Karousos at the EU Transport Council in Luxembourg

The Minister of Transport, Communications and Works, Mr. Giannis Karousos, participated in the work of the EU Transport Council, which took place yesterday, 2 June 2022, in Luxembourg.

The focus of the discussions was the "Fit for 55" package. In this context, the Ministers of Transport have reached a general approach in relation to the Proposals for a Regulation on Alternative Fuels Infrastructure (AFIR) and the "ReFuel EU Aviation" initiative, which aims to ensure a level playing field for sustainable air transport. In addition, EU Transport Ministers exchanged views on the Union guidelines for the development of the trans-European transport network.

Speaking during the discussion on the proposal for a regulation on alternative fuel infrastructure (AFIR), the Minister of Transport stressed that this is an important proposal, which will contribute, in a substantial way, to the carbonization of the industry. Despite the peculiarities and challenges that Cyprus faces, Mr. Karousos underlined, we have already adopted an ambitious national action plan for e-mobility and our goal remains in 2035 100% of new vehicle registrations to be electric.

Speaking during the discussion on the "ReFuel EU Aviation" initiative, Mr. Karousos pointed out that Cyprus is adversely affected by the legislative proposals concerning aviation due to its regional and insular nature. In Cyprus, he added, we have assessed the cumulative impact of all aviation proposals, based on a tool now used by other stakeholders, such as IATA, airlines for Europe and Airport Council International, as well as some Member States.

"Based on our calculations, the total cost of aviation for all EU member states by 2050 is estimated to reach 1,4 trillion euros," said Mr Karousos, noting that the impact on its economy had been assessed. Of Cyprus. The results in both cases are worrying, he stressed. Referring specifically to Cyprus, the Minister of Transport explained that the cumulative impact on the gross domestic product of Cyprus is 8 times higher than the EU average. The cumulative cost from 2024 to 2050 is estimated to reach 18 billion euros in an economy of 24 billion euros, while the prices of air tickets will increase by 40% to 50%, he pointed out. This increase in air ticket prices will result in a reduction of tourist revenues by 15-20% and will lead to a reduction of Gross Domestic Product by 1,75%, said the Minister. Mr. Karousos also referred to the loss of up to 10.000 jobs, which corresponds to 2,5% of jobs in Cyprus. Noting that the carbon footprint in third countries will have a negative impact on tourism and the economy, but also on European competitiveness in general, he stressed that as if the above were not enough, Turkey still maintains an unjustified overflight ban for all registered air carriers. in Cyprus.

At the same time, Mr. Karousos stated that Cyprus recognizes the positive aspects of the proposal and stressed that, despite the difficulties, Cyprus wants to be part of the solution and not the problem. "I am particularly pleased with the extension of the definition of sustainable aviation fuels (SAF) and synthetic fuels, the exemptions for refueling aircraft and the extension of the transitional period," he said.

In this context, he stressed that greater ambition and differentiated targets for the use of SAFs would affect the competitiveness of some regional airports and create unequal conditions of competition. "This is a risk we can not take," he said. In addition, Mr. Karousos stated that Cyprus had submitted a proposal for the establishment of a SAF subsidy mechanism. In this context, he explained that this is a tool that will aim to bridge the price gap between SAF and conventional aviation fuel and to develop the SAF market. "We would like to see this mechanism included in the legislative proposal for the air pollution trading system," he concluded.

Immediately after the Minister's intervention, the French Presidency acknowledged the specificities of the EU's regional and island Member States, and stated that these specificities should be taken into account.

During the afternoon debate on the Trans-European Transport Network (TEN-T), the Minister for Transport said that the extension of corridors to neighboring or third countries should take into account the clear distinction made between transport policy between these countries and There is no doubt that a balanced approach is needed, which will ensure that decisions are taken with the consent of all EU Member States and that the proper procedure is followed. After noting that the deadline for the completion of the Central Network by 2030 is considered ambitious, the Minister of Transport stressed that it should be taken into account that our financial opportunities are limited.

At the working lunch, the Ministers had the opportunity to discuss the implications of the Russian invasion of Ukraine, with an emphasis on infrastructure and transport. In his speech, the Minister of Transport stated that we fully understand the consequences of the Russian invasion of Ukraine and our country, which has experienced the illegal Turkish invasion and is still under occupation, has been aligned with our partners in the EU from the very beginning. condemning the invasion and offering all kinds of assistance to the people and government of Ukraine.

In his statements after the end of the work of the Council, Mr. Karousos expressed his satisfaction for this historic, as he characteristically mentioned, meeting, in which a general approach was reached to the first legislative proposal for the transfers of the "Fit for 55" Package. In this context, he pointed out that initiatives and proposals of Cyprus have been adopted and included in the legislative texts under discussion, such as the SAF subsidy mechanism and the specific exception for Cyprus in the legislation on alternative fuels.

Source: Announcements