Cyprus

Public consultation quality

Two public online consultations have been held. In both cases, the scope of the consultation was very narrow with the public documents only making vague and broad references to the measures that will be included. There haven't been any broad, open and transparent in-person consultations. 

Cross-ministerial coordination & participation of social ministries

There is not enough information at this stage. 

Stakeholder consultation scope

The draft nature of the two consultations made it impossible to provide meaningful and detailed feedback on specific measures and investments. 

Consultation timing

Both online consultations were open between 2-3 weeks. Participants did not have a meaningful opportunity to influence the content of the measures. 

Stakeholder representation

The two general online consultations had a broad targeting. There haven't been efforts to include specific groups, and in particular vulnerable households and enterprises.  

Stakeholder feedback integration

Many of the civil society proposals tabled during the targeted stakeholder consultations were not taken into account in the draft Plan. This includes proposals around supporting energy communities, and deep renovations of buildings prioritising worst performing buildings.

Arrangement to set up a standing consultation/monitoring body for the Plan

This issue to set up a permanent monitoring committee to ensure transparency in the Plan's implementation was brought up repeatedly by civil society during both of the consultations. The drafting authorities have not yet committed to such a measure. 

Involvement of Local Authorities

Local authorities were not adequately involved or consulted during the preparations of the Plan. 

Energy poverty definition

The Cypriot Plan does not make any references to national or EU legislation considering the definition of an energy/transport vulnerable household or micro-enterprises. 

On a positive note, many of the measures list a matrix of economic, social, and geographic criteria to define eligibility (e.g., large families, single parent households, people living in remote areas with scarce public transport, young people, pensioners etc.). 

Effective targeting of vulnerable households

Due to the lack of a proper definition on vulnerability, it's hard to assess whether vulnerable households and micro-enterprises will be reached. None of the measures (except Measure 7 on energy communities) include the provision of technical assistance, or the set up of a One Stop Shop. This risks the possibility that vulnerable households (nor the broader public) will become aware of the opportunities that arise from the Social Climate Fund, and that they will not be applying for it. 

Measures addressed to households that are not immediatedly impacted by ETS2

There are no supportive measures for users of non ETS2 fuels (e.g., biomass). 

Pass-on benefit guarantee (100% of benefits reaching vulnerable households)

Measure 1 which includes on-demand-transport for students and the elderly, does not include a guarantee that (private) transport providers will ensure free access to the service (or very low prices). 

Moreover, Measure 4 on the renovation of buildings of vulnerable households, does not guarantee that private landlords will not raise housing prices following a renovation. Moreover, Measure 6 on the creation of new energy efficient buildings includes the potential participation of the private sector, again providing no assurances that there will be strict control on rent.  

Housing sector reforms & investments

There are overall three measures relating to the renovation of households.

• Measure 4 will provide subsidies to vulnerable households to achieve at least 60% energy savings. The measure also references the use of financial instruments, to make the most effective use of a limited budget (e.g., green loans, and guarantees). While some of those schemes, such as on-bill financing, could be suitable for vulnerable households, with the use of strict protections on pricing, overall the support should be in the form of non-repayable grants, covering 100% of the investment costs. Financial instruments can be focused on micro-enterprises, which are currently not eligible in the measure. The measure also does not address the landlord-tenant dilemma, or provide any guarantees against evictions and price increases post-renovation. 
   
• Measure 5 will renovate public buildings, where vulnerable households reside. This will include a 90% grant for targeted renovation measures, such as insulation, changing windows and frames, installing heat pumps, and rooftop PVs. 
   
• Measure 6 will construct new, energy efficient homes. This may include collaborations between the government and the private sector. There are no guarantees that there will be strict rental controls in place. Furthermore, there is no reference to refurbishing existing buildings and putting them in the (controlled) rental market. 

Overall, while the measures are in the right direction, the absence of dedicated awareness raising, technical assistance, and facilitation schemes (e.g., One Stop Shops, energy mentors, house visits), makes it likely that they will not be used by vulnerable households. 

Heating & cooling sector reforms & investments

There is only one investment line (Measure 5) that will support the installation of heat pumps and solar water heaters for vulnerable households. 

According to the Joint Research Center Cyprus ranks as one of the most energy poor countries in European Union, largely stemming from the high needs for cooling. The lack of emphasis on appropriate measures is thus a missed opportunity. 

Measures and investments for energy communities

The Plan foresees one Measure (7) for the support of energy communities. This will provide multi-faceted support, including: 

• Support for vulnerable households, municipal authorities, and micro-enterprises to join energy communities through at least 5-7 pilot communities.
• Creating a system for virtual metering of produced and consumed energy by members of energy communities.
• Facilitating measures for vulnerable households to be able to participate in energy communities, under a cooperative and democratic governance, and with reduced economic costs.
• The set-up of a national One Stop Shop which will provide legal and permitting support, funding, and organise awareness raising campaigns on energy communities. 

To ensure the success of the measure, it's recommended that: pilots are implemented in several municipalities (at least those with over 10,000 inhabitants), the national One Stop Shop also includes local/regional branches to facilitate access, and that the Government coordinates with the Distribution System Operator to reserve grid space and simplify grid connection processes.

Public transport & active mobility

The Plan foresees two relevant measures:

• Measure 1 will provide on-demand public transport for children, young people and the elderly, to be able to access afternoon activities, in a flexible and organised manner. Dedicated awareness raising campaigns will be used to promote the measure. Furthermore, a "Green Transport for Cyprus" label will be created, for the transport organisations that take part in the measure.
• Measure 2 will provide support to municipalities to set up active transport infrastructure, intelligent transport systems, electric mobility infrastructure, as well as Low and Zero Emission Zones. However, the measure currently lacks a) incentives for the retirement of old vehicles, b) special support for vulnerable transport users. 

Furthermore, Measure 3 foresees a social leasing scheme for electric vehicles, targeting both vulnerable households and micro-enterprises. Arguably, without generous grant support, social leasing still remains inaccessible for vulnerable households. Therefore, the measure should primarily focus on micro-enterprises. Lastly, the measure does not mention the scaling up of charging infrastructure, which is often a big gap for (vulnerable) transport users to switch to EVs. 

Vulnerable micro-enterprise support

Micro-enterprises will benefit from two of the above listed measures including: 

• Measure 3 (Social leasing of electric vehicles)
• Measure 7 (Set up of energy communities)

Support could also be provided for the measures related to the renovation of buildings. 

Problematic investments

Measures 1 and 3 on on-demand-transport and social leasing of vehicles respectively, both mention the possibility of procuring 'low emission' vehicles. This risks further locking in vulnerable households into expensive and polluting fossil fuel use. 

Measure 1 relies on private sector services without adequate guarantees that: beneficiaries will meaningfully be supported by the service, and that there is a long term structural plan to improve public transport. A more detailed impact and need assessment is needed, taking stock of the existing public transport network. 

Cost-supportive measure design

There are no cost-supportive measures (e.g., subsidies on bills). 

Strategic alignment & linkages with other major national strategies & plans

The Cypriot Plan does not reference any other national or regional policies and strategies.

Mobilisation of broader ETS2 revenues

There is no reference to mobilising broader ETS2 (or ETS1) revenues for the purposes of the Plan. The NECP outlines significant investment needs for the decarbonisation of the economy (over 1.5 billion euros by 2030). Therefore broader revenue streams are required for the purposes of the Social Climate Plan.