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Sustainable Bond Framework

• Republic of Cyprus' national sustainability objectives Commitments to Paris and beyond Cyprus ratified the Paris Agreement and committed to limiting global warming to well below 2 degrees Celsius. Cyprus commits to the relevant climate and energy targets set by the EU for 2030, including reduction of GHG emissions, increasing energy efficiency & share of renewable energy in the energy mix. In 2015, Cyprus committed support to the 17 Sustainable Development Goals ("SDGS") of the United Nations. XD 8 SUSTAINABLE DEVELOPMENT GOALS PARIS2015 UN CLIMATE CHANGE CONFERENCE COP21.CMP11 Cyprus has a number of national sustainability strategies These strategies reflect a commitment to address environmental and social vulnerabilities and advance the UN SDGs. The National Energy and Climate Plan, published Jan 2020, established the following targets: . • • Reducing greenhouse gas emissions by at least 20.9% compared to 2005 in sectors not covered by the EU Emissions Trading System. Emissions from land use/change/forestry are offset by at least equivalent removal of CO2 from atmosphere. By 2030, reducing final energy consumption by 13% and primary energy consumption by 17% vs 2007 levels. Increasing the share of renewable energy sources in energy consumption. The Recovery & Resilience Plan 2021-26: Established as a beneficiary of the EU's response to COVID-19, through the EU Recovery & Resilience Facility ('RRF'), Cyprus received €157m in Sep 2021, with €1.2bn expected over lifetime of plan. Cyprus intends for sustainable borrowing under Green, Social and/or Sustainable Instruments to complement the initiatives under the Recovery and Resilience Plan. RRF allocation to Cyprus (€1.2 bn) 250 200 150 100 50 2021 2022 2023 2024 2025 2026 2027 Grants (Total EUR 1 bn) Loans (Total EUR 0.2 bn) Source: Ministry of Finance, University of Cyprus CO 6
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