Innovative Green Fiscal Policies in Cyprus

Implementation results in the Municipalities of Nicosia and Lakatamia

The implementation of Green Policies on a Municipality level is a major challenge for the Cypriot Local Authorities, given the limited competencies they are authorized to apply in their territory. In implementing the Covenant of Mayors and achieving important goals in respect to the climate change, the Municipalities of Nicosia and Lakatamia respectively, have adopted innovative green policies for the first time at a local level.

Since January 2019, the Municipality of Nicosia has been implementing green taxation in the hotel sector by promoting energy saving measures and RES systems. In particular, Nicosia Municipality has approved green taxation under Hotel Accommodation Tax and the revenues collected will compensate all the Hotels in its region, with free Energy Audits as well as the funding of two awareness events each year. The energy audits will review the current energy consumption of these hotels (from heating, cooling and electricity use) and will identify opportunities for reductions but also will lead the hotel sector into a more sustainable path.

The municipality of Lakatamia, on the other hand, has committed an amount of money (green fee) for the creation of an educational corner, whose scope will be the promotion of RES, and the re-use of waste. This interactive educational corner is expected to be a way of raising awareness among schools and all the citizens of the Municipality, so that to reduce their CO2 emissions, promote RES more widely, and re-use their waste.

The green taxation is one important tool towards local sustainability and the first step for the development of a revolving fund, where is important to support financially the local sustainable energy and climate action plans and tackle climate change.

For more information about the actions of the Municipalities and the LOCAL4GREEN project: