The Cyprus Employers and Industrialists Federation (OEB) discusses key developments in energy and environment for 2025 ahead of its April 28, 2026 annual meeting, including market reforms and sustainability strategies.
The Cyprus Employers and Industrialists Federation (OEB) announced key developments in energy and environment for 2025, ahead of its Annual General Meeting scheduled for Tuesday, April 28, 2026. The meeting will be addressed by the President of Cyprus, Mr. Nicos Christodoulides.
OEB highlighted its ongoing role in shaping policies related to energy, environment, and sustainable development to enhance business competitiveness and support a fair green transition.
In 2025, Cyprus made significant progress towards climate neutrality targets, despite increasing energy costs and environmental challenges. Notable developments include the full operation of the Competitive Electricity Market, promoting competition and efficient pricing. The promotion of electricity storage projects was emphasized as vital for system flexibility and renewable energy integration.
The Great Sea Interconnector project remains a strategic priority, with OEB calling for transparency, cost-benefit analysis, and consideration of alternative energy options to maintain competitiveness amid technical, financial, and geopolitical uncertainties.
In natural gas, developments around the FSRU “Prometheus” confirmed its role as a transitional fuel for reducing costs and emissions, emphasizing the need for infrastructure completion for its integration into the energy mix. OEB also highlighted the importance of green hydrogen in decarbonization strategies and the implementation of stricter European directives on building energy performance.
High energy costs continue to challenge business competitiveness. OEB submitted proposals aimed at reducing costs and improving market operation. Regarding environmental issues, the water crisis was identified as a major challenge, prompting calls for structural solutions and water resource management investments. The update of the National Strategy for Climate Change Adaptation was completed, enhancing resilience planning until 2050.
Businesses were advised to adapt to new European sustainability reporting requirements, with simplifications for small and medium enterprises. OEB contributed to the Social Climate Plan debate by submitting proposals for a just transition.
OEB’s 2025 energy and environment strategy included revising the National Energy and Climate Plan, transitioning from Net-Metering to Net-Billing, addressing renewable energy cuts, promoting demand shifting, and supporting electricity storage development. Recommendations also covered the sustainability of the RES & ESE Fund, pricing adjustments, and participation in European strategies such as the Clean Industrial Deal.
Further actions involved proposing new environmental and waste management regulations, participating in the European “TRIERES” program for green hydrogen development, and implementing sustainable solutions in tourism through the circular economy in hotel facilities. Cyprus’s upcoming presidency of the EU Council in the first half of 2026 offers an opportunity to influence European energy policies, with OEB actively supporting this initiative.
