Boost In Green Investments: Cyprus Secures €257 Million From EIB Group In 2023

Last year saw the European Investment Bank (EIB) Group’s lending in Cyprus surge to €257 million, marking a 3% increase compared to 2022. This financing injection is aimed at bolstering economic competitiveness, combating climate change, and enhancing the quality of life for residents.

A significant portion of the funding, amounting to €130 million, was allocated to support the THALIA program. THALIA focuses on smart and green investments, encompassing digitalization, water management, energy efficiency, environmental protection, and vocational training. Additionally, €100 million was dedicated to wastewater infrastructure projects in Nicosia, Limassol, and Larnaca, aimed at ensuring compliance with EU water legislation. The remaining €27 million was channelled through the European Investment Fund (EIF).

Kyriacos Kakouris, EIB Vice President for Cyprus, emphasized that the support provided in 2023 surpassed targets and played a pivotal role in steering the country towards smart, digital, and sustainable investments while fostering employment and social cohesion. Kakouris highlighted the advisory assignments, particularly in the energy sector, which are instrumental in accelerating Cyprus’s transition towards climate-friendly investments.

Cypriot Finance Minister Makis Keravnos expressed satisfaction with the strong partnership between Cyprus and the EIB, which resulted in substantial financial commitments. Keravnos emphasized the alignment of these investments with crucial policy priorities, such as sustainable energy, innovation, and sustainable urban development.

In addition to the water and energy sectors, the THALIA program, with a budget of €1.8 billion for 2021-2027, plays a pivotal role in Cyprus’s economic resilience and competitiveness. The EIF’s €27 million commitment in 2023 is expected to boost Cyprus’s nascent equity ecosystem, particularly through the Cyprus Equity Fund, the country’s first publicly supported venture capital fund.

The EIB’s advisory services expanded in Cyprus, offering technical assistance to both public and private sectors across various domains, including infrastructure, transport, climate action, and digital innovation. Notable assignments included support for the Vasilikos Energy Centre and the operational plan for the New Cyprus Museum.

The EIB remains committed to supporting EU policy objectives, including climate action and inclusive growth, with over half of its financing directed towards cohesion regions. This reflects the Bank’s dedication to fostering sustainable development and narrowing socioeconomic disparities within the European Union.