The condition of nature and ecosystems remains a source of concern in Cyprus, where environmental degradation is creating significant risks for economic growth and competitiveness.
According to the European Commission's 2026 Country Report for Cyprus, the island's economy is particularly dependent on ecosystem services, with 50% of gross value added highly dependent on nature, compared with an EU average of 44%.
The challenge, the Commission says, is to increase investment in biodiversity and ecosystem restoration.
The findings are contained in the Commission's annual assessment of Cyprus' economic and social performance, prepared as part of the EU's policy coordination process.
The report concludes that Cyprus remains far from the level of investment needed to protect biodiversity and ecosystems.
While annual biodiversity and ecosystem investment needs for the period 2021-2027 are estimated at €149 million, current annual financing is estimated at only €54 million.
"To achieve environmental objectives relating to the protection and restoration of biodiversity and ecosystems, and to implement other related horizontal measures, Cyprus' investment gap is estimated at €96 million per year, equivalent to 0.4% of GDP," the report notes.
Lack of progress
According to the report, Cyprus hosts 42 habitat types and 55 species protected under the EU Habitats Directive.
In 2018, 45.2% of assessed habitats were considered to be in good conservation status, while 63.9% of protected species were reported to be in good conservation status. Both figures exceed the EU average.
The principal pressures and threats affecting habitats and species in Cyprus are linked to:
- Agriculture
- Infrastructure development
- Development and operation of transport systems
- Natural processes
Despite these relatively positive conservation indicators, the Commission observes that there is a broader failure to improve environmental conditions.
"There is a general lack of progress in maintaining or restoring the favourable conservation status of species and habitats protected under the nature directives," the report states.
Risks to the economy
The degradation of nature poses significant risks to the economy and the country's competitiveness.
According to the Commission, Cyprus exhibits a particularly high level of direct dependence on ecosystem services.
"The Cypriot economy has a particularly high level of direct dependence on ecosystem services, with 50% of its gross value added being highly dependent on them, compared with an EU average of 44%."
Several sectors are heavily reliant on healthy ecosystems, including:
- Agriculture
- Forestry
- Fisheries
- Construction
- Water supply services
- Mining and quarrying
- Healthcare
- Transport
The report notes that 100% of the gross value added generated by these sectors depends directly on ecosystem services.
The transport sector is singled out as being even more dependent on ecosystem services than comparable sectors in other EU member states.
In addition, Cyprus' supply chains demonstrate a particularly high degree of ecosystem dependence.
According to the report, 32% of Cyprus' gross value added depends indirectly on ecosystem services through supply chains, compared with an EU average of 22%.
The Commission warns that failure to preserve ecosystems' capacity to provide services could result in substantial costs or even production disruptions in these sectors.
It argues that protecting and restoring key ecosystems would help safeguard their long-term competitiveness.
Protected areas
The Commission says targeted action is required to protect and restore nature.
In 2022, 29.5% of land areas under the effective control of the Republic of Cyprus government were covered by the Natura 2000 network.
Including other nationally designated protected areas, Cyprus currently protects:
- 37.8% of its land area
- 8.6% of its marine area
National Restoration Plan in preparation
The EU Nature Restoration Regulation (2024/1991), adopted on 24 June 2024, requires the restoration of at least 20% of the EU's land and sea areas by 2030 and the restoration of all ecosystems in need of recovery by 2050.
As with all member states, Cyprus must prepare and submit a National Restoration Plan to the European Commission by September.
The plan will include:
- Identification of areas to be restored
- Description of restoration measures
- Actions covering terrestrial, marine, river, agricultural, urban and forest ecosystems
In a parliamentary reply dated 19 August 2025, former Agriculture Minister Maria Panayiotou told former Green Party MP and former House Environment Committee chairman Charalambos Theopemptou that the National Restoration Plan would initially prioritise restoration measures within the Natura 2000 network.
The European Commission will then have six months to assess the plan after receiving it.
Following the Commission's observations, Cyprus will have a further six months to finalise, publish and formally submit the plan.
As a result, implementation of the restoration measures is expected to begin no later than September 2027.
