Major tourism investments, energy infrastructure projects, property developments and public works in Cyprus face delays after the Environmental Authority suspended assessments for projects affecting Special Areas of Conservation (SACs), following a ruling by the Court of Justice of the European Union (CJEU).
The decision stems from a recent CJEU judgment establishing that a valid assessment of a project’s environmental impact cannot be carried out unless specific and clearly defined conservation objectives have first been established for each protected area within the Natura 2000 network.
The issue has returned to the spotlight following a dispute between the Audit Office and the Ministry of Agriculture, Rural Development and Environment over the first phase of construction works at Akamas National Forest Park.
The suspension has far-reaching consequences for development across Cyprus. Investors and applicants behind major projects have been left waiting, as the Environmental Authority cannot process applications or issue approvals without the necessary legal framework.
Attention has now turned to the Environment and Forestry Departments and the Game and Fauna Service, which must accelerate the preparation of the relevant decrees and conservation objectives through a dedicated working group and scientific committee.
The working groups were established in April 2024. According to the Agriculture Ministry, their work has been hampered by technical and scientific difficulties, including insufficient data on the conservation status of species and habitats, alongside coordination problems between the authorities involved.
Until the process is completed, biodiversity protection must take precedence, with delays to environmental permits an unavoidable consequence.
EU court ruling blocks environmental assessments
In its judgment of 16 July 2026, the CJEU adopted a strict interpretation of Article 6(3) of the EU Habitats Directive (92/43/EEC).
Under the ruling, national authorities cannot carry out a valid appropriate assessment of a project affecting a Special Protection Area (SPA) or Special Area of Conservation (SAC) unless specific conservation objectives have already been established for the site concerned.
Although the geographical boundaries of protected areas can be determined without such objectives, assessing the risks or potentially significant effects of a project is not possible without predefined conservation targets.
The court also rejected requests to limit the temporal effects of its judgment, meaning the ruling applies retrospectively, including to pending plans and applications.
Consequently, the Environment Department cannot continue examining applications for appropriate assessments concerning SACs until the relevant site-specific conservation objectives have been established.
Legal Service orders suspension of applications
In an urgent letter to the Agriculture Ministry, the Republic’s Legal Service clarified the implications of the judgment, stressing that it applies in full to Special Areas of Conservation.
The Legal Service said the Environment Department must suspend its examination of both new and pending applications for appropriate assessments affecting SACs until the process of establishing specific conservation objectives is completed.
For Special Protection Areas, applications may continue to be examined only if the conservation objectives contained in existing management plans implemented by the Game and Fauna Service are clear, precise and meet the requirements established by European case law.
Projects that have already obtained environmental approval but have not yet been completed must be examined individually.
Such assessments must take into account the principle of good faith and the risk of serious disruption. The ruling does not affect projects that have already been completed.
Audit Office and Agriculture Ministry clash over Akamas
The issue featured prominently in a special report by the Audit Office concerning construction works at Akamas National Forest Park.
The Audit Office pointed out that the Environmental Authority issued a Special Ecological Assessment report and a Strategic Environmental Assessment opinion in 2021 without formally established site-specific conservation objectives.
According to the Audit Office, this resulted in serious shortcomings, the suspension of works and the need for restoration measures.
The report also recalled that the European Commission referred Cyprus to the CJEU in March 2024 over its failure to comply with the Habitats Directive.
According to the Commission, specific conservation measures had not been established for 28 of the country’s 37 Special Areas of Conservation, while conservation objectives for five sites were considered inadequate.
Responding to the findings, the Director-General of the Directorate-General for the Environment argued that extensive scientific knowledge, habitat mapping and management plans had been available when the Akamas plan was assessed and had been used to inform decisions.
He added that the assessment had followed the administrative practices and guidelines applicable at the time, before the CJEU issued its recent judgment.
The Agriculture Ministry is now at an advanced stage of preparing draft Protection and Management Decrees and formally establishing specific conservation objectives for Akamas and other Natura 2000 sites, in cooperation with the Legal Service.
The process is expected to be completed within the coming weeks.
European Commission takes Cyprus to court over conservation failures
On 18 February 2026, the European Commission brought legal proceedings against Cyprus, alleging failures to comply with Articles 4(4) and 6(1) of the Habitats Directive (92/43/EEC).
The Commission argues that the Republic of Cyprus failed to establish appropriate conservation objectives and measures for Sites of Community Importance within its territory by the required deadlines.
The application was published in the Official Journal of the European Union in April 2026, bringing several environmentally sensitive areas into focus.
The Commission is asking the court to declare that Cyprus failed to establish detailed, site-specific conservation objectives for five Special Areas of Conservation:
- Larnaca Salt Lakes
- Nisia Marine Area
- Machairas Forest
- Oroklini Lake
- Cape Greco
The Commission is also seeking a ruling that Cyprus failed to establish the necessary conservation measures for the following 24 Special Areas of Conservation:
- Alykos River – Agios Sozomenos
- Madari – Papoutsa
- Pitsilia Fountoukodasi
- Karkotis Valley
- Episkopi Morou Nerou
- Koili – Mavrokolympos
- Drymou Area
- Kritou Marottou Area
- Aspro Cape – Petra tou Romiou
- Limnatis Valley
- Asgata Area
- Larnaca Salt Lakes
- Lefkara Area
- Nisia Marine Area
- Moulia Marine Area
- Polis – Gialia Area
- Akamas Peninsula
- Machairas Forest
- Limassol Forest
- Troodos National Forest Park
- Stavrovouni Forest
- Cape Greco
- Rizoelia National Forest Park
- Paphos Forest
In addition, the Commission alleges that Cyprus failed to introduce appropriate conservation measures for four further Special Areas of Conservation:
- Diarizos Valley
- Vouni Panagias
- Xeros River
- Oroklini Lake
