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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Cyprus

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN CYPRUS

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INTERNATIONAL COOPERATION AND TRADE

Decision-Making: Coordinating Bodies  

The Planning Bureau is in charge of the preparation of five-year Strategic Development Plans for the balanced development of the island’s economy and has responsibility for the broader coordination of the European Union accession process. 

Decision-Making: Legislation and Regulations  

No information available. 

Decision-Making: Strategies, Policies and Plans  

No information available. 

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

No information available. 

Status   

In view of the accession of Cyprus to the EU, the Cypriot economy is oriented to a more liberal one, with better macroeconomic returns and significant environmental benefits. 

Challenges  

No information available.  

Capacity-building, Education, Training and Awareness-raising   

No information available.  

Information   

No information available.  

Research and Technologies   

No information available.  

Financing   

No information available.  

Cooperation

No information available.  

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies    

See under Chapters Energy and Transport. 

Decision-Making: Legislation and Regulations 

See under Chapters Energy and Transport. 

Decision-Making: Strategies, Policies and Plans  

See under Chapters Energy and Transport. 

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

See under Chapters Energy and Transport. 

Status   

No information available. 

Challenges  

No information available. 

Capacity-building, Education, Training and Awareness-raising   

See under Chapter Energy. 

Information   

No information available. 

Research and Technologies   

See under Chapters Energy and Transport. 

Financing   

See under Chapters Energy and Transport. 

Cooperation  

No information available. 

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FINANCING

Decision-Making: Coordinating Bodies    

No information available. 

Decision-Making: Legislation and Regulations  

No information available. 

Decision-Making: Strategies, Policies and Plans  

No information available. 

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

See under the heading Financing in the various chapters of this profile.

Status   

No information available.

Challenges  

No information available.

Capacity-building, Education, Training and Awareness-raising   

No information available.

Information   

No information available.

Research and Technologies   

No information available.

Financing   

No information available.

Cooperation  

No information available.

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TECHNOLOGY

Transfer of Environmentally Sound Technology

Decision-Making: Coordinating Bodies    

No information available.  

Decision-Making: Legislation and Regulations 

See under Chapter Science.

Decision-Making: Strategies, Policies and Plans  

No information available.  

Decision-Making: Major Groups Involvement  

See under Chapter Science.

Programmes and Projects   

See under Chapter Science.

Status   

No information available.  

Challenges  

No information available.  

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

No information available. 

Research and Technologies   

See under Chapter Science.

Financing   

No information available. 

Cooperation  

See under Chapter Science.

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Biotechnology

Decision-Making: Coordinating Bodies    

See under Decision-Making: Coordinating Bodies.

Decision-Making: Legislation and Regulations 

Law No. 150(I)/2001 established a national Bioethics Committee. In 2001, a bill was submitted to the House of Representatives providing for the control of the import, supply to the market and deliberate release into the environment of GMOs.

The Ministry of Labour and Social Insurance (Department of Labour Inspection), enforces the legislation on health and safety at work, which, among others, covers risks from biological agents and genetically modified microorganisms (GMMs). New Regulations are being prepared under the Safety and Health at Work Law to cover the contained use of GMMs in Cyprus; they are expected to be enacted early in 2002. The 1998 Seeds Law covers the registration of genetically modified seeds.

The Animals (Scientific Experiments) Law of 1995 (No. 30(I)/95), and the Animals Health and Welfare Law (No. 46(I)/94), provide the framework legislation in the field of animal experiments. Implementing Regulations (No.18/2000) under the Animals (Scientific Experiments) Law, were passed in 2000. A new Law (No.25 (III)/1999) ratifying the Amended Protocol to the European Convention for the Protection of Vertebrate Animals Used for Experimental and Other Purposes was also passed. See also under Status. 

Decision-Making: Strategies, Policies and Plans   

No information available.  

Decision-Making: Major Groups Involvement  

No information available.  

Programmes and Projects   

See under Capacity-Building, Education, Training and Awareness-Raising and Research and Technologies.  

Status   

There is only one laboratory in Cyprus carrying out animal experiments. An advisory committee takes ethics into account when issuing permits and a dual-licensing system exists, thus requiring both personnel and the project to be licensed. Personnel must be professionally trained in order to be issued with a permit. Dogs and cats are not used for experimentation in Cyprus. It is prohibited to test cosmetics on animals. The use of GMMs in Cyprus, is presently restricted to medical diagnostic purposes. The Ministry of Health is proceeding with the upgrading of the necessary equipment. 

Challenges  

No information available.  

Capacity-building, Education, Training and Awareness-raising   

Know-how is being built up in the Institute of Genetics and the Agricultural Research Institute. The Ministry of Health is proceeding with the training of the personnel.  

Information   

Currently all experiments with animals are reported and published in an annual report. The Ministry of Health is  to establish a data bank with the results of the chemical and microbiological analyses. 

Research and Technologies   

Experimental work in the field of genetics is carried out in Cyprus, and a molecular biology unit is being set up.

Financing   

No information available.  

Cooperation  

Cyprus is currently preparing to ratify the Cartagena Protocol on Biosafety.

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INDUSTRY

Decision-Making: Coordinating Bodies    

The Ministry of Commerce, Industry and Tourism deals with: industrial estates; energy management and conservation; exploitation of new and renewable sources of energy; the management of a grants scheme which assists manufacturing industries in installing waste treatment systems; and accreditation and EMAS. 

Decision-Making: Legislation and Regulations 

As far as quarrying activity is concerned, the Mines and Quarries regulations refer to the rehabilitation of affected areas in general; it is now required to submit a plan for rehabilitation of areas affected. The Town and Country Planning Law requires a planning permit, which is followed by a quarrying license, in order to open up new areas. In addition, an Environmental Impact Assessment is necessary before any new quarrying activity is licensed.

The Cyprus Standards and Quality Control Organization has in recent years dealt with issues relating to the Life Cycle Analysis of materials (LCA) as a tool for their comparative evaluation, especially in the packaging field.

Enforcement of legislation regarding the control of industrial effluent and emissions under the Water Pollution Control and the Atmospheric Pollution Control laws is carried out through a system of inspection of premises and installations. Other inspectorates cover marine environment protection issues; public health issues; and the control of mining and quarrying.

A bill was submitted to the House of Representatives in November 2001, providing the restructuring and independence of the Cyprus Organization of Standards and Control of Quality into a new Standardization and Accreditation Organization. A verification organization was also established.

The broader issue of risks and accidents from industrial sources is covered by the Health and Safety at Work Law, which is in line with the ILO Safety and Health Convention and the relevant legislation of the European Union. The land use planning aspects are already adequately covered by the 1990 Town and Country Planning Law. The final draft of the relevant regulations to be issued under the Safety and Health at Work Law has been completed. Submission to the House of Representatives is planned early in 2002. The relevant UN/ECE Convention is planned to be ratified.

Control of noise is pursued through the general provisions of the Protection of Common Peace Law and land use planning instruments. A draft Bill on Noise, includes provisions to empower the competent authorities to issue mandatory abatement notices (orders), and for the adoption of ambient noise exposure levels, the preparation of programmes for the reduction of noise exposure, the establishment of noise abatement zones, etc. The first legal draft of a bill to regulate the level of noise emitted from household appliances was prepared, planned to be submitted to the House of Representatives in the middle of 2002. Noise emission levels from construction plant and equipment used outdoors will be adopted by the end of 2002, with regulations based on a broader framework law. 

Decision-Making: Strategies, Policies and Plans  

The State provides Industrial Areas with the necessary infrastructure (roads, water supply, power supply, telephone network) and leases the land to industries. The Government has adopted a subsidy scheme to manufacturing units for the installation of industrial pollution control systems. The scheme covers systems for the processing of liquid/solid waste, recycling or reuse systems within the manufacturing process, and systems for the control of atmospheric pollution.

Basic elements of the Government’s strategy are the expansion of the existing markets for the export of products and the technological upgrading of the industrial units.

Basic parameters of the environment/industry relationship are: the improved management of resources, aiming at their rational use; the use of information, in order for the consumer to have a better possibility of choice and for the public to acquire more trust in industrial activities and controls, as well as in the quality of products; and, the adoption of standards for productive procedures and products.

Decision-Making: Major Groups involvement   

No information available.  

Programmes and Projects   

The Cyprus Organization of Standards and Control of Quality is already involved in Quality Systems Certification (ISO-9000) and is moving towards certification of an environmental management system (ISO-14000 and EMAS). In August 2000, the Council of Ministers decided the establishment of a private certification body.

A ‘LIFE’-financed project is currently being completed, aimed at establishing the mechanism and preparation for full implementation of EMAS. See also under Status.  

Status   

The contemporary structure of the Cypriot economy placed emphasis on tourism and the construction and agriculture sectors, making extensive use of the natural resources. Other economic activities, particularly those relating to the services sector, are now substantially reinforced.

The economy of Cyprus is dominated by small enterprises. The overwhelming majority of enterprises (99,9%) employ less than 250 persons, whereas 95% employ less than 10 persons. The basic point of reference is the small size of the industrial units that pollute the environment. 

In the last years, the industries of Cyprus and other organizations have displayed a particular interest in the implementation of quality systems. The Cyprus Standards and Quality Control Organization, currently in charge of accreditation issues and product control matters, has promoted an enlarged definition of quality that, by its nature, includes environmental parameters. Furthermore, interest in promoting the Eco-label is being observed both on the part of consumers and of manufacturers due to the pressure created by competition because of the imported products bearing the label.

Over the last years, significant progress has been made in many sectors, particularly through the preparation and implementation of a new Industrial Policy, including the following schemes and incentives: the establishment of a Center for Technology, Research and Development for carrying out applied research and development in specific high-tech fields; provision of grants for the technological upgrading of industrial units investing in new machinery and equipment with the aim of increasing their productivity and improving the quality of their products; undertaking of studies for the adoption of standards e.g. ISO 9000, CE, HACCP, Eco-labelling etc; purchase of consultancy services for the improvement of technology, environment, organization, human resources etc.; operation of a Technological Information Center by the Institute of Technology to facilitate the transfer of technology to SMEs; full participation of Cyprus, as from 1999, in the Fifth Framework Programme for Research, Technological Development and Demonstration (1998-2002) of the European Union, which provides a line of action in favour of SMEs. 

Challenges  

Noise and congestion from intensive development pose growing environmental problems in built-up areas, the principal cause being traffic by various modes and entertainment and construction activities.    

Capacity-building, Education, Training and Awareness-raising   

See under Status. 

Information   

See under Status. 

Research and Technologies   

See under Status. 

Financing   

Implementation of EMAS and Eco-label will be covered by the framework Bill on the Environment and related Regulations and the new Law on Standardization and Accreditation. Both texts will be enacted during 2002.

Cooperation  

See under Decision-Making: Legislation and Regulations.

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TRANSPORT

Decision-Making: Coordinating Bodies    

The Ministry of Communications and Works is responsible for: the enforcement of International Civil Aviation standards on noise from aircraft; motor vehicles inspection; and Type Approval for vehicles.

Decision-Making: Legislation and Regulations  

A new bill on fuel quality specifications was prepared. A decision to upgrade the oil refinery at Larnaca was taken, following an agreement between the Government and Larnaca Municipality.

A framework Law on Type Approval of Motor Vehicles (No. 18(I)/2000) was approved. It provides the enactment of regulations and orders for conformity assessment, which will enable Cyprus to request an EU certificate of conformity for all imported motor vehicles.

The Atmospheric Pollution Control Law (terminals, petrol stations) and the framework law for motor vehicles (trucks) regulate VOC emissions from the storage/distribution of petrol. A Notification (No.1998/99) was issued under the Atmospheric Pollution Control Law, according to which all existing service stations are obliged to install the necessary gas retention equipment by the end of 2002. All new service stations must install this equipment during construction. Regarding VOC emissions from the storage of petrol, the operating conditions under the same law were issued in March 2001, obliging terminals to install the necessary equipment also by the end of 2002.

The Atmospheric Pollution Control Law also partially covers VOC emissions from the use of organic solvents. Its associated Regulation (No.53/93), in force from January 1994, defines the registration licensing process that includes some activities that use organic solvents.

General provisions for the control of pollution from noise from motor vehicles exist in the Traffic Regulations but, with the establishment of new vehicle inspection centres, new regulations are now being prepared which would adopt European standards. Provisions for regulating noise from civil airplanes are included in the Air Navigation Regulations of 1988, set according to the International Civil Aviation Organization (ICAO) standards.

See also under Status. 

Decision-Making: Strategies, Policies and Plans   

No information available.  

Decision-Making: Major Groups Involvement  

No information available.  

Programmes and Projects   

At the transport sector, the measures promoted include a programme for a network of bicycle lanes; better traffic management; production of improved fuel, particularly for diesel engines; the establishment of an E- type approval system and vehicle inspection; and encouraging public transport.

A ‘LIFE’- financed project is currently under way to enhance the motor vehicles emissions control system, infrastructure and know- how. See also under Status and Research and Technologies. 

Status   

As of October 2001, systematic motor vehicles emissions control has been established though private-run but state-licensed and controlled inspection centres. During the first stage of implementation, only high-risk vehicles are inspected, e.g. public use vehicles, commercial vehicles and vehicles manufactured more than 20 years ago.

In 2000, the Department of Electrical and Mechanical Services completed an assessment of the types and brands of motor vehicles in circulation as far as their capacity to run on unleaded fuel is concerned. On the basis of the results, only 4% of the vehicles (12,000) cannot use unleaded 98 RON. Another 10 000 will require only slight routine modifications. They are mostly models produced from 1970 to 1991.

The tankers with no bottom-loading equipment will be gradually replaced or modified by the end of 2002. No new tankers are imported without the appropriate equipment. 

Challenges  

No information available.  

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

The major installations concerned with VOC emissions (dry cleaning, printing and paint installations) have been identified and an inventory of the rest of the solvent-using activities is currently being prepared. 

Research and Technologies   

A traffic management and public transport enhancement study for the Nicosia area was prepared in 2001. The study analyses and suggests measures for the Nicosia public transport system.

After a relevant study of the current system of car registration/circulation fees, a restructuring was proposed, for encouraging the use of vehicles with low CO2 emissions. The proposal is under consideration and is expected to be adopted by the end 2002. 

Financing   

No information available.  

Cooperation  

No information available.  

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SUSTAINABLE TOURISM

Decision-Making: Coordinating Bodies    

The Cyprus Tourism Organization (CTO) is responsible for tourism development, promotes agrotourism and is the  coordinator of the BLUE FLAGS scheme in Cyprus.

Decision-Making: Legislation and Regulations  

According to the legislation regarding Hotels and Tourist Establishments, the installation of biological systems for the treatment of wastes is a requirement for all hotel units in coastal areas. A Code of Environmental Behaviour was issued, which includes general principles and specific guidelines for the environmental management of tourist enterprises, as well as for the behaviour of the public and the visitors. 

Decision-Making: Strategies, Policies and Plans  

The need for a “new” perspective in tourism policy emerged in the 1980s, mainly because of the socially, ecologically and culturally negative impacts of tourism. The fundamental difference from the previous perceptions of tourist development lies in the fact that, according to the modern approach to tourism, it should respect and be kept within the limits of the local social, cultural, economic and environmental particularities and conditions.

The Cyprus policies aim at the improvement of tourism management and the protection of coastal and mountainous regions; better information to tourists regarding the environment; and an improvement of tourist services, so that there is less impact on the environment. The CTO has cooperated with other agencies for the implementation of environmental protection measures, which will benefit tourism, through the preservation of habitats, the protection of the quality of waters and the control of waste disposal.

The new Strategy on Tourism, has defined the level of the sector’s growth, formulated the general and the special objectives for the sector, and determined the ways to achieve the objectives on a balanced basis. The Strategy refers to the upgrading of the quality of services provided, with the major goal of attracting tourists of higher income.

During the preparation of the new Strategy, the following parameters were taken into consideration: the need for the maintenance and protection of the natural environment; the need to ensure a more balanced tourist development in all areas of Cyprus; and, the improvement, upgrading, and enrichment of the tourist product, the improvement of infrastructure, the launching of new forms of tourism and the adequate protection of archaeological sites.

Decision-Making: Major Groups Involvement  

No information available.  

Programmes and Projects   

A series of activities, which aim at the achievement of sustainable tourist development have been initiated. Various forms of tourism are developing in order to enrich the market, such as cultural tourism, agrotourism, and mild forms of tourism, athletic tourism, and convention tourism. The encouragement of specialized forms of tourism is aimed at lessening pressures on the coast as well as at making use of other activities or special features of the inland region.

The programme for the development of agrotourism, which has been implemented since 1992, contributes to the diversification of the tourist product, the attraction of visitors with special interests, the preservation and protection of the natural and built environment of the inland, as well as the highlighting of the cultural traditions and the architectural heritage of the country. Within the framework of the programme, financial incentives are granted to the owners of buildings of traditional architecture, for their conversion to traditional tourist lodgings, restaurants, workshops and cultural spaces. Projects for village squares and other interesting sites, as well as public buildings in 50 inland villages are also funded. The proprietors of agro-tourist units have become organized in a co-operative, which runs a Central Reservations Office and has proceeded to the publication of an elaborate and very interesting catalogue.

Funded by the CTO, the Department of Forests has constructed Nature Trails as well as an Information Centre in Troodos, which provides information to the visitors on the environmental significance and value of the region. Nature study trails have also been created in other forest regions in Cyprus, such as in Akamas and Cape Greco, as well as in regions outside forests.

The promotion and development of the mountainous Troodos region, based on the safeguarding of the environment through tourist development was also pursued. 

Status

The implementation of the Master Plan has already begun.

Tourism constitutes a major factor for the economic development of Cyprus.

Sustainable tourism depends on a clean environment with sufficient natural resources for the satisfaction of the needs of a large number of people, temporarily residing in regions that are often sun-baked and arid. The key sustainability issues refer to the handling of problems in existing tourist areas, and to environmental issues related to other tourist installations (theme parks, golf courts, marinas, etc.). 

Challenges  

No information available. 

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

No information available. 

Research and Technologies   

No information available. 

Financing   

Designs and projects of a Master Plan for the protection, upgrading and promotion of archaeological sites and ancient monuments have been funded by the CTO and the Department of Antiquities.See also under Programmes and Projects

Cooperation  

No information available.    

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