Sustainable development a prerequisite for economic resilience, says expert
Sustainable development for Cyprus is not merely an environmental choice but is a prerequisite for economic resilience, social cohesion, and geopolitical stability, according to Athens University of Economics and Cambridge University Professor Phoebe Koundouri.
Speaking to the Cyprus News Agency (CNA), the globally recognised economist highlighted that Cyprus sits within one of the most vulnerable Mediterranean regions regarding climate change.
“The increase in temperature, water scarcity, and pressure on ecosystems require integrated, long-term planning,” Koundouri stated.
The energy transition constitutes a strategic opportunity for the country to redefine its economic model, she explained to the Cypriot agency.
Cyprus can invest in renewable energy sources, storage, and interconnections while focusing on smart water management and high-value sustainable tourism, Koundouri stated.
The development of green and digital skills can further strengthen competitiveness and create new employment opportunities, she added.
The key is a systemic approach involving data connection, scenario modelling, and cost-benefit analysis to transform strategic goals into funded projects, Koundouri said.
“Sustainable development for Cyprus – as for every country – is not simply an environmental choice; it is a prerequisite for economic resilience, social cohesion, and geopolitical stability,” she continued.
The transition is not only a technological or economic issue but is a matter of governance and institutional maturity, she told the news agency.
“If we move with scientific evidence, social participation, and strategic consistency, we can turn the poly-crisis into an opportunity for transformation,” Koundouri said.
Humanity currently lives in an era of permanent and interconnected poly-crisis where climate change and economic inequalities compose a unified system of risks, she told CNA.
The primary problem is not a lack of solutions, as the technology and financial resources to achieve the 17 Sustainable Development Goals exist, but an inability to implement them at scale, Koundouri explained.
The window until 2030 is decisive, as decisions made in the next three years will determine if the transition is orderly or leads to fragmented policies that increase instability, she warned.
Koundouri, who leads the Alliance of Excellence for Research and Innovation on Aeiphoria (AE4RIA), stated that her approach is based on a human-centric and multidisciplinary framework.
“We develop integrated analytical tools that unify nature, economy, and society into a single decision-making model,” she said.
The research group consists of more than 250 researchers and manages over 500 million euro in competitive funding across more than 120 countries, Koundouri added.
As the Head Scientist for the United Nations Global Sustainable Development Report 2027, she is contributing to the scientific basis that will guide governments in accelerating policy implementation.
“Our goal is to provide specific, actionable guidance and to strengthen accountability on a global level,” she explained to CNA.
Regarding her recent participation in the World Economic Forum in Davos, Koundouri observed that the dialogue was clear in stating the global economy is at a turning point.
Policies such as the European Green Deal and the “Fit-for-55” package signal a shift where competitiveness is linked to decarbonisation and innovation, she explained.
“The critical question is whether we will move towards a fragmented world, with national strategies of low cooperation, or towards a multilateral approach based on global common goods,” Koundouri stated.