Cyprus is facing challenges with implementing environmental taxation, including concerns over high costs and fairness. The country is also struggling to transition to solar energy and electric vehicles due to limitations with its power grid. Balancing these issues with public opinion and technological readiness will be crucial in shaping Cyprus’s environmental roadmap.
1) carbon tax
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.