Combating climate change is an economy-wide endeavour, which calls for an exploration of the broader socio-economic impact of energy and climate policies. By linking energy systems models with air emissions models as well as micro- and macro-economic models, EPA assesses the effect of decarbonization strategies on air pollution, economic development, employment, and social equity. Where quantitative assessment is not possible, stakeholder participation is used and analysed with multi-criteria assessment tools, to provide actionable knowledge to decision makers for addressing the multitude of policy impacts.
Such approaches have been used for the economic and environmental impact assessment of the National Recovery and Resilience Plan of Cyprus in 2021, the exploration of deep economy-wide decarbonisation options, and the analysis of green economic recovery measures in collaboration with the World Bank in 2020-21. EPA often applies the same tools on an ad hoc basis to support the Cypriot government in setting investment priorities in specific occasions (e.g. by revenues generated in the EU Emissions Trading scheme or through the support of the EU’s Just Transition Fund).