The Cyprus Banking Association, in collaboration with Cyta, has co-financed a study by the consulting firm McKinsey aimed at developing a roadmap for Cyprus’s decarbonization. The initiative supports the country’s goal of achieving net-zero greenhouse gas emissions by 2050 at an optimal cost to society.

According to an official announcement by the Cyprus Banking Association, the study lays out a clear and practical framework for achieving national climate targets, which are aligned with the ambitions of the European Green Deal for a climate-neutral Europe.

The study contributes to the planning and revision of Cyprus’s National Energy and Climate Plan by providing data-driven insights and tools to assist authorities in shaping effective climate policies. It includes detailed sector-specific proposals, cost estimates, and possible policy measures to support informed decision-making.

Cyprus is currently facing a profound energy transition that will impact all sectors of its economy. For a smooth shift to a low-carbon model, the Banking Association emphasizes the need to consider sector-specific challenges, implement skills development policies, and provide support mechanisms for affected stakeholders to maintain economic competitiveness.

The total investment required to achieve the 2050 targets is estimated at €40 billion.

In preparation for the future, the banking sector in Cyprus is already playing a key role in supporting the sustainable transition of households and businesses. This includes green loan financing, which helps citizens improve energy efficiency and reduce their environmental footprint, as well as funding for renewable energy investments and environmentally responsible initiatives.

The telecommunications sector also plays a crucial role. Cyta, leveraging its advanced and reliable infrastructure, contributes to sustainable development through innovative technologies and services that connect communities, promote collaboration, and facilitate environmentally friendly practices.