A mechanism to cover 100% of the additional costs of switching to the use of sustainable fuels for aviation in Cyprus is contained in the agreement by Environment Ministers on five pieces of legislation in the "Fit for 55" package, Transport Minister Yannis Karousosos explained on Wednesday in a statement from Luxembourg, where he participated with Environment Minister Kostas Kadis in the negotiation process.
Mr. Karousos noted that following an initiative by Cyprus, the SAF Allowance Mechanism was included in the text of the directive that integrates aviation within the EU into the Emissions Trading Scheme (ETS).
As noted, the mechanism "will help mitigate the increase in fuel costs that will be seen initially with the use of sustainable aviation fuels."
In particular, he explained that 20 million free greenhouse gas emission allowances will be allocated to cover 70% of the additional cost increase from the use of sustainable aviation fuels compared to the cost of conventional fuels. "With this mechanism, the European aviation sector, including Cyprus, will have a substantial benefit amounting to around €1.1 billion," he added.
Also included in the text is a "specific reference to island states smaller than 10,000km² for which the difference in fuel costs will be covered at 100%," he said. The subsidy pool created will reach 500 million euros, he added.
"Our main objective in the negotiations was to ensure that Cyprus would not be negatively affected," he continued. Karousos, noting that the Cypriot side insisted on the need to carry out a study to measure the consequences of the implementation of the directive in relation to the competitiveness of the economy and the connectivity of Cyprus.
"When a small country like Cyprus proposes solutions and tools that are adopted at European level then we can only feel proud", Karousos said. Cyprus, he said, has taken initiatives at European level, "starting with the Declaration on Air Connectivity, which was supported by 12 EU Member States, and continuing with a detailed study of the impact of the Fit-for-55 legislative package in the air transport sector, which we communicated to all Member States", as well as contacts in the European Parliament, the Commission and relevant international organisations.
Source: CNA
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