It is with great pleasure that I address the conference co-organised by the Federation of Employers and Industrialists and Top Kinisis Conference & Events, in cooperation with the Cyprus Citizens' Energy Office, on "Green Transition and Entrepreneurship - Opportunities and Challenges towards a Sustainable Economy". Besides, as you know, the Ministry of Energy, Trade and Industry is one of the protagonists in the implementation of our common vision for the rapid transition of our country to the green economy.
Undoubtedly, we are currently going through an extremely critical period. Since the beginning of 2020, the Covid-19 pandemic has created very serious social and economic problems, which, unfortunately, have then been further aggravated by the war in Ukraine, causing an unprecedented energy crisis and radically changing the geopolitical balance. At the same time, the recent decision by OPEC countries to cut production has led to a new increase in the price of oil and its products, reinforcing the energy crisis and inflationary trends.
As a result of the war, the first concern of the European Union, and of every Member State, is the security of energy supply, seeking ways to urgently diversify its energy routes and suppliers. At the same time, the European Union is taking measures and deciding policies to remain focused and to further strengthen the implementation of the Green Deal.
Cyprus of course could not remain uninvolved in these efforts of the European Union. We have already discussed with the European Commission the role that our country, as well as the South-Eastern Mediterranean fields in general, can play in the decoupling of the Union from Russian gas. At the same time, we are intensifying our efforts to bring natural gas to the island, in liquefied form as a first stage and in a subsequent stage in gaseous form, from our own fields or those in the region.
It is, I think, extremely important that, despite the first reading of the data, which seems like it should have led to a slowdown in the green transition, this energy crisis has sharply increased global investment in clean energy, which soared to $1.1 trillion in 2022. For the first time, according to a new report by research firm BloombergNEF, the funds spent on the energy transition are on par with investments in fossil fuel supply.
However, according to the Organisation for Economic Co-operation and Development (OECD), global investments of €6.35 trillion per year will be required by 2030 to meet the goals of the Paris Agreement. It is therefore clear that Governments alone will not be able to meet these huge financial needs and therefore the mobilisation of the private sector is required. In order to mobilise private capital and promote green investments, 41% of the budgeted resources have been earmarked in the national Recovery and Resilience Plan "Cyprus _ Tomorrow" to be invested in the green transition. The Ministry of Energy, Trade and Industry, in the 2021 - 2027 Programming Period, has secured a total of approximately €590 million, five times the amount secured in the previous programming period 2014 - 2020. Our aim is to provide substantial incentives to households, businesses and public entities to invest in green energy, as well as in energy efficiency measures. In this way, we will also achieve our stated and main objective of reducing the cost of the energy we consume.
Ladies and gentlemen,
The main pillars of the energy policy we are implementing in the Ministry are the strengthening of the country's security of energy supply, the removal of its energy isolation and the operation of the competitive electricity market and the internal market for natural gas. At the same time, as I mentioned before, we seek to reduce costs for all consumers, with the policies we implement aiming to overcome, as far as possible, the objective difficulties we face as a small island country with an isolated energy system, limited wind potential, lack of water resources for hydroelectric power generation and limited availability of land for large energy projects.
Through the above policies, we have so far managed to achieve almost all the targets set in the National Energy and Climate Plan for 2021, both for renewable energy and energy savings. I must point out that we are not ignoring the realities and challenges, which have become even more demanding due to the pandemic and the energy crisis. It is therefore for this reason that we are proceeding with the revision of our National Plan to make our objectives even more ambitious, on the basis of the European Union's "Fit for 55" policy.
At this point, I would like to mention some of the most important measures, as well as the reforms we are promoting in the Ministry. Among others. [*]We are implementing the €98 million National Action Plan to transform the Cypriot economy into a circular economy. [*]Our budget includes an allocation of €35 million for the installation of smart meters, as well as an allocation of €100 million for investments in the electricity grid to support the green transition. [*]We are moving forward with the establishment of a one-stop-centre for the licensing of Renewable Energy projects, which will come under the Business Facilitation Unit and will operate through an online platform that will be ready soon. [*]We support the extremely important project of electrical interconnection between Cyprus, Greece and Israel, which will remove the energy isolation of our country and create the conditions for an even greater penetration of Renewable Energy Sources. [*]In our Sponsorship Plans, we place particular emphasis on vulnerable households, with increased sponsorships and the list of beneficiaries extended by 50 thousand people. [*]Having adopted virtual net metering for households and farmers last year, we have also adopted virtual net billing for businesses from 1 April 2023. At the same time, we included wineries as beneficiaries of virtual net metering. [*]We are reviewing our approach around the use of natural gas as a transitional fuel and in the mix for use in the domestic market we are introducing natural gas located in the Eastern Mediterranean, and more specifically in the EEZ of Cyprus. [/LIST]
Friends,
Having briefly mentioned our energy strategy, I must admit that what interests me most today is to listen, with great attention, to the contributions and concerns of the participants and other speakers of this Conference. After all, I believe that public dialogue with our partners and society at large, collective effort and work, is the key to everything we want to achieve. So that we can have lower cost and environmentally friendly electricity generation, creating a healthier environment for citizens, new green jobs and emerging green investment opportunities.
I wish you every success in the proceedings of the Conference and thank you for your attention.
(GA)
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