Karousos: Mechanism for covering additional fuel costs for air transport

A mechanism that covers 100% of the additional costs from the transition to the use of sustainable fuels for aviation in Cyprus is contained in the agreement of the Ministers of Environment for five laws of the "Fit for 55" package, explained on Wednesday the Minister of Transport Giannis Karousos in a statement from Luxembourg, where he participated together with the Minister of Environment Costas Kadis in the negotiation that took place.

Mr. Karousos noted that following the initiative of Cyprus, in the text of the directive that includes air transport within the EU in the emissions trading scheme (ETS), the Rewarding Mechanism for the use of Sustainable Aviation Fuels (SAF Allowance Mechanism) was included.

As he noted, the mechanism "will help mitigate the increase in fuel costs that will initially be observed with the use of sustainable aviation fuels."

In particular, he explained that 20 million free greenhouse gas emission allowances would be available to cover a 70% increase in the additional cost of using sustainable aviation fuel over the cost of conventional fuels. "With this mechanism, the European aviation sector, including Cyprus, will have a substantial benefit of around 1,1 billion euros," he added.

The text also included "a special reference to island states with a size of less than 10.000km for which the difference in fuel costs will be covered to 100%," he said. The subsidy pool created will reach 500m euros, he added.

"Our main goal in the negotiations was to ensure that Cyprus will not be negatively affected," Karousos continued, noting that the Cypriot side insisted on the need to conduct a study to measure the consequences of the implementation of the directive in relation to the competitiveness of the economy. and the connectivity of Cyprus.

"When a small country like Cyprus proposes solutions and tools that are adopted at European level, then only we can feel proud," said Mr. Karousos. Cyprus, he said, has taken initiatives at European level, "starting with the Declaration on Air Connectivity supported by 12 EU Member States, and proceeding with a detailed study of the impact of the Fit-for-55 legislation in the field of aviation , which we have communicated to all Member States ", but also contacts in the European Parliament, the Commission and competent international organizations.

Source: KYPE