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Cyprus: Cyprus Environment Profile 2012

2012/03/06

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Cyprus Environment Profile 2012

What have been the major societal developments?

EU accession

Cyprus formally joined the European Union as a full member on 1 May 2004. EU accession and harmonization with the acquis communautaire led to significant changes in the business and general economic environment. Specifically, the adoption and implementation of the acquis dictated the complete liberalization of the economy and the removal of any remaining distortions that impeded the effective functioning of market mechanisms. Accession brought about the free movement of products, services, employment and capital. In 2008, Cyprus joined the Eurosystem, introducing the euro as its official currency.

Economic development

After the military intervention of 1974 and subsequent occupation, the economy of the island collapsed completely. 70% of the gross output of the island which was in the northern part was lost. Despite this, Cyprus has managed to revive its economy and to achieve an economy with favourable international ratings. However, the development that took place in Cyprus during the last three decades, and especially the rapid economic development after 1974, has put pressures on the natural environment, particularly in the coastal regions.

The manufacturing and processing sector was one of the most important production sectors of the Cypriot economy on which a significant share of exports depended. With the EU accession, as a result of the liberalization of trade and the gradual abandonment of the protective regime on which it depended, the operation and development of the manufacturing industry face problems of competitiveness with a serious impact in the island’s economy.

The predominant and continuously expanding share of the services sectors at the cost of both the primary sectors of economic activity, agriculture, mining and quarrying and the secondary sectors of manufacturing and construction, reflects the comparative advantages which Cyprus enjoys in the services sectors. These derive mainly from its strategic geographic location, the favourable business climate, the well-educated labour force, the relative satisfactory state of its infrastructure in transport, energy and telecommunications, the satisfactory living conditions and the close economic and political relations with neighbouring countries.

The basic characteristic of the Cyprus economy, as far as the distribution of income by factors of production is concerned, is the high, compared to international levels, percentage share of capital earnings to GDP. It is noted that Cyprus is in a generally favourable position, as regards the distribution of income. Income distribution is calculated to be less unequal in Cyprus compared to the EU.

Additional information: Ministry of Economics, http://www.mof.gov.cy/mof/mof.nsf]

Social changes

Over the last two decades, Cyprus has admitted a number of foreign workers in response to pressing needs in the labour market arising from the rapid economic development experienced recently. Today, one of the basic characteristics of the labour market is the employment of large numbers of foreign workers, especially in unskilled or low-skilled occupations. The total number of legally employed foreign workers reached around 57,000 in 2005, representing about 16.5% of the gainfully employed population of the island.

What are the main drivers of environmental pressures?

Urbanisation and development

Roughly beginning in the 1960s, the suburbanization of the main towns of Cyprus was based, to a great extent, on migration from rural areas, while it was accelerated by the resettlement of refugees from occupied areas. Whereas new suburban growth still continues in urban areas and around tourist resorts, it is accompanied by a parallel trend in the growth of smaller towns and villages within easy commuting distance from the main urban centres. On the contrary, more remote villages in mountain regions continue to loose population and are preferred only as locations for country homes. Within this overall situation, two key problem areas have been identified:

  • Urban core areas in decline. The problems facing urban areas are complex and varied. The expansion of cities has been followed, as elsewhere, by the deterioration and disintegration of historic urban cores due to the exodus of the population and businesses towards areas that are more competitively priced and offer better accessibility and availability of infrastructure. This gradual abandonment has led to a fall in the quality of the urban environment, accompanied by a more general deterioration of economic and social conditions. To address these problems the Department of Town Planning and Housing plays a leading role in the promotion of socio-economic regeneration through the improvement of the built environment and cultural infrastructure.
  • Mountain areas at a disadvantage. The mountain villages continue to lose population because, despite their advantages in terms of climate and environment, they are still behind urban areas in terms of employment opportunities and quality of life. A series of measures and actions will be implemented to facilitate the improvement of the life of local communities, promote the development of rural areas and the diversification of their economy. 

Other territorial challenges identified include those associated with urban dispersal as opposed to agricultural restructuring and nature protection, especially in the countryside, where new development continually encroaches on prime agricultural land and areas rich in natural resources. Pressures on land development for holiday homes further complicate this situation where there is already a high demand for the acquisition of holiday homes by overseas owners. With EU accession and the opening up of the real estate market, this trend has been accelerated.

Additional information: Town Planning and Housing Department, http://www.moi.gov.cy/moi/tph/tph.nsf]

Land use

The urban development rate relies directly on economic development, housing needs and the expansion of the road network. Over the last decades the urban areas have been rapidly expanding often at the expense of other land uses, while the increase in demand continues. Today, agricultural land constitutes 24% of the total government controlled area of the island, forests 23.7%, other forest covered areas 30.3%, barren and uncultivated land 9.6% and residential areas the remaining 12.4%.

Agriculture

Agriculture continues to be a vital sector of the economy despite its gradual decrease as a result of the development of other sectors, such as tourism and services, and the difficulties encountered in an extremely competitive environment. The importance of agriculture nowadays is not defined solely by financial indicators, but by the fact that it has a multi-functional role to play. In addition to the production of food, it contributes significantly to preserving the environment and providing the means for improving and protecting life in the countryside.

During the period 1960-1974, the agricultural sector expanded rapidly, but in 1974 it was severely affected by the Turkish invasion and occupation. Despite the forced concentration of population in the less productive part of the island, it was possible through concerted efforts and heave investment in land improvement and irrigation to reactivate the agricultural sector and to reach the pre-1974 production levels.

The scattered and small agricultural units, combined with the mountainous terrain, the lack of alternative economic activity in rural areas, the often limited productivity of the land, and the aging of the rural population are factors that limit the productiveness and competitiveness of the agricultural sector. These, in combination with the dry climate, the abandonment of mountain and deprived rural areas, and the continuously increasing intensification of agricultural practices, together with urbanization and urban development have led to the degradation of the rural environment.

Additionally, the problems of soil erosion and desertification have been intensified over the past few years. The prevailing climatic conditions and the increasing erosion of the soil contribute significantly to the degradation of the soil. Amongst the main causes are intensive cultivation in some parts of the island, land overexploitation, grazing practices, deforestation, inappropriate irrigation practices, the overexploitation of water resources, and forest fires. 

Cyprus accession in the European Union has created a new environment with new elements for agriculture within a strongly competitive environment. The Department of Agriculture aims at dealing successfully with the new situation through the modernization of the agricultural sector with special emphasis on the improvement of productivity and competitiveness, the application of new methods in integrated production, the production of safe products for the consumers, the application of measures for protecting and improving the environment and generally by sustainable development.

[Source: Publicity and Information Office, More information: Department of Agriculture, http://www.moa.gov.cy/moa/Agriculture.nsf]

Water resources

Throughout its long history Cyprus has always been confronted with the problem of water shortage. Cyprus has no rivers with perennial flow, while rainfall is highly variable and droughts occur frequently. Up until 1970 groundwater was the main source of water both for drinking and irrigation purposes. As a result, almost all aquifers were seriously depleted because of over-pumping and seawater intrusion was observed in most of the coastal aquifers.

The water problem and its exacerbation over the years were recognized early enough by the relevant state authorities who designed a long-term programme to combat the problem effectively. After independence, attention was turned to the systematic study and construction of water development works, both for storage and replenishing purposes.

Despite the remarkable work performed in the sector of water development, due to the increasing demand of water, the declining rainfall, the climatic changes and the greenhouse phenomenon, the available quantities of water for water supply and irrigation are not adequate. In order to face the situation, desalination units were constructed to eliminate dependency of the major residential and tourist centres on rainfall. The government water policy is not limited to desalination but also focuses on the exploitation of other non-conventional sources of water, such as recycled water for irrigation of agricultural cultivation and for the replenishment of the underground aquifers.

[Source: Publicity and Information Office, More information: Water Development Department, http://www.cyprus.gov.cy/moa/wdd/Wdd.nsf]

Energy

Cyprus depends almost exclusively on the import of mainly petroleum products. The highest demand comes from the transport sector which absorbs approximately 51% of the final petroleum demand. During the period 1995-2005 the final energy demand has been increasing by an average of 2% annually, while electricity consumption increased by 70%. The contribution of renewable energy sources is limited to 4.6% (2006) of the total energy consumption and comes mainly from solar energy.

Tourism

Tourism is one of the vital sectors of the island’s economy with a revenue of 1.7 billion euro, a contribution of over 12% to the GDP and significant multiplier effects for the economy. The number of tourist arrivals exceeded 2.4 million in 2006, while the ratio of tourists to the population of the island is above 3:1. Tourism constituted the main development tool for recovery following the serious setback brought about by the invasion in 1974. Nevertheless, the large dependence on tourism and the rapid development patterns that followed have led, beyond the significant economic development, to several pressures on the natural and human environment, and as a result the sustainability of the destination.

Regarding tourism, the Strategic Plan for Tourism 2010 is aimed at introducing sustainability on the tourist development of Cyprus, which will revolve around two central pillars, culture and environment. The overall objective is to increase total revenue from tourism by offering quality and value for money to the visitor, coupled with a very modest increase in arrivals.

What are the foreseen developments

Climate change: According to the Expected Development Scenario for Cyprus regarding climate change, a significant increase in greenhouse gas emissions is expected for the period 2000 – 2020. To this end, a number of measures are gradually being implemented aimed at increasing the percentage of renewable energy sources, reducing energy consumption in the housing and tertiary sector, industry and transport, managing waste, and reducing emissions.

Sustainable development: A number of measures are also under implementation through the National Sustainable Development Strategy, aimed at the protection of the atmospheric environment, biodiversity, water and marine resources, coastal and rural areas, the promotion of green public procurement, environmental management systems and green products, the reduction in energy and water consumption, as well as the reduction in waste production, all of which are expected to reduce the adverse impacts of development on the environment and improve the current consumption and production patterns. Some of the measures relating to the environment include:

  • Climate change and clean energy: The general objective is to limit climate change, as well as its costs and effects to society and the environment. Specific targets include:
    • Reduction of greenhouse gas emissions
    • Production of energy from waste
    • Promotion of the use of public transport
    • Establishment of renewable energy sources

Sustainable transport: The basic objective is the implementation of an integrated sustainable strategy to satisfy the increasing transport demands, while at the same time ensuring economic development and the protection of the environment, public health and social cohesion. This includes the restructure and expansion of urban, suburban and country transport systems and substantial reductions in the use of the private vehicle. 

  • Sustainable consumption and production: The foremost objective is the promotion of sustainable methods of consumption and production by decoupling economic growth from environmental degradation. The basic measures which have been developed are:
    • Green Public Procurement
    • Ecolabel
    • EMAS
    • Water management
  • Conservation and management of natural resources: The objective to improve the management and avoid the overexploitation of natural resources, recognising the value of ecosystem services. The subject areas addressed include the atmosphere, forests, water resources, marine and coastal areas, the protection of biodiversity, agriculture and mineral resources.
  • Public health: The objective is to promote good public health and improve protection against threats. The actions examined include the introduction of health issues in all policies, prevention and the improvement of health services.

Social inclusion, demography and migration: The objective is to create a socially inclusive society by taking into account solidarity between and within generations and to secure and increase the quality of life. The measures suggested include:

    • Reduction of the risk of poverty
    • Introduction of vulnerable groups in the labour market,
    • Improved accessibility for people with special needs
    • Prevention of the social exclusion of children
  • Global challenges: the objective is to actively promote sustainable development worldwide and ensure that the European Union’s internal and external policies are consistent with global sustainable development and its international commitments.
  • Urban development and sustainable tourism: the main objective is to achieve sustainable economic development, in conjunction with social cohesion, sustainability and quality, through specific actions that ensure a balanced urban and rural development.
  • Education and training: The objective is to develop educational procedures which favour an overall systematic approach to environmental issues. Actions include the training of educators and the establishment of Environmental Education Centres.
  • Research, technological development and innovation: The objective is to improve the competitiveness of the economy within the framework of sustainable development. Actions include:
    • New intergovernmental agreements
    • Improvement of the existing research infrastructures and the creation of new ones
    • Establishment of a National Research Council

Strategic Development Plan for the Economy: The Strategic Development Plan 2007-2013 for the economy is in complete synergy with the Lisbon and Sustainable Development Strategies. The main strategic objective is to secure sustainable economic development and social cohesion, while enhancing competitiveness. Measures relating to the environment include the full compliance with the Kyoto agreement and the relevant EU commitments, an increase in the use of renewable sources of energy, the protection of biodiversity and nature, the appropriate management of solid and liquid waste, the reorganization of the institutional framework for environmental management, consumer protection, sustainable urban transport, and the improvement of rural regions and downgraded urban areas.

National Lisbon Strategy: Policies and measures are also implemented through the National Lisbon Strategy, one of the Key elements of which is environmental sustainability. The main policy priorities pursued in the area of the environment are the following:

  • The creation / expansion of the environmental infrastructure for a sustainable management of resources and waste;
  • The protection, preservation and management of coastal areas;
  • The promotion of energy saving and renewable energy sources;
  • The reduction of greenhouse gases emissions;
  • The internalization of external environmental costs.