Apart from Environment Minister Kostas Kadis, Transport Minister Giannis Karousos is also in Luxembourg, as provisions of the package concern transport and especially aviation.
After the Environment Ministers' morning statements, the French Presidency was expected to present in the afternoon its compromise proposal on the issues to be discussed.
Kadis referred at length to the interconnectivity constraints that Cyprus faces, as well as the limited alternatives due to economies of scale.
Regarding the Carbon Border Adjustment Mechanism (CBAM), he noted that the concerns raised by various countries about a potential hit to competitiveness should be taken into account.
He added that it would be difficult for Cyprus to accept a reduction in the size of the Social Fund for Climate from what is being discussed, and added that an increase in the flexibility of the fund was needed.
With regard to shipping, he noted that this was a sector of interest to Cyprus because of its size, and that efforts to reduce emissions were progressing.
Finally, he referred to the importance of the aviation sector for Cyprus due to the lack of connectivity, but also to the fact that any cost increase in aviation will essentially bring about a horizontal tax on all levels of the country's economy.
He said Cyprus has proposed alternatives, such as the SAF allowance system which will be part of the Emissions Trading Scheme (ETS) and will incentivise airlines to use sustainable fuels. He also added that there should be an assessment of the impact of extending the ETS to the entire EU aviation sector.
Environment ministers discuss the Council's position on the "Fit for 55" bills to review the EU emissions trading scheme, review the directive on binding emission reductions by member states, review the regulation on the absorption of emissions through land use and forestry, review the rules on performance standards for carbon dioxide emissions a CNA
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