Background information

The Scheme aims to support, develop and upgrade Large Enterprises including their energy upgrade. It is a measure included in the Cyprus Recovery and Resilience Plan (CRP) for the period 2021-2026 and co-funded by the new EU REPowerEU Plan, through the corresponding chapter of CRP, and related to eligible expenditure categories that serve the objectives of the REPowerEU Plan. The specific objectives of the Scheme include the promotion of energy saving investments and energy efficiency in existing installations and production units, the support of large enterprises to improve their technological level, production process, productivity and competitiveness, the establishment of new units and the stimulation of entrepreneurship, the creation of new jobs and the enhancement of the degree of circularity of enterprises.

Content of measure

Beneficiaries of the Scheme are existing or new Large Enterprises, which are established or will be established in Cyprus. Excluded from the Scheme are the enterprises performing activities related with fisheries, the aquaculture sector and the production of wine and vinegar from wine.

The financial support consists of a grant on nine eligible cost categories, applied either in the Manufacturing Sector exclusive or in all sectors, and with different sponsorship rates for new (15%) and established enterprises (40%) for the corresponding cost categories:

Manufacturing Sector

• Construction and/or extension of buildings for the creation of new establishments and/or the diversification of business activities included in the Cypriot Regional Aid Map (RAM);
• Purchase of new machinery and equipment to be used in newly established businesses in RAM or in established enterprises in all regions;
• Purchase of new commercial vehicles to be used in newly established businesses in RAM or in established enterprises in all regions.

All sectors of the economy

• Expenditures on improving the energy performance of the building shell;
• Energy efficiency measures related to production processes in all sectors of the economy;
• Systems for the co-production of energy;
• Renewable Energy Sources Systems;
• Investment in the circular economy.

The maximum total grant amount that can be awarded to a Large Enterprise is €750,000 and €1.5 million for groups of companies.

Use of measure

The total amount allocated to the needs of the Scheme, which is implemented under the Cyprus Recovery and Resilience Plan 2021-2026, during the whole period of implementation amounts to €17 million, of which €10 million come from the new REPowerEU Plan.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Larger corporations	Does not apply to 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 measure was designed by the Ministry of Energy, Commerce and Industry (MECI) without the involvement of social partners. According to an announcement of the Cyprus Employers and Industrialists Federation (OEB), the adoption of a sponsorship scheme exclusively for large enterprises was a request of the organization to MECI since 2020, recognizing their huge contribution to the economy. The responsible agency is the Industry and Technology Service of the MECI, which is responsible for the information and support of applicants, the verification of the formal eligibility requirements, the implementation and general monitoring of the funded projects and evaluation of the measure.

Views and reactions

The Cyprus Employers and Industrialists Federation (OEB) upon the announcement of the measure welcomed the decision of the Cabinet. OEB believes, according to the announcement, that supporting large businesses, especially manufacturing industries, many of which compete with behemoths in the international business environment, will help to enhance their competitiveness with return benefits to the Cypriot economy.

Sources

• 02 February 2024: Σχέδιο χορηγιών για την ενεργειακή αναβάθμιση και ανταγωνιστικότητα μεγάλων επιχειρήσεων (www.industry.gov.cy)