Alpha News

Where Did the Half a Billion Euros from Pollution Permits Go?

Published January 3, 2026, 19:18

Cyprus is facing criticism over the management of revenues generated from the auctioning of greenhouse gas emission permits. Despite collecting nearly half a billion euros (488 million euros) between 2012 and 2024, with 94.6 million euros in 2024 alone, these funds are not being adequately channeled into actions directly related to reducing pollution and transitioning to a green economy. According to European legislation, these revenues should be used for decarbonization efforts, such as reducing the use of fuel oil in electricity generation. However, the government appears to be using them to cover general state budget needs, including providing benefits to households to alleviate electricity bills, renting equipment for fire prevention, and purchasing electric motorcycles. Furthermore, a portion of the funds has been allocated to projects such as research and innovation in the energy sector, energy upgrades for schools, reforestation, and firebreaks. The President of the Parliamentary Committee on the Environment, Charalambos Theopemptou, strongly criticizes this practice, highlighting the lack of transparency and limited impact on the green transition. Theopemptou emphasizes the need for a faster installation of photovoltaic systems in households, as Cyprus has committed to converting all homes to zero-emission by 2050. However, the installation rate is very low, failing to meet the target of 16,000 upgrades per year.