disturbances, such as drought, increase of temperature and prolonged heat waves (as a result of climate change).

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Additionally the Department of Forests participates in European and International co-funded projects (LIFE+, Interreg etc.) which aim to protect threatened species and ecosystems from the impacts of climate change and succeed their adaptation and sustainable management.

Information on planned additional national policies and measures envisaged with a view to limiting greenhouse gas emissions beyond Cyprus’ commitments under Decision 406/2009/EC and in view of the implementation of an international agreement on climate change (MMR Art. 13(1)(d))

There are no planned additional national policies and measures envisaged with a view to limiting greenhouse gas emissions beyond Cyprus’ commitments under Decision 406/2009/EC.

Information on the extent to which the Cyprus’ action constitutes a significant element of the efforts undertaken at national level as well as the extent to which the projected use of joint implementation, of the CDM and of international emissions trading is supplemental to domestic action in accordance with the relevant provisions of the Kyoto Protocol and the decisions adopted thereunder (MMR Art. 13(1)(e))

Cyprus does not intend to use joint implementation (JI), the clean development mechanism (CDM) and international emissions trading (IET) under the Kyoto Protocol (the Kyoto mechanisms) to meet its quantified limitation or reduction commitment pursuant to the Kyoto Protocol - in meeting the 2013-2020 targets.

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Appendix II. Existing and additional policies and measures (summary tables in Greek)

I.1. Renewable Energy Sources Scenario: ‘With existing measures’

SectorUnit (e.g. Timeline of Expenditure Expected Notes Renewable implementation Investment costs Government decrease in Energy (EUR) contribution greenhouse Sources - RES) (EUR) gas emissions 1 Renewable Electricity 2021-2030 € 528.2 million new investments 16.62 Μtones ETS Energy Sources including operating costs and reasonable CO2 (Emissions (RES) profit for investments. The amount of the cumulatively Trading government contribution has not been 2021-2030 or Scheme) determined. 1.57 Mtones sector total CO2 emissions not to 2030 reduction 2 Renewable Heating/cooling 2021-2030 € 408 million new investrments including 60.62 PJ Energy Sources operating costs and reasonable profit/depreciation for investments. The amount of the government contribution has not been determined.

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I.2. Energy Efficiency Scenario: ‘With existing measures’11

UnitSector Timeline of Expenditure Expected decrease Notes implementation Investment costs (EUR) Governmen in greenhouse gas t emissions12 contribution (EUR) Energy Residential sector 2019-2023 40-80 million cost of new ES investments The amount will be Savings Services sector provided as low-interest (ES) Industrial and loans through DG Agricultural Sector EPSA’s financial lending instrument (2014-2020 Partial contribution Structural Funds). There to achieving the is no estimate for the mandatory ES target expected absorption of for the 2021-2030 ES investments. Energy Services sector 2018-2030 Enterprise network for Not end-use period, Commitment by more Savings Industrial sector energy efficiency - voluntary applicable which is expected to than 250 enterprises (not (ES) partnership/commitments be 235 000-238 000 participating in the made by undertakings to toe (cumulatively) Emissions Trading reduce their greenhouse Scheme). There is no gas emissions by more than estimate for the 8 % by 2030 by taking expected implementation actions to reduce energy of ES investments. and resource consumption, such as improving energy performance, RES etc. The investment cost has not yet

11 According to the Regulation on Governance, ‘projections with measures’ concern measures and policies that have been adopted and implemented. 12 All measures also contribute to the indicative Energy Savings (ES) targets that Cyprus may set and calculated as a ‘reduction of the primary energy consumption by 9.5 % in 2030, in relation to the corresponding EU forecast for Cyprus in 2007 (PRIMES REFERENCE SCENARIO 2007)’. The relevant European Directives (energy performance of buildings, energy labelling etc.) also contribute to achieving the indicative target. For the obligatory end-use energy savings target, it is not permitted to consider savings from the implementation of the applicable European acquis.

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UnitSector Timeline of Expenditure Expected decrease Notes implementation been calculated. in greenhouse gas Energy Services sector 2018-2030 € 20 million cost of new Not emissions12 Promotion of high- Savings Industrial sector investments for the applicable performance heat and (ES) installation of high- power cogeneration units performance heat and through the clearance of power cogeneration units accounts method. Energy Services sector 2019-2021 € 1.2 million cost of new € 1.2 - co- Pilot installation of two Savings investments for the financed by high-performance heat (ES) installation of high- the structural and power cogeneration performance heat and funds (2014- units power cogeneration units 2020 Structral Funds). Energy Residential sector 2019-2030 1.5 million for information € 150 000 Conduct of annual Savings Services sector campaigns per year. communcation campaign (ES) Industrial Sector, using resources from the Transport Sector budget of the Ministry of Energy, Commerce, Industry and Tourism. Small contribution to ES targets. Supports financial and other incentives/measures. Energy Residential sector, 2016-2030 Additional ES investments, Not Development incentive Savings Services sector mainly in new appartment applicable for increasing the plot (ES) buildings and hotels that go ratio for buildings, beyond the minimum provided that they have requirements laid down by a level of energy the Law. The investment efficiency that is higher cost has not yet been than the minimum calculated. requirements laid down by the Law. Energy Residential sector, 2016-2030 Reduced VAT rate for Not There is not considered Savings Services sector energy upgrading work in applicable to be a large

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UnitSector Timeline of Expenditure Expected decrease Notes (ES) implementation existing buildings. The in greenhouse gas contribution. Energy investment cost has not yet emissions12 upgrade investments are been calculated. made when there is a subsidy scheme. Energy Industrial sector 2020-2030 Increase in performance of Substantial Does not contribute to Savings power plants due to the use contribution to the the mandatory end-use (ES) of natural gas instead of oil. ‘reduction of the energy savings target, primary energy but is only an indication consumption by which concerns the 9.5 % in 2030 in reduction of the primary relation to the energy consumption. corresponding EU forecast for Cyprus in 2007 (PRIMES REFERENCE SCENARIO 2007)

Existing policies and measures:

 Plans to support Combined Heat and Power systems  Save and upgrade scheme for residential buildings and businesses.  Energy savings measures in public buildings  Trainings, information campaigns and targeted information measures  Energy efficiency obligation scheme for energy distributors  Climate cooperation network and energy performance of business-voluntary agreements  Financial incentives for energy inspections at companies  Financial incentives for thermal insulation in roofs and homes  Financial instruments through banks for energy savings in enterprises (EPSA, strucural funds, 2014-2020 period)  Reduced VAT rate for energy renovations in residential buildings  Development incentive for new buildings with higher energy efficiency.  Plans that include the promotion of energy savings investments in hotels (Cyprus Tourism Organisation - CTO)

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 Plans that include the promotion of energy savings investments in the agricultural sector (Department of Agriculture, Cyprus Land Development Corporation)  Replacement of solar systems with new, more efficient ones  Projects to replace the bulbs used in street lighting  Energy savings measures for State vehicles  Excise duty on vehicles for the reduction of CO2 emissions  Implementation of minimum energy efficiency requirements for new buildings, as provided for by the relevant EU and national laws.  Further increase in efficiency during generation due to the use of natural gas.

Planned policies and measures:

 New financial programmes for promoting energy efficiency through the 2021-2026 Structural Funds  Revision of development incentive for new buildings with higher energy efficiency.  Targeted measures to remove obstacles for the implementation of energy projects through energy service providers  Increase in information campaigns  New grant schemens or tax measures to promote total energy upgrades, individual Energy Savings (ES) and small-scale RES investments in private and public buildings, industry and agriculture.  New energy efficiency obligations for energy distributors  Further strengthening the climate cooperation network and energy performance of business-voluntary agreements Increasing efficiency of energy infrastructure.

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I.3. Transport Scenario: ‘With measures’

Transport Unit13 Timeline of Expenditure Expected Notes sector implementation Investment Government decrease in costs (EUR) contribution greenhouse (EUR) gas emissions 1 Amendment to the calculation Estimate paramaters for currently not road tax in order possible (in light Estimated start - Concerns income Vehicle taxes to favour low - - of the market's 1st quarter 2019 and not expenditure emmission reaction to the vehicles to be vehicle fleet registered for the renewal) first time 2 Promoting the Installation of ten End 2019 1 000 000 150 000 use of electricity double fast- for transport charging stations accessible to the public on major roads 3 Promoting the Mandatory From 2011 6 000 000 0 34 000 tones The increased cost use of RES for addition of onwards CO2 eq resulting from the transport biofuels to road increased price of transport fuels to biofuels compared achieve the to diesel is paid by 2.4 % RES target the consumer. The State has additional income from VAT.

13 Request as summary of the measures

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I.4. Waste, Agriculture and Fluorinated greenhouse gases Scenario: ‘With existing measures’

SectorUnit Timeline of Expenditure Expected Notes implementation Investment Government decrease in costs (EUR) contribution greenhouse gas (EUR) emissions 1 Industry Refrigerant As from 2020 20 million 2 million 88 million t of CO2 gasses equivalent 2 Agriculture Management of As from 2020 10 million 4 million 178 million t of CO2 livestock waste equivalent from existing plants 3 Waste Sorting at source As from 2021 110 million 65 million 478 million t of CO2 - reduction of equivalent waste generation Recycling As from 2021 716 million t of CO2 equivalent Promoting As from 2021 13 million t of CO2 anaerobic equivalent digestion for processing urban solid waste Extracting biogas As from 2021 939 million t of CO2 from old waste equivalent disposal sites

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