Background information

The scheme is at a second phase of implementation and it is funded by the European Union's Recovery and Resilience Mechanism, under the Recovery and Resilience Plan of Cyprus. It is part of the Cyprus National Energy and Climate Plan, which promotes vehicles with zero or low CO2 emissions as well as means of transport alternative to cars, resulting in reducing the environmental impact of transport and the number of CO2 emissions and air pollutants, in particular.

Content of measure

Potential beneficiaries of the scheme are natural or legal persons (including enterprises, organisations, municipalities, communities, unions, foundations, federations or associations, including NGOs). The scheme covers:

• sponsorship for the purchase of zero-emission CO2 vehicles (pure electric vehicles): the grant for a vehicle for individual use is €10,000, €15,000 for a taxi, €12,000 for beneficiaries with disabilities, €15,000 for a commercial vehicle (3.500 kilos), €12,000 for large families and €40,000 for small buses
• sponsorship for the purchase of an electric bicycle (assisted cycling): the grant is €400, and €1,000 for electric bicycles with built-in battery
• scrapping of an old polluting vehicle in combination with a subsidy for the purchase of low-carbon vehicles (with CO2 emission limits of 50g/km): the grant for a vehicle for individual use is €7,500, €12,000 for a taxi and for €10,000 beneficiaries with disabilities
• the scrapping of an old polluting vehicle in combination with the payment of an amount for a grant for the purchase of an electric bicycle (assisted cycling) and a supplementary one-off amount: the grant is €900, of which €400 is destined for the scrapping and €500 for the supplementary lump sum.
• scrapping of an old polluting vehicle in combination with the granting of bus tickets and a payment of a supplementary lump sum: the grant is €750, of which €250 is destined for the scrapping and the granting of bus tickets and €500 for the supplementary lamp sum.

The total amount available for the implementation of the second phase of the scheme is €10.1 million.

Use of measure

It is expected that 2,518 citizens/organizations/companies will receive the grant by the end of 2023. The funds available are allocated in 17 categories; according to the allocation, €5 million are distributed in the category for the ‘purchase of new zero-emission CO2 vehicles’ with 500 beneficiaries followed by the ‘scrapping of an old polluting vehicle in combination with a subsidy for the purchase of low-carbon vehicles’ with nearly €2 million and 260 beneficiaries.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government	European Funds National funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

The designing of the grant scheme has been performed by the Ministry of Transport, Communications and Work and upon the decision of the members of the Cabinet; no social partner or political party has been invited to participate in any kind of consultation. Similarly, social partners and political parties have no involvement in the implementation of the grant. The Coordination agency is the Directory of Development of the Ministry of Finance and the implementation agency is the Road Transport Department of the Ministry of Transport, Communications and Work.

Views and reactions

No particular reactions have been recorded by social partners or political parties in regards to the issuing of the grant and/or the content.

Sources

• 01 December 2022: Οδηγός σχεδίου προώθησης της ηλεκτροκίνησης στην Κύπρο (www.mcw.gov.cy)
• 08 February 2024: Οδηγός Σχεδίου Προώθησης της Ηλεκτροκίνησης 3η Προκύρυξη (www.mcw.gov.cy)
• 03 October 2024: Χορηγία για αγορά μεταχειρισμένου οχήματος ιδιωτικής χρήσης μηδενικών εκπομπών (www.mcw.gov.cy)
• 21 October 2024: Σχέδιο Προώθησης της Ηλεκτροκίνησης στην Κύπρο – Καθορισμός νέας περιόδου καταχώρησης αιτήσεων (www.mcw.gov.cy)
• 24 October 2024: Σχέδιο Προώθησης της Ηλεκτροκίνησης στην Κύπρο (www.mcw.gov.cy)