Minister of Transport, Communications and Works Mr.Yannis Karousos attended the EU Transport Council, which took place yesterday, 2 June 2022, in Luxembourg.
The discussions focused on the "Fit for 55" package. In this context, Transport Ministers reached a general approach in relation to the Proposed Regulations on Alternative Fuel Infrastructure (AFIR) and on the "ReFuel EU Aviation" initiative, which aims to ensure a level playing field for sustainable air transport. In addition, the EU Transport Ministers exchanged views on the Union's guidelines for the development of the trans-European transport network.
Speaking during the debate on the proposal for a Regulation on Alternative Fuel Infrastructure Regulation (AFIR), the Transport Minister stressed that this is an important proposal, which will make a substantial contribution to the carbonisation of the sector. Despite the peculiarities and challenges that Cyprus faces, Karousos stressed, we have already adopted an ambitious national action plan for electromobility and our target remains that by 2035 100% of new vehicle registrations will be electrified.
In his intervention during the debate on the "ReFuel EU Aviation" initiative, Mr Karousos pointed out that Cyprus is adversely affected by the legislative proposals concerning aviation due to its regional and island character. In Cyprus, he added, we carried out a cumulative impact assessment of all aviation proposals, based on a tool now used by other stakeholders such as IATA, Airlines for Europe and Airport Council International, as well as by some Member States.
Based on our calculations, the total cost for air transport for all EU Member States by 2050 is estimated to reach €1.4 trillion, Karousos said, noting that an assessment of the impact on Cyprus' economy was also carried out. The results in both cases are alarming, he underlined. Referring specifically to Cyprus, the Transport Minister explained that the cumulative impact on Cyprus' gross domestic product is 8 times higher than the EU average. The cumulative cost from 2024 to 2050 is estimated to reach €18 billion in an economy of €24 billion, while air ticket prices will increase by 40% to 50%, he pointed out. This increase in air ticket prices will result in a 15-20% reduction in tourism revenue and lead to a 1.75% reduction in Gross Domestic Product, he said. Karousos also referred to the loss of up to 10,000 jobs, which corresponds to 2.5% of jobs in Cyprus. After noting that the carbon leakage to third countries will have a negative impact on tourism and the economy, but also on European competitiveness in general, he stressed that as if the above was not enough, Turkey still maintains an unjustified overflight ban on all carriers registered in Cyprus.
At the same time, Karousos said that Cyprus also recognises the positive aspects of the proposal and stressed that despite the difficulties, Cyprus wishes to be part of the solution and not part of the problem. I am particularly pleased with the extension of the definition of sustainable aviation fuels (SAF) and synthetic fuels, the exemptions for the refuelling of aircraft and the extension of the transition period, the minister noted.
In this context, he stressed that the greater ambition and differentiated targets regarding the use of SAF will affect the competitiveness of some regional airports and will create an uneven playing field. This is a risk we cannot take, he underlined. In addition, Mr Karousos said that Cyprus has submitted a proposal for the creation of a SAF subsidy mechanism. In this context, he explained that this is a tool that will aim to bridge the price gap between SAF and conventional aviation fuels and the development of the SAF market. Immediately after the Minister's intervention, the French Presidency acknowledged the specificities of regional and island EU Member States, and indicated that these specificities should be taken into account.
During the afternoon debate on the Trans-European Transport Networks (TEN-T), the Transport Minister said that the extension of corridors to neighbouring or third countries should take into account the clear distinction in terms of transport policy between these countries and EU Member States. No doubt, he added, a balanced approach is needed which will ensure that decisions are taken after consensus of all EU Member States and that due process is followed. After noting that the deadline for the completion of the Central Network by 2030 is considered ambitious, the Transport Minister stressed that it should be taken into account that our financial possibilities are limited.
During the working lunch, the Ministers had the opportunity to discuss the impact of the Russian invasion of Ukraine, with a focus on the infrastructure and transport sector. In his intervention, the Transport Minister said that we fully understand the consequences of the Russian invasion of Ukraine and our country, which has experienced the illegal Turkish invasion and continues to be under occupation, has joined our EU partners from the very first moment in condemning the invasion and offering all kinds of assistance to the people and government of Ukraine.
In his statements after the Council, Mr. Karousos expressed his satisfaction with this historic, as he said, meeting in which a general approach was reached on the first legislative proposal on transfers of the "Fit for 55" package. In this context, he pointed out that Cyprus' initiatives and proposals have been adopted and included in the legislative texts under discussion, such as the SAF subsidy mechanism and the specific exemption for Cyprus in the alternative fuel infrastructure legislation.
For footage of the participation of the Minister of Transport, Communications and Works in the Council click here.
For video of the Minister's statement following the conclusion of the Council, click here.
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