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Cyprus Hits Record Greenhouse Gas Levels: Urgent Action Needed

Greenhouse gas (GHG) concentrations over Cyprus have soared to record highs, with carbon dioxide (CO₂) levels surpassing 430 parts per million (ppm) for the first time in January 2025. These findings come from a five-year continuous monitoring initiative led by the Cyprus Institute’s Climate and Atmosphere Research Centre (CARE-C), revealing an alarming upward trend in emissions across the region.

A Climate Hotspot Under Pressure

Cyprus sits at the crossroads of Europe, the Middle East, and North Africa—an area already identified as a global climate change hotspot. Rising greenhouse gas levels exacerbate the region’s vulnerability, fueling extreme weather, desertification, and declining air quality. Yet, until recently, high-precision monitoring of these emissions in the Eastern Mediterranean and Middle East (EMME) region has been limited, leaving a significant gap in global climate data.

To address this, CARE-C, in collaboration with France’s Climate and Environment Sciences Laboratory (LSCE) and Germany’s University of Bremen, established an advanced monitoring network. Their research highlights that Cyprus is directly impacted by continental airflows carrying emissions from across Europe, further compounding local pollution sources.

The Science Behind The Surge

GHGs act as a thermal blanket, regulating Earth’s temperature at an average of 15°C. However, unchecked emissions from fossil fuel combustion, transportation, agriculture, and industrial activity are disrupting this balance, accelerating global warming. The consequences are already being felt worldwide: rising temperatures, severe weather events, and environmental degradation.

In Cyprus, electricity production is the largest contributor to GHG emissions, followed closely by the transport sector. Industrial activities, construction, waste management, and livestock farming also play significant roles. These emissions not only fuel climate change but also have direct consequences on human health—according to a joint study by the Max Planck Institute for Chemistry and the Cyprus Institute, extreme heat already claims 1.6 million lives annually, a number that could rise to 30 million by the century’s end.

Policy, Innovation, And The Path Forward

With GHG concentrations reaching unprecedented levels, long-term data collection is critical to shaping effective climate policies. Cyprus Environment Commissioner Antonia Theodosiou emphasized the urgency of transitioning to sustainable energy and climate-neutral strategies. Speaking at the Climate Neutral Municipality of Athienou, she highlighted initiatives like communal energy autonomy and sustainable waste management as crucial steps forward.

The government’s National Energy and Climate Plan (NESCP) aims to drive these efforts, with projects such as transforming Tillyria into a climate-neutral community already in motion. Meanwhile, the Cyprus Institute’s monitoring stations in Nicosia (Aglandjia) and Paphos (Ineia) continue to provide real-time data, serving as a foundation for future mitigation strategies.

The Bottom Line

The record-breaking GHG levels over Cyprus serve as a stark reminder: climate action can no longer be delayed. The island’s position in the EMME region makes it particularly vulnerable, but with decisive policies and innovation, it has the opportunity to lead by example. The data is clear—now, the challenge lies in turning these insights into impactful solutions.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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