Cyprus is projected to generate €73 million per year in national revenue from the European Union's carbon market for shipping, according to a new study cited by Cyprus Mail.
The figure represents a significant new income stream for the island, which hosts one of the world's largest merchant fleets by tonnage.
The revenue will be derived from the EU Emissions Trading System (EU ETS), which now covers maritime emissions.
Under the mechanism, shipping companies must surrender allowances for their carbon output, with a portion of the auction proceeds retained by the flag state of the vessel.
While the €73 million estimate is substantial for Cyprus, the study notes that countries with smaller maritime industries are set to receive disproportionately larger sums per unit of fleet size, reflecting the complex allocation rules of the new regime.
This development marks a structural shift in Cyprus's public finances.