Understanding the Upcoming Carbon Tax on Water in Cyprus
In a move to promote environmental sustainability, the Nicosia Water Board has announced an impending carbon tax on water consumption. Set at one cent per cubic meter, this green tax aligns with the initiatives outlined in the Cyprus Recovery and Resilience Plan and is set to take effect in the near future. The announcement coincided with the celebration of international World Water Day, underscoring the importance of water conservation and management in the face of climate change.
The tax will apply to all consumers, translating to a minimal cost increase given that one cubic meter contains 1,000 liters of water. To put this into perspective, a five-minute shower utilizes approximately 75–90 liters, while longer showers can use up to 240 liters. Despite the announcement, the water board has not specified when the new charge will be implemented. They emphasize that before passing additional costs to consumers, efforts must be made to reduce operational expenses of desalination plants, which are currently powered by conventional energy sources.
The water board’s statement highlighted the environmental impact of desalination plants and urged the government to mandate private operators to shift towards renewable energy sources for electricity production. Desalination is an essential process in Cyprus due to the island’s limited natural water resources. However, it is also energy-intensive and reliant on fossil fuels, contributing significantly to greenhouse gas emissions.
World Water Day’s theme this year, “Water for Prosperity and Peace,” brought attention to the importance of transboundary water cooperation. The water board suggested that in Cyprus, where a ceasefire line divides two major communities, a bi-communal agreement on drinking water provision could serve as a confidence-building measure.
Additionally, the water board addressed concerns over potential drought conditions following a mild winter in 2023-2024. They reported that actions are being taken to increase storage capacity to ensure an uninterrupted water supply. Current reservoir levels are at 69 percent capacity, a decrease from previous years, highlighting the urgency of efficient water management strategies.
