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European Commission Seeks Refund From Cyprus Over Vasiliko LNG Project Funding

by THEFUTURE.TEAM

July 29, 2024

In a significant financial and political development, the European Commission (EC) has demanded a refund of €68.6 million from Cyprus, a sum previously allocated for the Vasiliko liquefied natural gas (LNG) terminal project. The EC’s claim follows concerns over irregularities during the tender evaluation process and subsequent contract awarding to a consortium.

Irregularities and Contract Issues

The EC’s request centers around two primary violations: first, the criteria used in awarding the tender to the consortium comprising China Petroleum Pipeline Engineering Co. Ltd., Metron Energy Applications S.A., Hudong-Zhonghua Shipbuilding (Group) Co. Limited, and Wilhelmsen Ship Management Limited in December 2019. Second, issues arose with the signing of a bilateral agreement following an additional €25 million funding approval in June 2022.

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Government Response and Investigation

The Ministry of Energy, Commerce and Industry has acknowledged the EC’s concerns and is preparing to respond within the stipulated 30-day period. The ministry stressed its commitment to defending Cyprus’s interests and is cooperating fully with European authorities to investigate the matter. The government has pledged “zero tolerance” for any procedural lapses and is focused on completing the Vasiliko project.

Broader Implications

The Vasiliko LNG terminal, part of the Cyprus Gas 2 EU project, is a Project of Common Interest and has received significant European funding totalling €101 million. The project’s completion is crucial for Cyprus’s energy infrastructure and its alignment with EU energy goals.

This development underscores the importance of adherence to EU regulations and transparency in large-scale public projects. It also highlights the financial and operational risks associated with non-compliance, which can lead to substantial financial repercussions and potential delays in critical infrastructure projects.

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AI’s Economic Benefits Surpass Emissions Concerns According to IMF

by News Editor

April 27, 2025

The International Monetary Fund (IMF) has recently highlighted the potential economic benefits of artificial intelligence (AI), projecting a global output boost of approximately 0.5% per year from 2025 to 2030. This growth is expected to surpass the environmental costs associated with higher carbon emissions from AI-driven data centers.

The report, showcased at the IMF’s spring meeting, emphasizes the need for equitable distribution of these economic gains while managing the adverse effects on our climate. The forecast indicates that AI’s contribution to GDP growth will outweigh the financial impacts of emissions, though it points out the necessity for policymakers and businesses to mitigate societal costs.

Energy Demands and Environmental Footprint

AI is set to escalate global electricity demand, potentially reaching 1,500 terawatt-hours (TWh) by 2030, mirroring the energy consumption of countries like India today.

The increasing demand for data processing capacity could result in higher greenhouse gas emissions, but the AI industry aims to offset these with advancements in renewable energy technologies.

AI: A Driver for Energy Efficiency?

Analysts suggest that AI could potentially reduce carbon emissions through improved energy efficiency, fostering advancements in low-carbon technologies across sectors such as power, food, and transport. Grantham Research Institute stresses the significance of strategic action from governments and industries to facilitate this transition.

The role of AI in the global economy continues to evolve, stirring debates not only about its economic potential but also its environmental impact.