Budget 2025 made reference to several sustainability and environment related initiatives. Various existing incentives relating to clean transport will be extended in the coming year. On infrastructure, mention was made of the continuation of the second interconnector and plans to look into zones for offshore floating wind turbines and solar farms. Furthermore, a national water irrigation management plan is being launched, together with a new bulky waste regeneration plant, as well as plans announced for more public green spaces around the island.
Carbon neutrality and transition to clean energy
Further development of the strategy for the transition to renewable energy at national level. Following the identification of zones for renewable energy projects, the government is looking into the use of wind energy in Malta’s exclusive economic zone as well as solar energy projects in territorial waters, including through floating windfarms and nearshore floating solar energy projects.
Continued assistance to residences investing in renewable energy including in relation to photovoltaic systems, renewable power storage batteries, heat pump water heaters, solar water heaters, the restoration of wells in old houses and water purification equipment.
Continuation of incentives to the private sector to support investments in large renewable energy installations.
Clean transport
Continued investment in the free public transport service including ferry services, through increased routes and vehicles, as well as further investment in the fast ferry service and other holistic projects aimed at increasing the use of mass maritime transportation.
Extension of sustainable transport schemes such as the grant schemes for the purchase of new electric vehicles (capped at €8,000 going forward - with existing commitment to higher grants for vehicles already ordered being respected), motorcycles (capped at €2,000), pedelecs, e-bikes, the scrappage of older vehicles, wheelchair accessible taxis, conversion or retrofitting of vehicles to run on gas or battery power.
Extension of the exemption from registration tax and first 5 years’ road licence for electric and plug-in hybrid vehicles.
A national strategy is to be published focusing on cycling as an alternative mode of transport as well as investment in an intelligent traffic management system.
The Environment: Urban and Green spaces, Water and Waste
In the coming years there will be further projects for the regeneration of public and green spaces, including at Hal Luqa, Hal Lija, San Giljan and Hal Kirkop.
A national water irrigation management plan is being launched whilst exploring mechanisms to combat climate risks faced by the agricultural and fisheries sectors.
To cut down on food waste, a new financial incentive to help food producers and retailers sell food products nearing their expiry date at discounted prices or donate them for social causes. This together with the establishment of a new food security authority.
Waste management measure for material remaining following the processing of organic waste to be transformed into clean energy and soil additives. Furthemore, a new plant shall be built in the coming months to separate bulky refuse and allow for the recycling of material such as wood and metal.
Assistance to fishermen to adopt clean practices and equipment which do not harm the environment.
Other
Foreign Direct Investment creating ‘green jobs’ in a new economic sector being renewable energy manufacturing, through the set-up of a factory producing wind turbine parts.
