The upcoming carbon tax in Cyprus, set to take effect in 2024, will have a significant impact on taxpayers, coinciding with high electricity bills from carbon emissions allowances. Costs are projected to increase from €300 million to potentially €500 million, presenting a substantial financial challenge for residents and businesses while aiming to reduce the island’s carbon footprint. The government’s environmental policies and the implementation of the carbon tax will shape the financial landscape for individuals and businesses, with the potential to impact the broader goals of sustainability and economic stability in the long term.