EU Transport Ministers agreed on the Council’s general approach regarding a legislative proposal on transport under the “Fit for 55” package, during the Transport Council of the European Union which met on Thursday in Luxembourg.
In statements on Friday, Transport Minister Yiannis Karousos said the common position on this package, which includes the development of alternative fuel infrastructure, was a “historic moment”. He noted that Cyprus’ initiatives and proposals have been adopted and included in the legislative texts under discussion, such as the SAF subsidy mechanism and an exemption for Cyprus.
Karousos pointed out that despite the fact that the country’s economy and aviation will face a significant impact, amounting to 18 billion euros for the period 2024 – 2050 in an economy of 24 billion euros, Cyprus wants to be part of the solution which is why it has made specific proposals.
According to a statement, the Transport Ministers agreed on a general approach on the Proposed Regulation on Alternative Fuel Infrastructure Regulation (AFIR) and on the ReFuel EU Aviation initiative, which aims to ensure a level playing field for sustainable air transport, and exchanged views on the EU guidelines for the development of the trans-European transport network.
During his intervention on the AFIR, he presented the country’s national action plan for electromobility, adding that the aim is for 100% of new vehicle registrations to be for electric cars by 2035.
During the discussion on “ReFuel EU Aviation”, Karousos referred to Cyprus’ assessment on the impact of these proposals on the economy of the country, which was carried out using a tool that is now also used by IATA, airlines in Europe, Airport Council International and some member states.
He said that the cumulative impact on Cyprus’ GDP is expected to be eight times higher than the EU average, causing a 40% to 50% increase in air ticket prices, a 15% to 20% reduction in tourism revenue and a 1.75% reduction in GDP, as well as the loss of up to 10,000 jobs, which amount to 2.5% of jobs in Cyprus. The measures, he said, will also affect European competitiveness, recalling that Turkey bans overflights to Cypriot airlines.
Karousos welcomed the extension of the definition of sustainable aviation fuel (SAF) and synthetic fuels, the exemptions for refueling aircraft and the extension of the transition period, but noted that the changes would affect the competitiveness of some regional airports and create an uneven playing field.
According to a statement, the French Presidency acknowledged the specificities of regional and island EU member states, and said that these specificities should be taken into account.
During the afternoon debate on trans-European transport networks, Karousos said that the extension of corridors to neighbouring or third countries should take into account the clear distinction in terms of transport policy between these countries and EU Member States. Noting that the deadline for the completion of the Central Network by 2030 is quite ambitious, the Transport Minister stressed that it should be taken into account that Cyprus’ economic potential is limited.
Source: Cyprus News Agency