Cyprus Institute Professor cautions on the additional €20m "invisible cost" of the Limassol fires

14:36 - 28 July 2025

Economy Reporter

The final cost of the major fire in the Limassol district is not limited only to compensation to citizens and businesses for the damage they suffered and the cost of repairing the water and electricity infrastructure in the area.

According to a social media post by Cyprus Institute Professor Theodoros Zachariadis, it cannot be ruled out that the final cost will increase by up to €20 million, due to the environmental destruction, temporary or permanent, as a result of the loss of the burned ecosystem, which is not counted in the costs.

This is an invisible cost that is not reflected in accounts and budgets, as it is not part of the economic mechanisms of the market. However, it exists, with impacts that extend over time and affect society in many ways.

As Professor Zachariadis explains in his post, we will all pay this environmental cost gradually, through:

Increased medical costs due to health problems caused by air pollution
Flood control projects to address phenomena that will worsen due to the loss of natural vegetation.
Higher transportation and recreation costs, as citizens will have to seek out natural landscapes in areas not affected by the fire,
Increase in prices and decrease in quality of agricultural and livestock products, due to environmental degradation.

These additional fire costs, Zachariadis concludes, highlight the need for substantial prevention: Firebreaks, controlled grazing, land management and investments in preventive measures that can prevent multiple losses in the future.

Cyprus Institute Professor cautions on the additional €20m "invisible cost" of the Limassol fires

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