While Cyprus will fail to meet its EU 2020 environmental targets, which include the reduction of CO2 emissions in transport, the government is preparing an incentive scheme to encourage Cypriots to drive cleaner cars.
Reportedly, the government is preparing a set of incentive schemes for consumers to replace old vehicles with newer, cleaner cars, to reduce emissions.
Nicosia wants to come as close as possible to its 2020 EU environmental targets by encouraging more people to drive hybrid and electric cars. However, government efforts to tackle the issue are met with criticism by car importers and MPs.
The Department of Road Transport is preparing the framework of an incentive scheme to get older, polluting cars off the road.
It will be similar to the last car withdrawal incentive scheme in 2010 when the state-subsidised beneficiaries with a cash amount up to EUR 1800.
According to Politis daily, Transport Minister Vassiliki Anastassiadou is in consultation with the Finance Minister to get funds for the scheme – to be implemented next year — as soon as possible.
The government is also looking into a scheme which will support electric car owners setting up a charging facility in their homes.
The plan will cover 30% of the cost of installation of a photovoltaic system used for the production of energy needed for recharging electric vehicles.
Ministries are also examining ways of enhancing infrastructure necessary for recharging electric cars with the Department of Mechanical and Electrical Services drawing up a plan for the creation of 10 new charging points across the island.
Critics say the government is taking action only because it is under pressure from Brussels for Cyprus to meet its eco targets, prompting it to encourage consumers to switch to electric cars, rather than just cleaner cars.
“In any case, it is too little too late,” said Green MP Charalampos Theopemptou, who noted that just like previous schemes brought before the House, it fails to address the issue of pollutant emissions.
Theopemptou said certain failure to meet EU 2020 goals will see taxpayers’ money going to hefty penalties imposed on the country as a result of not complying.
He pointed out Cyprus had an obligation to reduce emissions by replacing 10% of fuel used in transport with power generated by Renewable Energy Sources (RES).
Cyprus is currently at 3-4% with the EU preparing to impose hefty fines.
“To avoid being fined by the EU, Cyprus will have to resort to the emissions exchange market, which will cost us some EUR 40-50 mln a year”.
Theopemptou amounts quoted in the House regarding subsidies are nowhere near the amounts given in 2010.
“Even if the state is to give this amount, nothing compares to the amount one will have to dish out to buy a hybrid or even more an electric car,” said Theopemptou who pointed out that simple electric cars cost some EUR 30-40,000.
He said that Cyprus should enhance its public transport network rather than promote the use of cars.
There was a heated discussion in Parliament about introducing penalties for older cars which have higher emissions by increasing the cost of road tax.
No infrastructure
“What happened was, we ended up voting for the reduction of road and other taxes for new cars, but we did not increase the taxes on older cars with high emissions. Thus, we just encouraged people to buy and use more cars, when we should be trying to increase the use of public transport.”
Theopemptou said that even if, somehow, everyone woke up owning an electric car, “we literally wouldn’t be able to get very far, as there is no infrastructure to support the introduction of electric cars”.
“The whole point of introducing electric cars is to be able to replace conventional fuel with energy produced from RES. Only then will we be able to bring emissions down. Introducing electric cars only to plug them with electricity produced with mazut would be pointless.
The Cyprus Association of Car Importers argues that the cost of cleaner cars is significantly higher than those running on conventional fuel.
“Thus, the cost of such a car is putting people off from even searching the market for these cars,” said the association’s secretary Alexis Anninos.
He added that the public is not only put off by high prices but also by the lack of infrastructure, noting that there are only 18 charge points on the island.
“The latest changes regarding road taxes and other taxes on cars did nothing to encourage people to replace their old car with a newer one friendlier to the environment.”
Anninos said 7 out of 10 cars registered monthly are old second-hand cars with high pollutant emissions. He noted that authorities should develop a strategy to clamp down on CO2 emissions by getting older cars off the road.
“As an association, we are working closely with the government to introduce new measures which will reduce the country’s emissions in transport. However, you cannot achieve this with a restriction on free trade. We need to find ways to get consumers to consider the effect their car will have on the environment and public health before purchasing,” said Dickran Ouzounian, the association’s treasurer.
He said the state will need to set up the necessary incentive schemes but also the RES infrastructure needed to support the use of electric cars.
Ouzounian said incentive packages for the public to set up photovoltaic systems in their home should be a priority and pointed to the lack of charge points.
He said even if the authorities set up a decent number of charge points, the grid might not be able to accommodate the increase in demand.
“This means that infrastructure for the production of energy from RES needs to become a priority for the government.”
