Sustainability and the Environment

Incentivising sustainable businesses

• Higher cash grants for companies investing in digitalisation. Aid under the current Malta Enterprise scheme will increase to 50% of eligible investment costs capped at a maximum of €100k. Businesses operating in Gozo and start-ups will benefit from an additional 10% in the form of tax credits, increased to 20% for projects reducing their operation’s carbon footprint.

• Tax credits of up to €40k for investments in digitalisation, projects that reduce energy and water consumption, and investments aimed at increasing efficiency by reducing waste and excess raw materials. The scheme will be available for all enterprises, including SMEs, self-employed, and family businesses.

• Guidelines to be issued by Malta Enterprise for businesses to achieve ESG credentials. Technical support will be provided to SMEs in this respect, in collaboration with other EU Member States.

Urban development and physical infrastructure

• Continuation of various infrastructural projects around Malta and Gozo, including a €60m investment in Gozo under the Sustainable Urban Development initiative. 

• Grants under the RRP scheme for renovations of private sector buildings, valued at around €20 million, will continue throughout the coming year.

• The setting up of a new agency to coordinate environmental and green urban reclamation projects, continuation of works in parks, gardens and open spaces and the rehabilitation of valleys.

• Building of underground car parks and conversion of current car parks into public open spaces.

• Waste collection and management projects will allow for the reduction of waste and increased waste separation, increased recycling, the conversion of organic waste into energy and agricultural compost, and the reduction of bulky waste from landfills.

Transportation and shipping

• Commitment to continue dredging port beds.

• A €50m project for the installation of power systems that allow large passenger and merchant vessels to connect to the national grid while they are docked at port. This will reduce air pollution particularly around the Grand Harbour area.

• A €1m investment in electric public transport vehicles.

• Extension of Transport Malta schemes: 

  • €11,000 grant for the purchase of electric vehicles or motor bikes with an additional €1,000 (rising to €2,000 in Gozo) granted when scrapping a vehicle;

  • Grants supporting the purchase of mopeds, pedelec bikes and electric bikes;

  • Grant for those who change their vehicle to run on gas instead of petrol.

• Exemption from registration tax and annual road licence on electric vehicles and plug-in electric vehicles for five years from the date of first registration.

• Further measures to incentivise the use of electric vehicles, such as the installation of an additional 1,200 charging stations by 2024 and the provision of interest-free financing to the private sector to switch their fleet to electric vehicles.

• A maximum grant of €900 to encourage operators of minibuses, coaches and trucks to install Diesel Particulate Filters (DPF) as well as Selective Catalytic Reduction (SCR) systems and PV panels.

• New ferry landing stations in Bugibba and Marsamxett.

• Continue investing in better connectivity between Malta and Gozo through a 2-year public service contract with fast ferry service providers and the extension of the existing runway in Gozo.

Agriculture, Farming and Fisheries

• Various sustainability measures are under way for the agriculture, farming and fisheries sectors. These include: 

  • A national action plan for organic food production;

  • Carbon farming;

  • Amendment to the Agricultural Leases (Reletting) Act;

  • Grants and other financial support to the fishing industry.

Energy and Water

• Continuation of energy projects such as the second interconnector cable and electricity distribution network.

• Introduction of measures to improve efficiency in water consumption. These include reuse of greywater and treatment of water discarded by businesses located alongside the Maltese coast. 

• Total investments of around €19m in the reverse osmosis and Sant’Antnin plants to increase water reserves and improve wastewater treatment.

Investment in Renewable Energy Sources

• Extension of the following energy saving schemes:
  
  
  • Solar panel installations and batteries for the storage of renewable energy;
  • Heat pump and solar water heaters;
  • Restorations of old houses’ wells.

• Allocation of funds for investment in renewable energy sources, including new or extended feed-in tariff schemes for residential houses.

• Financial support for private investors to invest in the development of offshore renewable energy sources.