Public spending to address the risks of the climate crisis is far below the necessary levels, according to a note by the Cyprus Fiscal Council, in view of the preparation of the 2026 Budget and the 2026–2028 Medium-Term Fiscal Framework (MTFF).
The Fiscal Council notes that Cyprus continues to lag in the development of infrastructure, policies, and other measures to mitigate the impacts of climate change. “The estimates of the impacts at the fiscal, macroeconomic, and social level should be a cause for concern,” it says, also pointing to a possible political risk, as Cyprus is on a path of failing to meet its obligations towards the EU.
It also stresses that the cost of inaction should be considered significantly higher, with…
