Buried decisions continue to haunt Cyprus’ landfill crisis

€23 million goes in the bin Parliament’s rejection on Tuesday of legislation introducing a municipal waste landfill tax has left Cyprus facing the loss of €23 million in European funding. The proposed tax would have introduced a charge of €10 per tonne of municipal waste sent to landfill until the end of next year, increasing by €5 per tonne annually from 2028 until reaching €70 per tonne. The government argued that the measure was necessary to meet European environmental obligations and unlock funding from the Recovery and Resilience Plan. Speaking to the Cyprus Mail, the agriculture ministry said the rejection would prevent the disbursement of €23 million for waste management modernisation projects by local authorities, which together with national co-financing would have created resources of approximately €48 million. The ministry said the current government had inherited “accumulated problems, serious infrastructure deficiencies and specific European commitments” and had reduced the proposed charge from an original €35 per tonne to €10 per tonne after consultations with the European Commission. It argued that the cost to households would have been less than €1 per month, estimating an annual burden of around €10 per household in 2027. Agriculture Minister Maria Panayiotou (Photo: Christos Theodorides) “The current government took over a sector with accumulated problems,” the ministry said, adding that the plan had been presented to parliament and was being implemented with the assistance of specialised consultants, including the European Commission’s advisory body JASPERS. However, opponents of the legislation argued that the tax would place the cost of failures in waste management on households and municipalities before the infrastructure required for recycling and waste separation had been created. The Union of Municipalities welcomed the rejection, saying it confirmed its position that local authorities and the public should not bear the financial consequences of state failures in developing the necessary waste management systems. “Local government and citizens cannot be expected to shoulder the burden of the state’s shortcomings in creating the necessary infrastructure and conditions for the effective management of waste,” the union said. The municipalities argued that Cyprus was being asked to introduce a financial penalty system despite continuing reliance on landfills. Around 68 per cent of municipal waste currently ends up in landfills, compared with the European Union target of reducing landfill use to 10 per cent by 2035. The government presented the landfill tax as an environmental measure designed to change behaviour, arguing that higher landfill costs would encourage recycling and source separation through the “Pay as You Throw” system. Around 68 per cent of municipal waste currently ends up in landfills, compared with the European Union target of reducing landfill use to 10 per cent by 2035 Opponents said that system should have been introduced first, allowing households to reduce their waste charges through better separation and recycling. Disy MP Andreas Constantinou said the party had serious reservations because “Pay as You Throw” had not been implemented before the landfill tax. He said the state carried “serious responsibilities” for failing to establish the conditions needed for the system to work. Speaking to the Cyprus Mail, Akel MP Nikos Kettiros described the proposed levy as a “government incompetence tax” rather than a green tax, arguing that Cyprus would continue sending waste to landfill even if the legislation passed. “The infrastructure does not exist,” he said, arguing that the public were being asked to pay for failures they did not cause. The debate over the landfill tax has also highlighted the wider difficulties surrounding the introduction of the “Pay as You Throw” system, which authorities had presented as a key mechanism for reducing waste and encouraging separation at source. Although pilot schemes have operated in certain municipalities such as Aglandjia, the system has faced delays due to the lack of the infrastructure required to manage separate waste streams. The scheme was designed around households purchasing specially issued bags for residual waste, with the aim of reducing the amount thrown away by rewarding residents who separate recyclable and organic material. However, officials have warned that Cyprus still lacks the facilities needed to process the waste streams that such a system would generate. “There is no existing infrastructure in the country for managing organic waste,” former House environment chairman Charalambos Theopemptou said. He argued that households currently pay around €180 to €200 annually for waste management and that the incentive behind “Pay as You Throw” should be that those who sort their waste pay less. “Logically, any proposed pay-as-you-throw fee ought to be lower than this amount, which is not looking feasible at present,” he said. Agriculture Minister Maria Panayiotou told MPs that specially issued rubbish bags could cost households between €150 and €250 annually, acknowledging that the figure was “higher than what each household currently pays” for waste management. She said the initial cost reflected the transition period before households began properly sorting waste at source. Theopemptou said the country had six years since discussions on circular waste management began in 2018 to prepare the necessary foundations but that key elements remained incomplete. The system also relies heavily on the operation of Green Dot Many communities still lack basic recycling infrastructure, including sorting bins, collection points and specialised vehicles for separate waste streams. The system also relies heavily on the operation of Green Dot, which manages much of the island’s packaging recycling network. Local officials have previously warned that Green Dot’s coverage has not historically extended equally across all areas, particularly communities outside municipal boundaries, where local authorities have had to arrange and finance recycling services themselves. The planned expansion of recycling infrastructure remains part of current government efforts. On Thursday, the agriculture ministry said Cyprus was developing a network of 36 Green Points and 50 Green Kiosks intended to manage bulky waste, electrical items and recyclable materials. Twenty-six Green Points are currently operating, with additional facilities planned through state funding and Recovery and Resilience Plan resources. The ministry said the kiosks were intended to serve mountainous and remote communities where collection services were more difficult to provide and that 20 of the 50 planned kiosks would include facilities for separate collection of bulky municipal waste. It also said Green Dot was expected to receive renewed approval as a collective packaging waste system, with a condition requiring nationwide geographical coverage. The government has also said it is strengthening oversight of producer responsibility rules, requiring companies placing packaged goods on the Cypriot market to participate in a collective system such as Green Dot or establish their own waste management arrangements. Cyprus began developing waste management facilities after joining the European Union in 2004 and facing pressure to comply with European regulations restricting landfill use. The first sanitary landfill facility was developed in Paphos in 2005, followed by the Koshi integrated waste management facility serving the Larnaca and Famagusta districts. The Pentakomo waste treatment facility in Limassol was later developed as the main project for the region, designed to process municipal waste, recover recyclable materials and produce secondary fuel. The controversy over Pentakomo has also brought renewed scrutiny of the decisions taken during the preparation of the project, including the tender process and the technical specifications used for the facility. Speaking to the Cyprus Mail prior, former Pentakomo operator Loizos Afxentiou placed part of the responsibility on decisions taken during the tendering stage, including those involving current Alma president Odysseas Michaelides, who at the time was director of the Tender Board at the Public Works Department. Loizos Afxentiou has all the documents archived Afxentiou alleged that Michaelides pushed for changes to the tender documents which allowed a lower-cost proposal to proceed, despite concerns raised by European experts regarding whether the facility would have a suitable outlet for the secondary fuel it was designed to produce. “He is the one who reviewed and amended the tender documents, especially as regards the secondary fuel,” Afxentiou said, adding that European officials had urged changes to ensure the material produced by the plant could be disposed of. Afxentiou argued that the decision contributed to later difficulties at Pentakomo, including the storage and eventual burial of secondary fuel produced by the facility. The plant was intended to separate recyclable materials, process waste and produce secondary fuel as part of a wider circular economy approach. “Cyprus screwed up big time” with waste management, he said, claiming that authorities failed to address problems identified during the development and operation of the facility. He alleged that the state had not secured a buyer for the secondary fuel produced by Pentakomo, despite commitments made during the approval process. The material was eventually stored at the facility and later buried, creating further controversy over whether the plant was being used in accordance with its original purpose. Afxentiou also raised concerns over the quality of waste entering the facility, claiming industrial materials and unsuitable waste streams were contaminating municipal waste and affecting operations. The government has disputed aspects of the criticism surrounding Pentakomo and has said steps are being taken to improve waste management operations, including the appointment of a new contractor expected to take over management of the facility by 2027. The agriculture ministry said the government had secured additional funding for municipalities and expected future improvements in waste treatment capacity. It said the rejection of the landfill tax did not cancel its waste management plans but removed resources intended to support local authorities. “Today’s vote against does not cancel the government’s plan,” the ministry said. The ministry has argued that the landfill tax was not intended simply as a revenue measure but as an environmental tool aimed at reducing the volume of waste sent to landfill. According to government figures, increasing recycling and source separation would gradually reduce the quantities subject to taxation and support compliance with European targets. Opposition parties have argued that the order of reforms was wrong, saying taxation should follow the creation of functioning recycling, sorting and processing systems. They have pointed to the delays surrounding Pay as You Throw, the limited capacity of existing treatment facilities and the continued dependence on landfill as evidence that Cyprus introduced financial measures before completing the necessary groundwork.