Cyprus is introducing green taxes to support its goal of cutting greenhouse gas emissions by 32% by 2030. These taxes include a carbon tax on fuels, a water fee, and a waste disposal charge, all aimed at encouraging eco-friendly behavior and reducing reliance on fossil fuels.

The carbon tax will initially raise fuel prices by about 6 cents per liter, increasing further by 2026, with additional rises expected under the EU emissions trading system starting in 2027. The water and waste fees, along with a new hotel stay tax, will also add to costs.

These measures face delays, with full implementation pushed to 2025–2026, partly to allow time for compensatory support.

Studies show the green taxes will increase household expenses—especially for lower-income groups—and raise government revenue by tens of millions annually. To offset the burden, the government plans subsidies and incentives for vulnerable groups and green technologies.

Economists agree the green transition is necessary but warn it will raise costs and challenge Cyprus’s competitiveness compared to countries with looser regulations. Consumer groups call for postponing the taxes until people can afford them.