Cyprus warns energy transition delays could threaten public debt

During a Cyprus Forum discussion, Fiscal Council chairman Andreas Charalambous warned that Cyprus’s slow shift to renewable energy and weak storage, recycling, and waste‑management infrastructure could undermine the sustainability of public finances. The Council’s 2026 interim report highlighted climate change as a fiscal risk, noting the country’s 25 % renewable electricity share and €500 million savings over the past decade, yet still falling short of EU targets. Charalambous cautioned that postponing the transition shortens the economic life of current investments and that targeted expenditure, rather than tax cuts, is needed to aid vulnerable households. He also clarified that persistent inflation must be distinguished from temporary price shocks caused by geopolitical tensions.