The European Union has called on Cyprus to implement targeted measures to improve its performance in water management, waste management and climate adaptation, warning that persistent shortcomings are threatening the country's economic resilience.
As part of the annual assessment of economic policies and reforms that leads to country-specific recommendations by the Council of the European Union, tackling water scarcity, promoting the circular use of materials and strengthening protection against climate risks and extreme weather events have been identified among Cyprus' most pressing challenges.
The inclusion of these three pillars in the final package of recommendations reflects the European Commission's concern over Cyprus' handling of water scarcity and broader climate-related risks, which are increasingly threatening key economic activities such as tourism and agriculture.
At the same time, the Commission sees progress towards a circular economy as being excessively slow.
It believes Cyprus is at risk of missing EU targets for municipal waste and packaging waste, requiring additional investment.
These findings are closely linked to the slow progress of preparations for the Pay As You Throw scheme, which remains stalled amid studies on upgrading integrated waste management facilities and creating infrastructure for waste treatment, so that rubbish is no longer overwhelmingly disposed of in landfill in breach of EU legislation.
The Council is calling on Cyprus to:
"Improve water, wastewater and waste management by strengthening infrastructure investments, increasing the administrative capacity of local authorities, promoting sustainable water-use practices and expanding the separate collection of municipal and packaging waste. Improve the institutional framework governing climate change adaptation."
The recommendation document states that:
"Cyprus faces significant and persistent environmental challenges. Water scarcity has reached a critical level, as indicators of freshwater exploitation and water productivity place Cyprus among the worst-performing countries in the EU. Despite efforts under the Recovery and Resilience Facility and cohesion policy, investments in water infrastructure remain insufficient to address systemic vulnerabilities related to drinking water and wastewater treatment."
The document adds that waste-management performance continues to lag behind EU targets.
Per-capita municipal waste generation in Cyprus remains among the highest in the Union.
Although various measures adopted under the 2021 Circular Economy Action Plan and cohesion policy aim to reduce waste, improve waste sorting and increase recycling, their full potential has yet to be realised.
The Commission also stresses that improving the administrative capacity of local and regional authorities is essential to support the planning and coordination of water and waste-management investments across Cyprus.
Desalination programme
The state of Cyprus' efforts to address water shortages was outlined by former Agriculture, Rural Development and Environment Minister Maria Panayiotou before leaving office.
In a written response dated 11 August 2026 to AKEL MP Irene Charalambidou, who submitted a parliamentary question on the issue, Panayiotou said four mobile desalination units are already in operation.
These are located at:
- Limassol Port
- Kissonerga
- Moni
- The Garillis riverbed
Installation of another mobile desalination unit at Episkopi is under way and is expected to be completed during the second half of 2026.
In addition, the Cabinet approved in January 2026:
- Increased capacity for mobile desalination units in Episkopi and Ayia Napa
- Increased capacity for the mobile unit at Vasiliko
- Installation of a mobile desalination unit in Mazotos
- Installation of a floating desalination unit in Germasogeia
The Vasiliko and Mazotos projects are currently at the tender stage and are expected to become operational during 2027.
Plans are also advancing for a permanent desalination plant in Ayia Napa (Ayia Thekla area), replacing the previously proposed mobile unit.
Once all these mobile units are completed, seven mobile desalination plants with a combined capacity of 122,000 cubic metres per day will have been added.
Combined with the current production of permanent desalination plants, which stands at 235,000 cubic metres per day, total desalination capacity is expected to increase by roughly 52%.
Furthermore, the completion of at least three new permanent desalination plants in Dhekelia, eastern Limassol and Ayia Napa, together with ongoing expansions of existing facilities, is expected to fully cover Cyprus' drinking-water needs.
Farmers deprived of recycled water
At the same time, Panayiotou said the failure to complete required sewerage projects and connect all premises to existing sewerage systems has deprived the agricultural sector of significant quantities of tertiary-treated water that could otherwise be used for irrigation.
According to estimates, full connection of all premises to existing sewerage networks would allow production of an additional 22 million cubic metres of recycled water per year.
Panayiotou noted that Cyprus has been under an EU infringement procedure since 2012 due to the failure to complete the required sewerage infrastructure.
She said all of the above measures are being implemented through broad cross-sector cooperation and fall within the responsibilities of the newly established district local government organisations, which are the competent authorities for the management, operation and completion of sewerage networks.
