Cypriot businesses are facing significant challenges due to the energy environment, feeling the impact of the energy crisis more acutely than businesses in the EU. Three-quarters of Cypriot companies (76%, compared to the EU average of 60%) cite rising energy prices as their greatest concern. Additionally, seven out of ten Cypriot businesses (70%) express significant worry about energy uncertainty, in stark contrast to nearly half of the businesses in the EU (47%).

According to Brief, concerns about energy availability are particularly high in Cyprus (85% compared to 73% in the EU), and almost every Cypriot company (94%) has outlined one or more strategies in response to energy market shocks.

These concerning findings emerge from a study conducted by the European Investment Bank among approximately 13,000 businesses. The study covers companies across all EU member states, including a sample from the United States.

Specifically for Cyprus (conducted separately from other EU countries), companies most often seek energy savings/efficiency (82%), while two-thirds (66%) are diversifying their energy mix.

Cypriot companies are more likely than the EU average (47%) to respond to the energy shock by halting or reducing production (47% vs. 24%). However, they are less likely to renegotiate energy contracts (52% vs. 67%) or pass the increased energy costs onto customers (50% vs. 62%).

Furthermore, almost every company in Cyprus is concerned about the energy shock (98%), reflecting the EU average (95%). More than nine out of ten Cypriot businesses are adopting strategies to cope with recent energy market developments (94%).

Cypriot companies face more significant obstacles than their EU counterparts, including supply chain and transportation disruptions (78%), changes in customs/pricing (73%), and access to goods and raw materials (72%).

Climate change is a reality for most Cypriot companies, with 70% stating that weather phenomena affect their operations. Three in ten (31%) report a significant impact, exceeding the EU average (19%).

Moreover, Cypriot companies are more likely than those in the EU to see stricter climate standards and regulations as an opportunity rather than a risk (35% vs. 20%). More than half of Cypriot businesses (52%) have taken measures to strengthen resilience against natural risks due to climate change, compared to the EU average (36%).

The use of insurance products to offset climate-related losses is much higher in Cyprus (41%) than in the entire EU (13%). Cypriot businesses are less likely than their EU counterparts to take measures to reduce greenhouse gas emissions (GHG) (79% vs. 89%).

Lastly, Cypriot companies are more inclined to invest in new, less polluting business sectors and technologies (40% vs. 32%) but focus less on sustainable transportation options (26% vs. 46%).