Cyprus is making limited use of Cohesion Policy resources earmarked for the circular economy, according to a European Parliament study published on Friday. Based on commitment and spending rates, the study groups Cyprus with Croatia and Spain as the member states showing "very limited financial activation" of the resources planned for this purpose.
About the study
The study, titled "Circular Economy and Cohesion Policy Funds", was carried out at the request of the European Parliament's Committee on Regional Development (REGI).
It examines funding, implementation progress and the geographical distribution of circular economy investment under Cohesion Policy.
Cyprus among the lowest performers
According to the study, Cyprus, Croatia and Spain record very limited activation of funds, based on the rates of commitments and expenditure for planned circular economy resources.
By contrast, the Netherlands, Czechia, Finland, Austria and Belgium show comparatively higher rates of commitments and spending.
Focus on environmental infrastructure
In terms of how interventions are oriented, Cyprus is grouped with Hungary, Latvia, Malta and Romania among countries with centrally organised systems, in which support focuses mainly on environmental infrastructure.
€12.7 billion earmarked across the EU
At EU level, around €12.7 billion is earmarked for the circular economy in the 2021 to 2027 period through the European Regional Development Fund, the Cohesion Fund and the Just Transition Fund.
This amounts to 3.3% of the three funds' total portfolio of €380 billion.
Uneven distribution across the product life cycle
The study finds that support for the circular economy has become more visible in EU funding, but remains unevenly distributed across the life cycle of products and materials.
Of the planned resources, 48.4% is directed to waste recovery and management, 32.9% to interventions at the design and production stage, 11.7% to research and innovation and 7% to actions related to secondary raw materials.
Little focus on extending product life
The study notes that activities aimed at extending the life of products remain of limited visibility in the programmes examined.
Extending product lifespan is explicitly identified in just 1.3% of programmes, reuse and repair infrastructure in 7.2%, and circular business models in 3.9%.
Implementation progress
By March 2026, 50.8% of the resources planned for the circular economy had been committed and 8.6% had been spent.
For the three funds' portfolios as a whole, the corresponding figures were 57% and 11.8%.
Obstacles to implementation
The study identifies several barriers to implementation, including insufficient project maturity, administrative and procedural constraints, and limited readiness among beneficiaries, markets or local systems.
Recommendations for 2028 to 2034
For the next programming period, the study recommends, among other things, keeping the circular economy as a distinct element in National and Regional Partnership Plans, balancing support across the entire product life cycle, strengthening demand for circular products and secondary raw materials, and giving regional and local authorities a meaningful role.
It also calls for better coordination between European, national and regional funding instruments, and for linking investment to skills, employment, reuse and repair.
