Cyprus achieves rare ‘decoupling’ of economic growth and emissions

Cyprus recorded a 5.2 per cent reduction in greenhouse gas emissions in the third quarter of 2025 compared with the second quarter of 2025, placing it among the EU countries that achieved notable declines, according to Eurostat.

The largest reductions across the bloc were estimated in Estonia, where emissions dropped by 17.4 per cent, followed by Slovenia with a decline of 5.7 per cent and Cyprus with a 5.2 per cent decrease.

Out of the 10 EU countries that registered decreases in greenhouse gas emissions, only Lithuania also recorded a decline in GDP.

The remaining nine countries, Bulgaria, Estonia, Croatia, Cyprus, Latvia, Lithuania, Portugal, Romania and Slovenia, managed to reduce or maintain their emissions while growing or maintaining their GDP levels.

For Cyprus, the data underline a decoupling trend in which emissions fell despite economic stability or growth, positioning the island among the EU member states that combined environmental improvement with sustained output.

Across the EU economy, seasonally adjusted greenhouse gas emissions reached 828 million tonnes of CO2-equivalents in the third quarter of 2025, marking a 1.1 per cent rise compared with the second quarter of 2025.

The second quarter of 2025 had recorded 819 million tonnes of CO2-equivalents, placing the latest quarterly estimate at a higher level despite continued economic expansion.

At the same time, the EU’s gross domestic product increased by 0.4 per cent in the third quarter of 2025 compared with the previous quarter.

The figures were drawn from seasonally adjusted quarterly estimates of greenhouse gas emissions by economic activity, which are released alongside key socio-economic indicators.

What is more, Eurostat explained that the quarterly estimates of greenhouse gas emissions are designed to complement data on GDP and employment.

The agency said that the publication summarised the main findings from its more detailed Statistics Explained article on quarterly greenhouse gas emissions.

Among economic activities, households recorded the largest increase in emissions, rising by 3.6 per cent in the third quarter compared with the previous quarter.

Manufacturing emissions also climbed, registering a 1.4 per cent increase over the same period.

By contrast, electricity, gas, steam and air conditioning supply was the only sector to report a decline, with emissions falling by 0.8 per cent quarter-on-quarter.

Across the bloc, greenhouse gas emissions increased in 17 EU countries in the third quarter of 2025 when compared with the second quarter of 2025, while emissions decreased in 10 countries over the same period.