This Decision is addressed to the Republic of Cyprus.

4.The release of instalments in accordance with the Loan Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Cyprus has satisfactorily fulfilled the additional milestones and targets covered by the loan and identified in relation to the implementation of the recovery and resilience plan. To be eligible for payment, the additional milestones and targets covered by the loan shall be completed no later than 31 August 2026.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Loan Agreement provided for in Article 15(2) of Regulation (EU) 2021/241. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

2.The loan support shall be made available by the Commission to Cyprus in instalments in accordance with the Annex. An amount of EUR 26 041 600 shall be made available as a pre-financing payment, equal to 13% of the loan. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

1.The Union shall make available to Cyprus a loan amounting to a maximum of EUR 200 320 000.

4.The release of instalments in accordance with the Financing Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Cyprus has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan. Subject to the entry into force of the legal commitments referred to in paragraph 1, to be eligible for payment, milestones and targets shall be completed no later than 31 August 2026.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

2.The Union financial contribution shall be made available by the Commission to Cyprus in instalments in accordance with the Annex. An amount of EUR 130 772 986 shall be made available as a pre-financing payment, equal to 13% of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

1.The Union shall make available to Cyprus a financial contribution in the form of non-repayable support amounting to EUR 1 005 946 047. An amount of EUR 818 213 837 shall be available to be legally committed by 31 December 2022. Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 calculating an amount for Cyprus equal to or more than this amount, a further amount of EUR 187 732 210 shall be available to be legally committed from 1 January 2023 until 31 December 2023.

The assessment of the recovery and resilience plan of Cyprus on the basis of the criteria provided for by Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the recovery and resilience plan, the arrangements and timetable for monitoring and implementation of the recovery and resilience plan, including the relevant milestones and targets and the additional milestones and targets related to the payment of the loan, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 1 Approval of the assessment of the recovery and resilience plan

(60)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any other Union programme than Regulation (EU) 2021/241 or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

(59)Cyprus has requested pre-financing of 13% of the financial contribution and of 13% of the loan. That amount should be made available to Cyprus subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241 and the Loan Agreement provided for in Article 15(2) of that Regulation.

(58)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053. The support should be paid in instalments once Cyprus has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan.

(57)Furthermore, in order to support additional reforms and investments, Cyprus has requested loan support. The maximum volume of the loan requested by Cyprus is less than 6,8% of its 2019 Gross National Income in current prices. The amount of the estimated total costs of the recovery and resilience plan is higher to the combined financial contribution available for Cyprus and requested loan support.

(56)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Cyprus is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Cyprus should be made available now for a legal commitment by 31 December 2022. Where necessary following the updated maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution without undue delay.

(55)The estimated total cost of the recovery and resilience plan of Cyprus is EUR 1 206 400 000. As the recovery and resilience plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the recovery and resilience plan is higher than the maximum financial contribution available for Cyprus, the financial contribution allocated for the Cypriot recovery and resilience plan should be equal to the total amount of the financial contribution available to Cyprus.

(54)Following the positive assessment of the Commission concerning the Cypriot recovery and resilience plan with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the plan, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the plan in the form of non-repayable financial and loan support.

(53)A coordination process with all relevant stakeholders, including social partners and civil society, is expected to take place also for the implementation phase of the plan. To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan.

(52)Based on the summary of the consultation process included in the plan, all relevant stakeholders such as social partners, civil society organisations and youth organisations have been consulted in the preparation phase of the plan in accordance with the national legal framework. Within the scope of their responsibilities, the different Ministries, governmental services and local authorities have been involved at an early stage and in numerous steps in the elaboration of the plan. The Parliament has been regularly informed about the content of the plan. Furthermore, the Cyprus Economy and Competitiveness Council, equivalent to a national productivity board, has been consulted. Following the consultation of all relevant stakeholders, part of the initially planned reforms and investments have been adapted or removed from the plan.

(51)Cyprus has included two cross-border projects in its plan for an electricity interconnector and submarine cables for data connectivity. Both projects have a cross-border element with Greece. First, the construction of the EuroAsia interconnector aims to ensure security of supply and more competitive wholesale electricity prices and to enable the increased use of electricity from cleaner sources, in particular renewables, by connecting the electricity network of Cyprus to the Union continental system through the Greek network in Crete. This is part of a broader investment building a cross-border interconnector with a total length of 1 208 km between Crete, Cyprus and Israel. Second, for the submarine cables, the project aims at creating high-capacity resilient backbone internet connectivity for Cyprus through a new submarine link for data connectivity between Cyprus and Greece. The deployment of a new separate backbone route between Cyprus and Greece is expected to support connectivity in Cyprus. It is also expected to have a positive impact on the available capacity and the commercial offers of backbone connectivity needed to provide very-high-speed services to end-users. Finally, it is expected to offer higher performance compared to existing dated cables.

(50)The plan includes a security-self assessment for investments in digital capacities and connectivity. As regards investments in connectivity, the plan identifies the relevant security issues and associated risks and identifies mitigating measures to be enacted for each of them based on the common objective criteria included in the EU toolbox for Cybersecurity of 5G networks.

(49)The plan contains a series of measures across several components that are expected to contribute to addressing the challenges in the area of gender equality and equal opportunities for all. Particularly relevant measures include those that aim at improving the access to affordable quality early childhood education and care and long-term care as well as to promote flexible working arrangements facilitating labour market activation for people with caring responsibilities, particularly women, social inclusion and the reduction of socio-economic disadvantages. Challenges regarding female entrepreneurship or financial illiteracy of older women are also addressed. Support for young people not in employment, education or training is expected to benefit young people from vulnerable backgrounds, including with migration backgrounds. Throughout the plan, needs of persons with disabilities are taken into account and a quantitive target for the improvement of energy performance in households with persons with disabilities is included.

(48)Reforms and investments presented in the Cypriot recovery and resilience plan are complementary to each other. They are based on a comprehensive growth plan, which ensures its coherence towards contributing to smart, inclusive and sustainable economic development in the future. The five main policy axes of the Plan, “Resilient and Effective Health System, Enhanced Civil Protection”, “Climate neutrality, energy efficiency and renewable energy penetration”, “Strengthening the resilience and competitiveness of the economy”, “Towards a digital era”, and “Labour market, social protection, education and human capital” are interlinked and mutually reinforcing. They contain measures related to the digital transformation, which are key enablers for the green and circular transition of the Cypriot economy. The plan also contains reforms that reinforce planned investments, such as in the water management sector and a tax reform to incentivise emission reductions and green investments. The policy axis “Strengthening the resilience and competitiveness of the economy” involves public investment to boost competitiveness, support productivity and long-run growth and to create new jobs, supported by reforms to improve the institutional framework and hence the business environment. The policy axis “Labour market, social protection, education and human capital” contributes to enabling the green and digital transitions by improving the education and skills development system at all levels, thus equipping the Cypriot society with the necessary skills, ensuring that digital and green transitions should be fair by prioritising sustainable job creation, in particular for young people, as well as investments in social care services, while the policy axis “Resilient and Effective Health System, Enhanced Civil Protection” aims at universal access to high quality and effective health services, including digital. In order to promote wider coherence across instruments, notably with the European cohesion policy funds, a balanced territorial allocation of resources is encouraged.

(47)In accordance with Article 19(3), point (k) and section 2.11 of Annex V to Regulation (EU) 2021/241, the plan includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(46)The internal control system is based on robust processes and structures. Roles and responsibilities of the actors for controls and audits are clear, relevant control functions are appropriately segregated and the independence of actors performing audits is ensured. The actors responsible for controls have the legal empowerment and administrative capacity to exercise their planned roles and tasks. The procedures described in the plan for controls and audits have entered into force and responsibilities of the bodies involved have been defined by means of the decision of the Council of Ministers approving the plan. The designated audit bodies are the Audit Office of the Republic of Cyprus and the Internal Audit Service of the Republic of Cyprus. They are mandated to conduct ex-post audits to check whether implementing bodies carry out procedures to prevent, detect and correct fraud, corruption and conflicts of interest, when using the funds provided under Regulation (EU) 2021/241. Moreover, there are control arrangements at several levels aimed at avoiding double funding from other Union programmes as well as compliance with applicable rules.

(45)The control and audit system developed by Cyprus is coherently designed to meet the requirements of Regulation (EU) 2021/241. In particular, pending development of a dedicated Monitoring Information System for management and monitoring of the plan in line with Article 22(2), point (d) of Regulation (EU) 2021/241, an adequate transitory repository system should be set up. A transitory repository system or the dedicated Monitoring Information System should record and store the relevant data related to the implementation of the recovery and resilience plan, in particular on the achievement of milestones and targets, data on final recipients, contractors, subcontractors and beneficial owners in line with Article 22(2) point (d) of Regulation (EU) 2021/241. In accordance with Article 20(5), point (e) of Regulation (EU) 2021/241, Cyprus should implement the transitory repository system or the dedicated Monitoring Information System with the required functionalities in order to comply with Article 22 of that Regulation, by confirming the completion of its implementation with the submission of the first payment request. A dedicated audit of the system should attest that it has the required functionalities in line with Article 22(2), point (d) of Regulation (EU) 2021/241.

(44)In accordance with Article 19(3), point (j) and section 2.10 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan and the additional measures contained in this Decision are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with Union law, including for preventing, detecting and correcting corruption, fraud and conflicts of interests, and for protecting the Union finances in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

(43)For the majority of the measures, the costing information provided is rather detailed, the methodology is well explained with calculations that are easy to follow and supported by evidence. The information provided suggests that costs would be in line with the nature and type of the envisaged reforms and investments, thus supporting their plausibility. However, a small amount of the costs were assessed as reasonable and plausible only up to a medium extent. Finally, the estimated total cost of the recovery and resilience plan is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

(42)In accordance with Article 19(3), point (i) and section 2.9 of Annex V to Regulation (EU) 2021/241, the justification provided in the plan on the amount of the estimated total costs of the recovery and resilience plan is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(41)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument to assist Member States in the implementation of their plan.

(40)The milestones and targets of the Cypriot plan constitute an appropriate system for monitoring the plan’s implementation. They are sufficiently clear, realistic and comprehensive to ensure that their completion can be traced and verified and the proposed indicators for those milestones and targets are relevant, acceptable and robust. Milestones and targets are also relevant for measures already completed which are eligible according to Article 17(2) of Regulation (EU) 2021/241. The satisfactory fulfilment of those milestones and targets over time is required to justify a disbursement request. The verification mechanisms, data collection and responsibilities described by the Cypriot authorities appear sufficiently robust to justify in an adequate manner the disbursement requests once the milestones and targets are assessed as completed.

(39)The Monitoring Committee, chaired by the Director General of the Directorate General for European Programmes, Coordination and Development (‘DG EPCD’) and attended by the Directors-General of Ministries and Deputy Ministries involved in the plan, is responsible for centrally monitoring progress in implementation. The overall responsibility for the monitoring and implementation of the recovery and resilience plan is assigned to the Directorate for Recovery and Resilience of DG EPCD, which is the Coordinating Authority. Its role consists in coordinating the implementation of the measures, certifying the achievement of the milestones and targets, drafting progress reports, and liaising with the Commission, including submitting payment requests under Regulation (EU) 2021/241. In that role it is assisted by two specialised monitoring bodies that would certify the achievement of the milestones and targets for the measures in the plan that require specialised input. The implementation of the various investments and reforms in the plan is the responsibility of the implementing bodies.

(38)In accordance with Article 19(3), point (h) and section 2.8 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan are adequate (Rating A) to ensure effective monitoring and implementation of the recovery and resilience plan, including the envisaged timetable, milestones and targets, and the related indicators.

(37)Lasting impact of the plan can also be enhanced through synergies between the plan and other programmes financed by the cohesion policy funds, notably by addressing in a substantive manner territorial challenges and promoting a balanced development.

(36)The implementation of reforms and investments envisaged in the Cypriot plan is expected to bring lasting changes in the education and training system and the labour market. The plan includes major reforms in the education system, such as introducing a new system for teacher and school evaluation, extending free compulsory preschool education and adapting the curricula of higher and secondary education according to the needs of the labour market. The plan also contains the provision of trainings to foster the digital skills of students, employed persons and the unemployed. Furthermore, the plan includes the development of a comprehensive national strategy to address skills mismatches as well as the preparation of a national strategy for early childhood education and care. These measures are expected to improve the quality of education and training for all ages and students’ performance and make better connections between the education system and the labour market.

(35)The plan presents a series of measures with the aim to contribute to the digital transition and to addressing the low level of digital public services. The measures included are expected to ensure coverage with very high-capacity broadband, fixed and wireless, including mobile, that is to say 5G, for 100% of the population living in organised communities, including deployment of 5G along the main terrestrial corridors, and enabling universal and affordable access to Gigabit connectivity in all urban and rural areas, including 5G connectivity. The plan aims also at promoting e-government with a set of reforms and investments. Digital projects, such as the digital transformation of courts, smart cities and digitalising the law making process in combination with projects for improving the management system, evaluation and recruitment of the staff in the public administration and an overhaul of the local authorities are expected to make a structural and lasting change in the functioning of the public administration and justice system, which should ultimately improve the business environment. The establishment of an independent authority to coordinate and oversee measures to fight corruption is a key element of the plan concerning structural change in institutions.

(34)In accordance with Article 19(3), point (g) and section 2.7 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a lasting impact on Cyprus to a large extent (Rating A).

(33)Almost each component includes measures directly supporting the digital transition or addressing related challenges. The most important contributions come from components dedicated to connectivity infrastructure and the digitalisation of the public sector, followed by the three components addressing e-justice, fiscal and financial stability and the support of digital skills. Therefore, measures related to digital transition, or to addressing the challenges resulting from it, are spread out throughout the plan. They are expected to contribute to the digital transformation of several economic and social sectors, such as the education or health sector, and to addressing the country specific challenges resulting from the digital transition.

(32)With a significant share of the overall budget and a prominence of digital aspects across the majority of its components, the recovery and resilience plan proposed by Cyprus puts a strong emphasis on the digital transition and addressing the challenges resulting from it across all sectors.

(31)In accordance with Article 19(3), point (f) and section 2.6 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 23% of the plan’s total allocation calculated in accordance with the methodology of Annex VII to Regulation (EU) 2021/241.

(30)The implementation of the plan is also expected to contribute to the achievement of the Union’s objectives on environmental policy with a strong focus on water management and the circular economy. The plan includes a water management reform as well as a set of interrelated and reinforcing investments aimed at modernising water resource management and making it more sustainable. The plan also includes measures that aim at the enhancement of the circular economy in the sector of tourism and in the industrial sector as well as at increasing sustainable waste management practices, including recycling. The plan further addresses the challenges of climate change adaptation through a number of protective and preventive measures in the areas of forest fire protection and anti-flood management. Biodiversity preservation is addressed with one measure focusing on the protection of the marine ecosystem from hazards.

(29)In terms of contribution to the achievement of the Union 2030 climate and energy-related targets, the implementation of the plan is expected to contribute to addressing some of the key policy challenges identified in the Commission’s recommendations to the Cypriot National Energy and Climate Plan. The plan includes reforms relating to the introduction of green taxation, the liberalisation of the electricity market, facilitating energy renovations in buildings and accelerating electric mobility. The plan further includes a broad range of energy efficiency and renewable energy investments targeting households, enterprises, municipalities and the wider public sector and non-governmental organisations. The plan includes investments relating to the mass roll-out of smart meters as well as the EuroAsia Interconnector project, which should aid electricity generation from cleaner sources, in particular renewables. The plan also promotes the replacement of conventional vehicles with zero- and low-emission vehicles, the use of alternative, cleaner fuels and means of transport as well as the use of public transport.

(28)In accordance with Article 19(3), point (e) and section 2.5 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 41% of the plan’s total allocation calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(27)For some measures where calls for proposals or calls for expressions of interest should be necessary to select specific projects in the future, the principle of ‘do no significant harm’ should be complied with by ensuring, through appropriate milestones associated with those measures, that the terms of reference of the calls for proposals or calls for expressions of interest contain exclusion criteria to prevent activities that may do significant harm to environmental objectives from being selected.

(26)For each of the measures, Cyprus’ recovery and resilience plan is expected to ensure that no significant harm is done to any of the six environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, namely climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Cyprus provided justifications in accordance with the ‘do no significant harm’ technical guidance of the European Commission (2021/C 58/01).

(25)In accordance with Article 19(3), point (d) and section 2.4 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the recovery and resilience plan does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (the principle of ‘do no significant harm’).

(24)The plan contains reforms of the public administration aiming to advance the digitalisation of government, to reduce the administrative burden on citizens and firms and to further speed up the planning and approval of public investment projects. Those measures are expected to make the business climate more investment-friendly in the long run and the economy more competitive, by ensuring efficient digital government services and enabling long-lasting productivity enhancing effects.

(23)The plan presents a comprehensive set of measures to address labour market challenges and to improve social cohesion. Those measures include reforms and investments in education and skills, activation policies and social services, fighting inequalities, modernising the labour market, and increasing social inclusion. The plan provides a detailed mapping of selected interventions to address the vulnerabilities identified by the Social Scoreboard underpinning the European Pillar of Social Rights.

(22)The Cypriot plan addresses employment, education and skills and social challenges relevant for the implementation of the European Pillar of Social Rights. To foster equal opportunities and access to the labour market, the plan proposes reforms to enhance digital and green skills, modernise the evaluation system of teachers and schools and address overall skills mismatches. Investments to upgrade vocational education and training and provide activation support for young people are also envisaged, complementing actions of the European Social Fund Plus. To improve labour market dynamics and working conditions, Cyprus has proposed a number of measures, including legislative ones, to make flexible working arrangements available more widely. The plan takes an integrated approach to labour market services and policies such as public employment services and active labour market policies, in line with the Commission Recommendation on Effective Active Support to Employment. The main target group is the youth, with the plan including a targeted hiring incentive associated with training. To improve social protection and inclusion, the plan proposes measures supporting deinstitutionalisation and long-term care services.

(21)Simulations by the Commission services show that the plan has the potential to increase the GDP of Cyprus by between 1,1% and 1,8% until 2026. The plan includes a wide set of investments in physical and human capital and reforms that are expected to contribute to economic growth and increasing employment. The plan aims to accelerate the economic recovery in Cyprus and to lay the basis for a sustainable growth model in the long-term. By improving the growth potential, creating jobs and increasing economic, social and institutional resilience, the measures included in the plan are expected to reduce the country’s vulnerability to shocks. The plan is also expected to contribute to the implementation of the European Pillar of Social Rights, including through the promotion of policies creating equal opportunities for all children and increasing youth employment, and help Cyprus in being an inclusive society with good access to health care and a productive and sustainable economy.

(20)In accordance with Article 19(3), point (c) and section 2.3 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID‑19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(19)The recommendations related to the immediate fiscal policy response to the pandemic can be considered as falling outside the scope of Cyprus’ recovery and resilience plan, notwithstanding the fact that Cyprus has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the provisions of the General Escape Clause.

(18)The plan aims to reduce risks in the banking sector related to legacy non-performing loans through a dedicated action plan as well as through measures to improve the working environment for credit acquirers and credit servicers. Regarding high private debt and payment discipline, the plan puts forward improved monitoring of debts, enhancements to the functioning of the insolvency framework, and a strategy for combating financial illiteracy. Improved supervision of the insurance and pension funds sectors is expected to be achieved through an increase in available human resources and an improvement of available supervisory tools.

(17)The recovery and resilience plan contains measures that are expected to contribute to the green transition. The plan promotes clean and efficient production and use of energy through various measures, which include green taxation, opening of the electricity market, green investments support and energy renovation projects of the building stock and other infrastructure. The plan also includes measures aiming at strengthening forest fire protection and the protection of the marine ecosystem. Waste and water management related measures aim at reducing water losses, upgrading existing infrastructure and water management. Moreover, investments in zero- or low-emission vehicles as well as in the digitalisation of the transport sector are foreseen to promote sustainable transport.

(16)The establishment of a National Promotional Agency and the introduction of funding programmes and schemes are expected to improve access to finance and liquidity, especially for small and medium-sized enterprises. Grant schemes for research and innovation as well as the establishment of a central knowledge transfer office are expected to increase investments in research and innovation.

(15)The establishment of a national graduate tracking system and the update of secondary schools’ educational curricula to improve digital literacy, soft skills and entrepreneurship skills, along with several training schemes to enhance digital, green, blue and entrepreneurship skills across different population groups, are expected to improve the quality and labour market relevance of education and training. Furthermore, the digitalisation of the hiring incentive schemes system and the development of a performance management system for the public employment services are expected to improve the efficiency of operations and the quality of the services. Provision of counselling and guidance as well as a hiring incentives scheme for young people not in employment, education or training are expected to reinforce outreach and activation support for young people. The education and training system is expected to be improved by a new teacher and school evaluation system, by the implementation of a national action plan addressing skills mismatches, by the extension of free compulsory pre-primary education from the age of four and by the construction of two model technical schools further strengthening vocational education and training. Furthermore, investments in early childhood education and care and the adoption of a national strategy and action plan are expected to improve quality and affordability of early childhood education and care. The plan also provides for a law to regulate flexible working arrangements in the form of telework and extension of social protection to self-employed and workers in new forms of employment in line with the relevant country specific recommendations. The implementation of the plan is expected to strengthen the capacity, quality and resilience of the health and civil protection systems through measures aiming at upgrading equipment and setting up dedicated information systems, next to promoting investments in communication systems and e-Health. Extension and construction of additional specialised care units are also envisaged.

(14)The expansion of very high capacity networks in underserved areas and building cabling to be “Gigabit-ready” is expected to improve internet connectivity in Cyprus and promote its take-up. Digitalising government services and introducing e-justice, e-health and smart cities are expected to help the digital transition. Furthermore, the plan is expected to improve the efficiency of public administration by strengthening the strategic role of the personnel department and the capacity of the line ministries’ administrations to better implement public administration policies and human resource functions, introducing a new framework for filling public service vacancies and for the evaluation of employee performance. The introduction of a new legal framework for local governments is expected to improve their functioning. Moreover, the establishment of an anti-corruption authority is expected to help fight corruption more effectively, which should also contribute to preventing, detecting and correcting irregularities in the use of public funds. The plan includes measures which are expected to address features of Cyprus’ tax system that facilitate aggressive tax planning, in particular by multinationals, including the introduction of withholding taxes to outbound payments of dividends, royalty payments and interest.

(13)The plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Cyprus by the Council in the European Semester in 2019 and in 2020. By addressing the aforementioned challenges, the recovery and resilience plan is expected to also contribute to correcting the excessive macroeconomic imbalances that Cyprus is experiencing, notably with respect to high stocks of external, government and private debt, and still high non-performing loans, alongside a substantial current account deficit.

(12)In accordance with Article 19(3), point (b) and section 2.2 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, addressed to Cyprus or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

Addressing all or a significant subset of challenges identified in Country Specific Recommendations

(11)The plan contributes to enhancing the economic, social and territorial cohesion and convergence of Cyprus with the Union through measures improving the accessibility, resilience and quality of the health and long-term care systems, renovating social infrastructure, combatting energy poverty, making access to digital infrastructures more equal, and strengthening employment and social support to more vulnerable groups. Some of those measures should also benefit health and economic, social and institutional resilience and should act in synergy with other targeted reforms and investments, such as closing gaps in the social protection system, reducing skills mismatches on the labour market through upskilling and reskilling initiatives as well as guidance, and modernising and digitalising public administration and services, including schools and health institutions. Policies for the next generation, children and the youth are also prominent in the plan, covering the modernisation and enhancement of the education and training system at all levels, more accessible early childhood education and care, better outreach to young people not in employment, education or training, and support at all levels for the development of skills relevant for the digital and green transitions.

(10)The plan aims to contribute to addressing key challenges related to the green transition, including high greenhouse gas emissions, gaps in water and waste management, the need to safeguard biodiversity and wildlife. Measures in this context include the introduction of green taxation, a reform of the electricity market accompanied by facilitation of deployment of renewable energy, renovations of the building stock with a view to improving energy efficiency, greening of the vehicles stock, forest fire protection, protection of the marine ecosystem and smart water management. The plan also includes measures with the aim to contribute to the digital transformation, with emphasis on connectivity and e-government solutions, and integrating digitalisation concerns into measures in other areas, such as in the reform of the justice, health and education and training systems. Digitalisation of companies, in particular small and medium-sized enterprises, is supported through direct measures aimed at increasing their productivity and competitiveness. Smart, sustainable and inclusive growth is expected to be fostered by measures improving access to finance of companies, targeted research and innovation reforms and investments, an education reform contributing to addressing both the quality of educational outcomes and the need to reduce socio-economic divides, and support to a cleaner energy mix and lower carbon footprint of the economy in a fair and inclusive manner. In parallel, a component dedicated to financial and fiscal stability aims to strengthen the soundness of the banking sector, improve the functioning of the insolvency framework and prevent high private debt, along with a more effective and fair tax system, thus improving the resilience of the economy. The plan also contributes to addressing challenges of the Cypriot economy with regards to competiveness, productivity and the need to diversify the growth model, through reforms and investments in the agro-food sector, light manufacturing, sustainable tourism and circular economy.

(9)The recovery and resilience plan consists of a wide and balanced set of reforms and investments that supports addressing the main policy challenges of the Cypriot society and economy, while at the same time responding adequately to the impacts of the COVID-19 pandemic. The plan is designed around the overarching objective of strengthening the economy’s resilience and the country’s potential for economically, socially and environmentally sustainable long-term growth and welfare. The plan focuses on five priority policy axes: health and civil protection; transition to a green economy; resilience and competitiveness of the economy; digital transformation; and labour market, social protection, education and human capital. The plan clearly explains how each policy axis contributes to the six pillars referred to in Article 3 of Regulation (EU) 2021/241. This contributes to ensuring that each pillar is comprehensively addressed in a coherent manner.

(8)In accordance with Article 19(3), point (a) and section 2.1 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of the Member State concerned into account.

(7)The implementation of the Member States’ recovery and resilience plans will constitute a coordinated effort of investment and reforms across the Union. Through the coordinated and simultaneous implementation of these reforms and investments and the implementation of cross-border projects, these reforms and investments will mutually reinforce each other and generate positive spillovers across the whole Union. Therefore, about one third of the impact of the Facility on Member States’ growth and job creation should come from spillovers from other Member States.

(6)The recovery and resilience plans should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 and of the EU Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union’s economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(5)On 17 May 2021, Cyprus submitted its national recovery and resilience plan to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework, of local authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The national ownership of the recovery and resilience plans is underpinning their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of that Regulation, the Commission has assessed the relevance, effectiveness, efficiency and coherence of the recovery and resilience plan, in accordance with the assessment guidelines of Annex V to that Regulation.

(4)[The Council recommendation on the economic policy of the euro area recommended to euro area Member States to take action, including through their recovery and resilience plans, to, inter alia, ensure a policy stance which supports the recovery and to further improve convergence, resilience and sustainable and inclusive growth. The Council recommendation also recommended to strengthen national institutional frameworks, to ensure macro-financial stability, to complete the Economic and Monetary Union and to strengthen the international role of the euro.] [If the Council recommendation is not adopted by the time of the CID adoption, please remove the recital.]

(3)On 2 June 2021, the Commission published an in-depth review under Article 5 of Regulation (EU) No 1176/2011 of the European Parliament and of the Council for Cyprus. The Commission’s analysis concluded that Cyprus is experiencing excessive macroeconomic imbalances, in particular related to high stocks of external, government and private debt, and still high non-performing loans, alongside a substantial current account deficit.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Cyprus in the context of the European Semester. In particular, the Council recommended to effectively address the pandemic, sustain the economy and support the ensuing recovery. When economic conditions allow, the Council recommended to Cyprus to pursue fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment. In addition, the Council recommended to strengthen the resilience and capacity of the health system to ensure quality and affordable services, including by improving health workers’ working conditions, and to ensure that the National Health System becomes operational in 2020, as planned, while preserving its long-term sustainability. The Council also recommended Cyprus to provide adequate income replacement and access to social protection for all, to strengthen public employment services, reinforce outreach and activation support for young people, promote flexible working arrangements, improve labour market relevance of education and training, deliver on the reform of the education and training system, including teacher evaluation, and increase employers’ engagement and learners’ participation in vocational education and training, and access to affordable early childhood education and care. The Council also recommended Cyprus to secure adequate access to finance and liquidity, especially for small and medium-sized enterprises, adopt legislation to simplify the procedures for strategic investors to obtain necessary permits and licences, resume the implementation of privatisation projects and to front-load mature public investment projects and promote private investment to foster the economic recovery and focus investment on the green and digital transition, in particular on clean and efficient production and use of energy, waste and water management, sustainable transport, digitalisation and research and innovation. Moreover, Cyprus was invited to step up action to address features of the tax system that facilitate aggressive tax planning by individuals and multinationals, in particular by means of outbound payments. Cyprus was also advised to improve the efficiency and quality, including digitalisation, of (i) the judicial system, including the functioning of administrative justice and revising civil procedures and increasing the specialisation of courts, and (ii) the public sector, including the functioning of the public administration and local governments and the governance of state-owned entities and take measures to strengthen the legal enforcement of claims and ensure reliable, secure and swift systems for the issuance and transfer of title deeds and immovable property rights. Cyprus was also invited to facilitate the reduction of non-performing loans including by setting up an effective governance structure of the State-owned asset management company, taking steps to improve payment discipline and strengthening the supervision of the credit acquiring companies and in the non-bank financial sector, including by fully integrating the insurance and pension funds supervisors. Moreover, Cyprus was invited to accelerate anti-corruption reforms, safeguard the independence of the prosecution and strengthen the capacity of the law enforcement. Having assessed progress in the implementation of those country-specific recommendations at the time of submission of the recovery and resilience plan, the Commission finds that the recommendation on taking all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery has been fully implemented.

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Cyprus, exacerbating the challenges that existed before the pandemic. In 2019, the gross domestic product per capita (GDP per capita) of Cyprus was 81% of the Union average. According to the Commission’s Spring 2021 forecast, the real GDP of Cyprus declined by 5,1% in 2020 and is expected to decline by 2,1% cumulatively in 2020 and 2021. Longer-standing aspects with an impact on medium-term economic performance include a growth model relying on relatively few sources of growth and a high level of stocks of private, public and external debt with vulnerabilities in the financial sector.

Having regard to the proposal from the European Commission,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility and in particular Article 20 thereof,

Having regard to the Treaty on the Functioning of the European Union,

on the approval of the assessment of the recovery and resilience plan for Cyprus

on the approval of the assessment of the recovery and resilience plan for Cyprus

EUROPEAN COMMISSION Brussels, 8.7.2021 COM(2021) 398 final ANNEX

to the Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Cyprus {SWD(2021) 196 final}



ANNEX SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN 1.Description of Reforms and Investments A. COMPONENT 1.1: Resilient and effective health system, enhanced civil protection This component of the Cypriot Recovery and Resilience plan addresses the challenge of universal access to high-quality healthcare in Cyprus as well as civil protection’s overall emergency preparedness and response. The objective of this component is to strengthen the effectiveness, accessibility and overall resilience of the healthcare sector supporting the recently introduced National Health System through various interventions. These include the (i) modernisation and digitalisation of health care infrastructure and equipment, (ii) stepping-up of e-health services, (iii) accreditation of provided health care services and introduction of evidence-based clinical protocols and quality monitoring systems, as well as (iv) upskilling opportunities for health workers. It further aims at enhancing Cyprus’ civil protection system by establishing a modern Public Warning System. The component addresses the country-specific recommendations on health (country-specific recommendation 1 of 2020 and country-specific recommendation 3 of 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). A.1. Description of the reforms and investments for non-repayable financial support Reform 1 (C1.1R1): National Centre for Clinical Evidence and Quality Improvement The objective of the reform is to enhance the quality and sustainability of the healthcare system. For this purpose, a National Centre for Clinical Evidence and Quality Improvement shall be established developing evidence-based medicine (EBM) clinical guidelines, protocols and pathways for all levels of care (primary, secondary and tertiary healthcare) in close cooperation with healthcare professionals and patients as well as monitoring and evaluation processes such as clinical audits, peer reviews and inspections. Furthermore, an IT system enabling implementation and monitoring of the clinical standards and protocols and including an e-learning platform shall be developed. The reform shall include the training of healthcare professionals in the respective newly established protocols and processes. The implementation of the reform shall be completed by 31 December 2025. Reform 2 (C1.1R2): Design of an Electronic platform for the surveillance of Nosocomial Antibiotic Consumption and Healthcare – Associated Infections The aim of the reform is to support the digital transition of the healthcare sector and strengthen the health system’s effectiveness and resilience. It shall consist of the development of an electronic platform to process data from hospital pharmacies (nosocomial antibiotic consumption), microbiology laboratories (antimicrobial resistance), and hospitals (healthcare-associated infections (HAIs)).

The implementation of the reform shall be completed by 31 December 2025. Investment 1 (C1.1I1): New facilities for the Cyprus Blood Establishment and procurement of the latest technology attendant equipment The objective of the investment is to enhance central Blood Establishment operations in Cyprus. This measure shall entail the construction of new facilities for the Cyprus Blood Establishment and the procurement of the latest technology attendant equipment. About 80 000 blood products (such as red blood cells, platelets and fresh frozen plasma) shall be able to be distributed for clinical use across the whole country.The new facilities shall have a primary energy demand that is at least 20% lower than defined in the nearly zero-energy building (NZEB) requirement. The implementation of the investment shall be completed by 30 June 2025. Investment 2 (C1.1I2): Cyprus Innovative Public Health information and communications technology (ICT) System The aim of the measure is to establish the Influenza Sentinel Surveillance module of the Cyprus Innovative Public Health information and communications technology (ICT) System to support public health sector bodies in making evidence-based decisions. It shall include both the development of the necessary digital tools (such as software and ICT infrastructure) as well as the upskilling of health workers and Ministry of Health personnel to use the system for data collection and information extraction. Following the European Centre for Disease Prevention and Control (ECDC) and World Health Organisation (WHO) guidelines, the Influenza Sentinel Surveillance (ISS) module of the Cyprus Innovative Public Health ICT System shall record epidemiological data informing the Ministry of Health of potential epidemiological outbursts. The Ministry of Health shall assign 150 doctors as sentinels who shall enter data in the Influenza Sentinel Surveillance (ISS) module of the Cyprus Innovative Public Health ICT System. The implementation of the investment shall be completed by 31 December 2025. Investment 3 (C1.1I3): Purchase/replacement of medical equipment in hospitals The investment aims at enabling private hospitals to invest within a short timeframe in the modernisation of their medical equipment increasing the quality of health services provided. The measure shall comprise a support scheme for private hospitals supporting the upgrade or replacement of medical equipment. Applications for funding shall be assessed based on transparent selection criteria by a special Assessment Committee, which shall be appointed by the Minister of Health. The implementation of the investment shall be completed by 31 December 2025. Investment 4 (C1.1I4): Accreditation of public and private hospitals The objective of this investment is to support the accreditation of hospitals, enabling their registration within the National Health System (NHS) and enhancing the quality assurance of health care services provided. It shall consist in a sponsorship scheme facilitating the accreditation of hospitals by covering part of (i) the costs incurred by private and public hospitals related to accreditation advisory services from external experts (on how to make the necessary preparations for the accreditation) and (ii) accreditation fees charged by internationally recognised bodies.

The implementation of the investment shall be completed by 31 December 2025. Investment 6 (C1.1I6): Deployment of generic cross border e-health services in Cyprus The measure aims at extending e-health services to allow cross-border exchange of patient health information (in particular patient summaries and e-prescriptions), to become part of a secure peer-to-peer e-health network within the EU. It shall consist in putting in operation a cross-border data exchange between Cyprus and Union Member States with operational National Contact Points for eHealth (NCPeH), such as e-prescriptions, e-dispensations, patient summaries, and additional data sets (amongst others discharge forms, laboratory results and imaging) as agreed with the eHealth Digital Service Infrastructure (eHDSI). The implementation of the investment shall be completed by 30 June 2025. Investment 7 (C1.1I7): Public warning system for supporting emergency operations through SMS The objective of the investment is to enhance Cyprus’ civil protection system by establishing a modern public warning system targeting the whole population through a mobile application to increase public safety, preparedness and resilience. The measure shall consist in putting in operation a public warning system reaching the whole population through a mobile application or SMS for alerting on imminent or developing emergencies. The implementation of the investment shall be completed by 31 December 2025. A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Sequential Number Related Measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description of each milestone and target Unit of measure Baseline Goal Quarter Year 1 C1.1R1 National Centre for Clinical Evidence and Quality Improvement Target Clinical protocols prepared, audited and peer reviewed - Number 0 50 Q4 2024 At least 50 clinical protocols prepared, audited and peer reviewed by a team of experts, with key characteristics of protocols being: • evidence-based medicine (EBM) clinical practice recommendations, • implementation guide, • audit plan. 2 C1.1R1 National Centre for Clinical Evidence and Quality Improvement Target Clinical protocols prepared, audited and peer reviewed - Number 50 90 Q4 2025 At least 90 clinical protocols prepared, audited and peer reviewed by team of experts, with key characteristics of protocols being: • evidence-based medicine (EBM) clinical practice recommendations, • implementation guide, • audit plan. 3 C1.1R2 Design of an Electronic platform for the surveillance of Nosocomial Antibiotic Consumption and Healthcare – Associated Infections Milestone Adoption of the list of health care facilities Adoption of the list of health care facilities - - - Q1 2023 Adoption of the list of health care facilities that shall be providing information to the Health Insurance Organisation on antibiotic consumption and shall be monitored by the Health Insurance Organisation. 4 C1.1R2 Design of an Electronic platform for the surveillance of Nosocomial Antibiotic Consumption and Healthcare – Associated Infections Milestone Electronic platform including monitoring system is fully operational Electronic platform up and running - - - Q4 2025 Electronic platform to process data from hospital pharmacies (nosocomial antibiotic consumption), microbiology laboratories (antimicrobial resistance), and hospitals (healthcare-associated infections (HAIs)) shall be fully operational (Installed at all points of use and real data are being entered) and a system monitoring its effectiveness shall be in place. 5 C1.1I1 New facilities for the Cyprus Blood Establishment and procurement of the latest technology attendant equipment Milestone Contract signature for the construction of the Cyprus Blood Establishment Signature of the contract - - - Q3 2022 Signature of the contract with the selected tenderer(s) (contractor(s)) selected under a competitive call for tenders for the construction of the Cyprus Blood Establishment. 6 C1.1I1 New facilities for the Cyprus Blood Establishment and procurement of the latest technology attendant equipment Milestone New blood establishment facilities including all equipment are fully operational Completion of the construction and start of operations - - - Q2 2025 The new blood establishment facilities shall be constructed and fully operational housing the Cyprus Blood Establishment. The new facilities shall have a primary energy demand that is at least 20% lower than defined in the nearly zero-energy building (NZEB) requirement. New relevant equipment shall be operational and the transfer of the existing equipment from the present Blood Establishment premises to the new facilities shall be complete. 7 C1.1I2 Cyprus Innovative Public Health information and communications technology (ICT) System Milestone Influenza Sentinel Surveillance (ISS)System Fully operational system - - Q2 2022 The Influenza Sentinel Surveillance System module of the Cyprus Innovative Public Health information and communications technology (ICT) System shall be operational and a system monitoring its effectiveness shall be in place. 8 C1.1I2 Cyprus Innovative Public Health information and communications technology (ICT) System Target Sentinels entering data in the Influenza Sentinel Surveillance System module - Number 0 150 Q4 2025 Following the European Centre for Disease Prevention and Control (ECDC) and World Health Organisation (WHO) guidelines, the Influenza Sentinel Surveillance System (ISS) module of the Cyprus Innovative Public Health ICT System shall record epidemiological data entered in the online digital platform by general practitioners (GPs) to inform the Ministry of Health of potential outbursts. The Ministry of Health shall assign at least 150 doctors as sentinels that shall enter data in the ISS module of the Cyprus Innovative Public Health ICT System. 9 C1.1I3 Purchase/replacement of medical equipment in hospitals Target Health institutions having benefitted from the financial support scheme - Number 0 10 Q4 2023 At least ten of the applicant health institutions of various categories have received financial support from the scheme for medical equipment acquisition. 10 C1.1I3 Purchase/replacement of medical equipment in hospitals Target Health institutions having benefitted from the financial support scheme - Number 10 23 Q4 2025 At least 23 of the applicant health institutions of various categories have received financial support from the scheme for medical equipment acquisition. 11 C1.1I4 Accreditation of public and private hospitals Target Health institutions having benefitted from the scheme covering accreditation related costs - Number 0 20 Q2 2024 At least 20 of the applicant health institutions of various categories have been supported from the scheme for gaining accreditation. 12 C1.1I4 Accreditation of public and private hospitals Target Health institutions having benefitted from the scheme covering accreditation related costs - Number 20 45 Q4 2025 At least 45 of the applicant health institutions of various categories have been supported from the scheme for gaining accreditation. 13 C1.1I6 Deployment of generic cross border e-health services in Cyprus Milestone Completion of the analysis, design and development phase of the IT System for cross-border e-health services Completion of the analysis, design and development phase of the IT System, as provided in a dedicated report by the deliverables acceptance team in the contracting authority - - - Q4 2023 The analysis, design and development of the IT System phase shall be completed. Specifications shall include: a) mobile video communication, b) geolocation, c) capability lookup, d) the Cross-Community Patient Discovery Profile (to locate communities that hold patient relevant health data and the translation of patient identifiers across communities holding the same patient’s data), e) for cybersecurity Cross-Layered Detection and Response (XDR) and e-ID, f) automatic data collection and evaluation, g) for both Cypriot and foreign residents: (i) an open source National Contact Point update for e-health, (ii) updated patient summary, and (iii) e-Prescription, h) sharing of unstructured clinical documents, and i) patient access to cross border data services, based on wave 6 Clinical Document Architecture Implementation Guidelines by the e-Health network. A new service shall also be created to enable the exchange of structured and coded clinical documents that may include images/images reports, discharge letters (encounter report), electronic health records, and laboratory results. 14 C1.1I6 Deployment of generic cross border e-health services in Cyprus Milestone Full operation of cross-border healthcare data exchange Approval of the system by the National eHealth Authority - - - Q2 2025 Full operation of cross-border data exchange between Cyprus and countries with Operational National Contact Points for eHealth (such as e-prescriptions, e-dispensations, patient summaries exchanged with Cyprus) and additional data sets (such as discharge forms, laboratory results and imaging) as agreed with eHealth Digital Service Infrastructure. 15 C1.1I7 Public warning system for supporting emergency operations through SMS Milestone Newly established public warning system and its monitoring system are fully operational The Technical Committee signs off final Systems Acceptance and go-live Report for the public warning system - - - Q4 2025 The public warning system shall be operational and a monitoring system shall be in place reaching the whole population through a mobile application and/or SMS. The terminal points machines for SMS sending shall be fully operational. A.3. Description of the reforms and investments for the loan Reform 3 (C1.1R3): Gradually shifting of the healthcare provision and reimbursement framework towards value-based models The aim of the reform is to introduce and gradually move to value-based healthcare models to complement current volume-based healthcare models, to improve health outcomes and limit costs. It shall consist in the development of appropriate value-based models and initiatives, with relevant monitoring mechanisms to measure and track the success of the reform, and the introduction of value-based models in the Reimbursement Decision for primary and in-patient care as per the General Health System Legislation. The implementation of the reform shall be completed by 31 March 2023.

Investment 5 (C1.1I5): Enhancement, modernisation and upgrade of Cyprus State Hospitals The objective of this investment is to enhance, modernise and/or upgrade the Cyprus State Hospitals to enable them to compete on an equal basis with the private sector whilst at the same time improving the quality of healthcare services as well as working conditions for health workers in public hospitals. This measure shall consist in the enhancement, modernisation and/or upgrade of the following nine State Hospitals: (1) enhancement of the Makarios Hospital for Children to offer a complete treatment of cases to children; (2) construction and/or extension of Haemodyalisis Unit at Paphos and Limassol Hospitals; (3) construction of a Mental Health Hospital; (4) enhancement of the Limassol General Hospital; (5) enhancement of the Accident and Emergency Units across all State Cyprus Hospitals; (6) enhancement of the Paphos General Hospital; (7) extension of Invasive Radiology Unit including medical equipment (such as Angiography Unit); (8) construction of a COVID-19 Unit at the Famagusta Hospital; and (9) creation of a Communicable Diseases Unit at the Limassol General Hospital. Building renovations shall aim at achieving on average at least a 30% primary energy demand reduction. The Haemodyalisis unit at Paphos Hospital shall have a primary energy demand that is at least 20% lower than defined by the nearly zero-energy building (NZEB) requirement. The implementation of the investment shall be completed by 30 June 2026. A.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan Sequential Number Related Measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description of each milestone and target Unit of measure Baseline Goal Quarter Year 16 C1.1R3 Gradually shifting the healthcare provision and reimbursement framework towards value-based models. Milestone Value-based reimbursement to be reflected for primary and in-patient care Value-based reimbursement to be reflected in the Reimbursement Decision - - - Q1 2023 Annual reimbursement decisions in the general health system shall be adjusted to include value-based reimbursement for primary and in-patient care. 17 C1.1I5 Enhancement, modernisation and upgrade of Cyprus State Hospitals Target Enhanced, constructed and/or upgraded State hospitals - Number 0 7 Q2 2024 At least seven State hospitals shall be enhanced, constructed and/or upgraded. Building renovations shall aim at achieving on average at least a 30% primary energy demand reduction. The Haemodyalisis unit at Paphos Hospital shall have a primary energy demand that is at least 20% lower than defined by the nearly zero-energy building (NZEB) requirement. The end of works shall be attested by taking over issued certificates, of the completed works. 18 C1.1I5 Enhancement, modernisation and upgrade of Cyprus State Hospitals Target Enhanced, constructed and/or upgraded State hospitals - Number 7 9 Q2 2026 Nine State hospitals shall be enhanced, constructed and/or upgraded. Building renovations shall aim at achieving on average at least a 30% primary energy demand reduction. The Haemodyalisis unit at Paphos Hospital shall have a primary energy demand that is at least 20% lower than defined by the nearly zero-energy building (NZEB) requirement. The end of works shall be attested by taking over issued certificates of the completed works. B. COMPONENT 2.1: Climate neutrality, Energy efficiency and Renewable Energy This component of the Cypriot Recovery and Resilience Plan aims to address the challenge of climate change mitigation by contributing to the country’s transition to climate neutrality. The objectives of the component are to improve the environment policy through measures relating to green taxation, the opening up of the electricity market and the facilitation of licensing of renewable energy and renovation projects. The component aims to improve the energy efficiency of the building stock and other infrastructure and to support green investments for SMEs, households, the wider public sector and NGOs. The component also targets the alleviation of energy poverty and aims to address Cyprus’ energy isolation. The component supports addressing the Country Specific Recommendations for the years 2019 and 2020 that recommend focusing investment and investment-related policies on energy efficiency and renewable energy (Country-Specific Recommendation 4 of 2019 and Country-Specific Recommendation 3 of 2020). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). B.1. Description of the reforms and investments for non-repayable financial support Reform 1 (C2.1R1): Green Taxation The objectives of the measure are to promote a shift towards a more efficient use of environmental resources, reduce greenhouse gas emissions and to increase the penetration of renewable energy. The reform shall consist in legislative changes introducing a carbon tax for fuels used in the sectors of the economy that do not fall under the EU greenhouse gas Emissions Trading System. The reform shall also entail the gradual introduction of a levy on water, as well as the introduction of a charge on household/landfill waste. The reform shall aim at making a tangible contribution to reaching the 2030 climate and energy targets to reduce greenhouse gas emissions and increase the share of renewable energy. The legislative changes shall be based on the findings of an independent study to be undertaken. The implementation of the reform shall be completed by 30 June 2026. Reform 2 (C2.1R2): Independence of Cyprus Transmission System Operator (TSOC) from the incumbent Electricity Authority of Cyprus The objective of the measure is to enhance competition in the electricity market by creating conditions for new investors to participate in the generation, storage, aggregation, demand response and supply of electricity.

The reform shall consist in ensuring the independence of the Cyprus Transmission System Operator (TSOC) from the incumbent Electricity Authority of Cyprus (EAC) in terms of governance, financial and personnel management. The measure shall also facilitate supplier switching, which is expected to reduce the cost of electricity for domestic and commercial/industrial customers. The implementation of the reform shall be completed by 31 December 2021. Reform 3 (C2.1R3): Digital One-Stop Shops to streamline RES projects permitting and to facilitate Energy Renovation in Buildings The objective of the measure is to promote the implementation of RES projects by streamlining the RES projects permitting process. The reform shall also aim at accelerating the energy renovation of buildings. The reform shall consist in digitalising the licensing permitting process for RES projects and establishing a single point of contact for technical and financial support for the purposes of energy renovation of buildings. The implementation of the reform shall be completed by 31 December 2022. Reform 4 (C2.1R4): Energy Storage Regulatory Framework The objective of the measure is to establish a regulatory framework for promoting the participation of storage facilities in the electricity market. The reform shall consist in amending the Transmission and Distribution Rules (TDRs) and the Trading and Settlement Rules (TSRs) to allow storage facilities to participate in the wholesale electricity market. This is expected to promote the generation of electricity from renewable energy systems and to contribute to the efficiency and economic viability of the electricity market as a whole. The implementation of the reform shall be completed by 31 December 2021. Investment 1 (C2.1I1): Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector The objective of the measure is to reduce the primary and final energy consumption and the CO2 emissions in buildings and/or facilities owned or operated by SMEs, local authorities (Municipalities and Communities) and organisations of the wider public sector. The investment shall consist in providing support to at least 275 entities for building renovation and for making production processes more efficient. The grant scheme shall also promote the execution of energy audits, as well as the adoption of digital technologies and the integration of renewables. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the call for proposals for this measure shall reflect that the purchasing of biomass boilers shall comply with the provisions of the Directive 2008/50/EC on ambient air quality and cleaner air for Europe, the Renewable Energy Directive 2018/2001/EU and relevant national legislation on air pollutant emissions. The implementation of the investment shall be completed by 31 December 2025.



Investment 2 (C2.1I2): Promoting renewables and individual energy efficiency measures in dwellings and tackling energy poverty in households with people with disabilities The objective of the measure is to encourage the use of renewable energy sources and energy savings by the large stock of old dwellings, as well as to subsidise the implementation of small-scale energy renovations in energy poor households as well as in households with people with disabilities.

The investment is composed of two sub-measures: (i) a support scheme for promoting renewables and individual energy efficiency measures in dwellings and (ii) a support scheme for addressing energy poverty in households with people with disabilities. Sub-measure 1: promoting renewables and energy efficiency measures in dwellings The investment shall consist in providing grants to at least 16 200 dwellings (including households of vulnerable electricity consumers) for thermal insulation of roofs and/or for the installation of a photovoltaic system and/or for the installation or replacement of Solar Water Heating (SWH) Systems of an existing dwelling. Sub-measure 2: addressing energy poverty in households with people with disabilities The investment shall consist in providing support for the implementation of small-scale energy renovations, such as thermal insulation and energy efficient equipment, in at least 270 energy poor households as well as households with people with disabilities. The implementation of the investment shall be completed by 30 June 2026. Investment 3 (C2.1I3): Encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs and facilitating the transition of local communities towards climate mitigation & adaptation The objective of the measure is to promote the use of RES and energy savings by the large stock of old infrastructure used by local authorities, as well as to build a pipeline of sustainable energy and climate adaptation investment projects across rural communities in Cyprus. The investment is composed of two sub-measures: (i) encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs; and (ii) facilitating the transition of local communities towards climate mitigation and adaptation. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. Sub-measure 1: Encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs The sub-measure shall consist in setting up a grant scheme for providing support for large-scale energy efficiency and RES measures in buildings, infrastructure, and social housing targeting local public authorities and NGOs.



Sub-measure 2: Facilitating the transition of local communities towards climate mitigation and adaptation The sub-measure shall consist in providing technical support to rural Community Councils in developing Sustainable Energy and Climate Plans and implementing energy and climate investments, as well as in setting up a grant scheme to support sustainable energy and climate adaptation investments. The two sub-measures together shall lead to at least 580 investments for improving energy performance and resilience to climate change to be undertaken by local authorities or NGOs. The implementation of the investment shall be completed by 30 June 2026.

Investment 4 (C2.1I4): Reduction of CO2 emissions in industries, businesses and organisations The objective of the measure is to encourage industries, businesses and organisations to engage in transformations targeting decarbonisation and to implement action plans to reduce greenhouse gas emissions in their operations and/ or supply chains. The investment consists in setting up a support scheme providing financing, equivalent to the cost for the purchase of greenhouse gas emission allowances to be avoided due to the reduction in emissions resulting from the beneficiaries’ actions. At least 354 566 tons of CO2eq shall be reduced as a result of the support provided. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation may be selected. The implementation of the investment shall be completed by 30 June 2026. Investment 5 (C2.1I5): Energy Efficiency Upgrading of public buildings The objective of the measure is to facilitate the energy upgrading and increased energy efficiency of selected public buildings, i.e. fire service properties, schools, the Nicosia General Hospital, water treatment plants and water pumping stations. The investment is composed of three sub-measures: (i) Fire Service Properties and Schools; (ii) Nicosia General Hospital; and (iii) Installation of Grid connected Photovoltaic Energy Systems in Water Treatment Plants and water pumping stations. Sub-measure 1: Fire Service Properties and Schools The sub-measure consists in the implementation of energy upgrades in the 16 Urban Fire Stations in Cyprus, the Fire Brigade Headquarters, and two rural Fire Stations. The sub-measure shall also cover the installation of thermal insulation and photovoltaic systems in at least 405 schools. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. Sub-measure 2: Nicosia General Hospital The sub-measure shall consist in the setting up and installation of photovoltaics system at the Nicosia General Hospital of a total capacity of 943 KW. Sub-measure 3: Water Treatment Plants and water pumping stations The sub-measure shall consist in the installation of grid connected photovoltaic energy systems of total power of 2 MWp in water treatment plants and water pumping stations. The implementation of the investment shall be completed by 31 December 2025.

Investment 6 (C2.1I6): Upgrading renewable energy and smart grids testing infrastructure at the University of Cyprus The objective of the measure is to upgrade the renewable energy and smart grids testing infrastructure at the University of Cyprus and to integrate this infrastructure in the future smart grid. The investment shall consist in delivery, installation, testing, calibration, commissioning and acceptance of smart grids equipment, followed by final infrastructure integration. The measure shall also include personnel orientation and training. The implementation of the investment shall be completed by 30 June 2024. Investment 7 (C2.1I7): Mass installation and operation by the Distribution System Operator (DSO) of Smart Metering Infrastructure (Advanced Metering Infrastructure) The objective of the measure is to facilitate the mass roll-out of smart meters in Cyprus. The investment shall consist in the delivery and installation of 400 000 smart meters to final electricity customers, including natural and legal persons. The implementation of the investment shall be completed by 30 June 2026. Investment 8 (C2.1I8): Monitoring and reduction of GHG emissions in agriculture The objective of the measure is to enhance the monitoring for greenhouse gas emissions from agriculture in Cyprus and contribute to their reduction. The investment shall consist in the establishment of a GHG monitoring system for agriculture, which shall provide data for the implementation of more efficient mitigation practices and contribute to achieving a 10% reduction of GHG emissions from agriculture by end 2025. The implementation of the investment shall be completed by 31 December 2025. Investment 9 (C2.1I9): Forests fire protection The objective of the measure is to upgrade the capabilities of relevant authorities in Cyprus to cope with fire hazards and to strengthen the protection against the risks faced by citizens, infrastructure and forests. The investment shall consist in the purchasing of firefighting aircraft, vehicles, equipment and related training and servicing for the period of implementation of the measure. This shall include the supply of the following vehicles, machinery and equipment: 75 transport vehicles for patrol purposes for forest protection and transfer of staff in fire incidents; 12 large fire trucks; 25 emergency firefighting vehicles; four bulldozers for the construction of fire protection works with the possibility of transport by truck for rapid transport to fires; four ground bulldozers for the construction of fire protection works; six agricultural tractors equipped with the necessary tools for the implementation of fire prevention measures; four-wheel excavators / loaders; six branch shredders; four loaders (trucks) and six 20-tonne tankers for fire protection purposes; one firefighting aircraft. The implementation of the investment shall be completed by 31 December 2025.

Investment 10 (C2.1I10): Market Management System to facilitate the opening of the electricity market to competition The objective of the measure is to introduce a Market Management System by the Cyprus Transmission System Operator as a tool for facilitating the opening of the electricity market to competition. The investment shall consist in the installation and roll-out of the Market Management System for the Cyprus Electricity Market and related training of 100% of the personnel of the Transmission System Operator. The implementation of the investment shall be completed by 31 March 2023. B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Sequential Number Related Measure (Reform or Investment) Milestone / Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description of each milestone and target Unit of measure Baseline Goal Quarter Year 19 C2.1R1 Green Taxation Milestone Entry into force of a law introducing a carbon tax for fuels, a levy on water and a charge on household/ landfill waste Provision in the law indicating the entry into force of a law introducing a carbon tax for fuels, a levy on water and a charge on household/ landfill waste - - - Q2 2023 Entry into force of legislative changes that shall aim at making a tangible contribution to reaching the 2030 target for reducing greenhouse gas emissions. The amendments shall be based on the findings of an independent study to be undertaken. The law shall in particular (a) introduce a carbon tax for fuels used in the sectors of the economy that do not fall under the EU greenhouse gas Emissions Trading System, (b) introduce gradually a levy on water that shall reflect the scarcity of this natural resource and the cost to the environment of its use and (c) introduce of a country wide charge on household/ landfill waste. 20 C2.1R1 Green Taxation Milestone Impact assessment report measuring the reform’s effect on the environment and the economy Publication of the impact assessment report measuring the reform’s effect on the environment and the economy - - - Q2 2026 Impact assessment report measuring the reform’s effect on the environment and the economic effect on households and businesses, as well as recommending further tax amendments, as necessary. 21 C2.1R2 Independence of Cyprus Transmission System Operator (TSOC) from the incumbent Electricity Authority of Cyprus Milestone Law for the Regulation of the Electricity Market of 2021 Provision in the law indicating the entry into force of the 2021 "Law for the Regulation of the Electricity Market" - - - Q4 2021 Entry into force of the Law for the Regulation of the Electricity Market of 2021, which shall facilitate the opening of the electricity market to competition and boost the uptake of RES by: (a) achieving the independence of the Cyprus Transmission System Operator (TSOC) from the incumbent Electricity Authority of Cyprus (EAC) (autonomy in governance, financial autonomy and independence of TSOC personnel), (b) introducing the necessary steps for reducing the cost of electricity for domestic and commercial/industrial customers and (c) creating conditions of transparency and trust to motivate new investors in generation and supply of electricity. 22 C2.1R3 Digital One-Stop Shops to streamline RES projects permitting and to facilitate Energy Renovation in Buildings Milestone Fully operational IT platform Fully operational IT platform accepted by the Ministry of Energy, Commerce and Industry - - - Q4 2022 Fully operational IT platform for (1) guiding the applicant through the administrative permit application process in a transparent manner up to the delivery of one or several decisions by the responsible authorities, (2) providing the applicant with all necessary information and involve, where appropriate, other administrative authorities. 23 C2.1R4 Energy Storage Regulatory Framework Milestone Amendment of the Transmission and Distribution Rules (TDRs) and Trading and Settlement Rules (TSRs) Publication on the website of the Cyprus Energy Regulatory Authority of Amendment of the Transmission and Distribution Rules (TDRs) and the Trading and Settlement Rules (TSRs) - - - Q4 2021 Entry into force of an amendment to the Transmission and Distribution Rules (TDRs) and Trading and Settlement Rules (TSRs) which shall provide the necessary regulatory framework (market rules) and technical modalities that shall allow storage facilities to: - participate in the wholesale electricity market, - promote the development of an economically viable, efficient, safe and consumer-oriented electricity market that prioritises the generation of electricity from renewable energy systems. 24 C2.1I1 Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector Milestone Support scheme for Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector Publication of call for proposals for the support scheme for Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector - - - Q4 2021 Issue call for proposals for the support scheme for promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector, following verification of state aid regulation to be applied by Commissioner for State Aid Control and Council of Ministers decision approving the scheme objectives. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. 25 C2.1I1 Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector Target Entities (SMEs, municipalities, communities and the wider public sector) having implemented energy efficiency interventions Number 0 125 Q4 2024 At least 125 entities (SMEs, municipalities, communities and the wider public sector) have implemented (1) energy efficiency interventions (energy efficiency measures) in buildings, or (2) energy efficiency measures related to their production processes or (3) energy efficiency measures in municipal sports facilities, due to the support provided with an objective to achieve on average at least a 30% primary energy demand reduction. The projects selected shall be in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 26 C2.1I1 Promoting energy efficiency investments in SMEs, municipalities, communities and the wider public sector Target Entities (SMEs, municipalities, communities and the wider public sector) having implemented energy efficiency interventions Number 125 275 Q4 2025 At least 275 entities (SMEs, municipalities, communities and the wider public sector) have implemented (1) energy efficiency interventions (energy efficiency measures) in buildings, or (2) energy efficiency measures related to their production processes or (3) energy efficiency measures in municipal sports facilities, due to the support provided with an objective to achieve on average at least a 30% primary energy demand reduction. The projects selected shall be in compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. 27 C2.1I2 Promoting renewables and individual energy efficiency measures in dwellings and tackling energy poverty in households with people with disabilities Milestone First call for proposals for Promoting renewables and individual energy efficiency measures in dwellings First call for proposals published - - - Q2 2021 The first call for proposals for promoting renewables and individual energy efficiency measures in dwellings has been published on the RES and Energy Conservation Fund website. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. 28 C2.1I2 Promoting renewables and individual energy efficiency measures in dwellings and tackling energy poverty in households with people with disabilities Target Dwellings and households with people with disabilities having improved their energy performance - Number 0 8 600 Q4 2023 At least 8 500 dwellings and 100 households with people with disabilities have improved their energy performance due to the tailored solutions (support services and energy guidance) and the financial support provided with an objective to achieve on average at least a 30% primary energy demand reduction. 29 C2.1I2 Promoting renewables and individual energy efficiency measures in dwellings and tackling energy poverty in households with people with disabilities Target Dwellings and households with people with disabilities having improved their energy performance - Number 8600 16 470 Q2 2026 At least 16 200 dwellings and 270 households with people with disabilities have improved their energy performance due to the tailored solutions (support services and energy guidance) and the financial support provided with an objective to achieve on average at least a 30% primary energy demand reduction. 30 C2.1I3 Encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs and facilitating the transition of local communities towards climate mitigation & adaptation Milestone First call for proposals to support local authorities in energy efficiency measures Publish First call for proposals - - - Q3 2021 The first call for proposals to support local authorities in energy efficiency measures has been published on the RES and Energy Conservation Fund Website. The investment shall aim at achieving on average at least a 30% primary energy demand reduction. 31 C2.1I3 Encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs and facilitating the transition of local communities towards climate mitigation & adaptation Target Investments undertaken by local authorities or NGOs that have improved their energy performance, and resilience to climate change - Number 0 190 Q4 2023 At least 190 investments undertaken by local authorities or NGOs that have improved their energy performance, and resilience to climate change due to the technical assistance and the financial support provided with an objective to achieve on average at least a 30% primary energy demand reduction. 32 C2.1I3 Encouraging the use of renewables and energy savings by local/wider public authorities as well as NGOs and facilitating the transition of local communities towards climate mitigation & adaptation Target Investments undertaken by local authorities or NGOs that have improved their energy performance, and resilience to climate change - Number 190 580 Q2 2026 At least 580 investments undertaken