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McKinsey research: The steps Cyprus needs to take for zero emissions

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Net zero emissions can be achieved by 2050, with a >40% reduction by 2030, and the transition will have a positive impact on jobs, according to research.

Ερευνα McKinsey: Τα βorματ ποεεεομ ηειεκμπς ρyπωνIn the case of Cyprus, achieving

The energy sector is crucial

Emphasizing that for this specific goal, each country is a separate case, Mr. Tsopelas referred to the eight key messages extracted from the McKinsey research on Cyprus:

1. Cyprus emissions are ~10 MtCO2eq, driven by 3 main sectors (energy, transport, industry). The relative importance of each sector differs from the EU, reflecting the inherent elements of the Cypriot economy

2. Net zero emissions can be achieved by 2050, with >40% reduction by 2030. Each sector will follow a different path, while 5 will be the decarbonisation drivers to offset ~80% of emissions reduction.

3. The energy sector will be pivotal. Demand is expected to nearly double in size. Short- to medium-term decarbonization will come from solar power and the transition from oil to natural gas. The country has a strategic option for the last mile of decarbonisation.

4. About 40 billion euros of investments in clean technologies will be required, of which 10-15% will be gradual.

5. The transition will have a positive net effect on jobs and Gross Value Added (GVA). At the same time, the trade deficit of energy carriers will be significantly reduced.

6. The transition can also create growth for Cyprus in areas that combine economic attractiveness with the country's ability to win

7. Net zero emissions will bring reduced volatility and cost to society,if performed in a regular manner.

8. Enabling a smooth transition requires consideration of the energy trilemma and coordinated action between private and public stakeholders

Ερευνα McKinsey: Τα βorματ ποεεεομ ηειεκμπς ρyπων

=”bd_Title”>The 5 Carbonization Levers

For his part, Mr Charalambous noted that for the period 2021-2030, the majority of decarbonisation will be due to the electricity sector, followed by industry and transport. For the period 2031-2050 the majority of the decarbonisation will be due to transport and industry.

Five levers will lead to 80% of the effort to decarbonize Cyprus by 2050 and especially the energy from RES and electrification, Mr. Charalambous also emphasized, explaining that from today until 2050 the contribution of RES will be 36%, electric cars 24%, CO2 capture – storage 8%, solutions based on nature (natural sinks coal) 8% and the electrification of buildings 4%
Energy

At the same time from 2021 to 2030 energy demand is predicted to increase, he said. Cyprus' electricity system currently relies heavily on oil (diesel and HFO), leading to high emissions. This picture should change with short- to medium-term decarbonisation, i.e. by 2030, where most of the decarbonisation (~75% by 2030) will take place by integrating natural gas into the energy mix and significantly increasing of solar capacity. Regarding long-term decarbonization (100% and by 2050), Mr. Charalambous said that the last share of decarbonization in the early to mid-2040s can be based on three strategic options:

  • Natural gas with CCUS
  • Hydrogen (H2) combustion – (imported or self-produced)
  • “Clean play” of RES, (with or without FOSW)

Source: www.kathimerini.com.cy

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