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Cyprus to Allocate €1.2 Billion for Co-Financed Projects Over the Next Three Years

by THEFUTURE.TEAM

September 25, 2024

The government of Cyprus has announced plans to allocate €1.2 billion for co-financed projects over the next three years. These projects, supported in collaboration with the European Union, are aimed at promoting economic growth, modernising infrastructure, and fostering sustainability across key sectors of the Cypriot economy.

This funding aligns with Cyprus’ strategic goals, particularly in driving green development, digital transformation, and social welfare improvements. The projects will draw from EU financial instruments such as the Recovery and Resilience Facility (RRF) and the Cohesion Fund to help member states meet their economic and environmental targets.

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Distribution of Funds Across Ministries

Ministry of Transport, Communications, and Works: A significant portion of the funds will be directed toward improving Cyprus’ infrastructure. Investments will focus on upgrading the road network, enhancing public transportation, and modernising ports and airports to boost trade and connectivity. Additionally, there will be a strong emphasis on sustainable transport solutions, including infrastructure for electric vehicles and the adoption of smart transportation technologies to reduce carbon emissions and enhance efficiency.
Ministry of Energy, Commerce, and Industry: As Cyprus continues its shift towards renewable energy, this ministry will benefit from substantial funds to expand renewable energy capacity, particularly solar and wind projects. The investments will also support energy efficiency initiatives across industries and the public sector, accelerating Cyprus’ decarbonisation efforts. By reducing reliance on fossil fuels, Cyprus is working to meet its EU climate commitments and strengthen its energy security.
Ministry of Education, Culture, Sport, and Youth: Co-financed projects will focus on modernising educational infrastructure and expanding digital learning platforms. The aim is to prepare students for the digital economy through improved access to technology and innovative learning tools. Investments will also support research and innovation, fostering a culture of creativity and preparing youth for future economic challenges. In the cultural and sports sectors, funds will be allocated to enhancing facilities and promoting social inclusion through cultural and athletic initiatives.
Ministry of Agriculture, Rural Development, and Environment: A portion of the budget will be dedicated to sustainable agricultural practices, water management, and environmental protection. Projects in this ministry will aim to enhance biodiversity, reduce environmental degradation, and support the country’s transition to greener, more sustainable farming methods.
Ministry of Labour, Welfare, and Social Insurance: This ministry will focus on social welfare improvements, including expanding healthcare services, and social housing, and providing more robust support for vulnerable populations. These projects aim to ensure that economic growth benefits are distributed equitably across society.

Cyprus’ €1.2 billion allocation for co-financed projects highlights the government’s commitment to sustainability, economic growth, and social development.

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Industry Uproar Over Reduction in Electric Vehicle Subsidies

by News Editor

April 26, 2025

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.