Background information

In order to aid organisations to invest in technological solutions that improve energy efficiency and directly result in a reduction in energy requirements, the Malta Enterprise in collaboration with the Maltese Energy and Water Agency provide a cash grant, tax credit, or combination of both to this effect.

The measure, which has been in place for several years, was re-promoted as a 'new' measure in 2021 when re-packaged with other complementary measures.

Organisations can apply up until 31 October 2023, whilst support will be awarded up until 31 December 2023. Measures are to commence within six months of approval and must be completed within 36 months.

Content of measure

Eligible organisations are those duly registered within the EU as a partnership or limited liability company, has an operating base in Malta and adheres to applicable state aid regulations. The measure can be used for investment in substitution or upgrading of equipment and installations in order to reduce energy consumption; the renovation or upgrading of heating or cooling equipment; and the improvement of energy efficiency of existing illumination systems.

Eligible projects must entail an investment of at least €10,000 and provide proof from a competent person that the measure will result in energy saving of at least 10%. Only costs directly linked to the improvement in energy efficiency are eligible.

The total aid for an eligible project cannot exceed the maximum allowable aid intensity linked to the size of the organisation, with small organisations allowed 50%, medium 40% and large 30%. In other words, a large organisation could receive up to 30% of the cost of an eligible project. Thus, if a project cost €150,000 before VAT, the organisation through the scheme could receive €60,000. Furthermore, the investment aid cannot exceed €15 million per undertaking per investment project.

Use of measure

It appears that from 2021 onwards, €15 million has been earmarked for this measure.

During a press conference held in January 2023, the Minister for the Environment, Energy and Enterprise, Miriam Dalli, announced that by means of this measure and the Smart and Sustainable Scheme, around €500,000 had been disbursed to enterprises in Malta and Gozo over a period of a year.

Target groups

Workers	Businesses	Citizens
Self-employed	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Unknown

Involvement

The involvement of social partners in the designing of this specific measure is unknown. It is notable, however, that employer associations have been publicly asking for schemes that support organisations to make the green transition. For example, pre-2023 budget documents by the Malta Employers' Association, as well as the Malta Chamber call for measures that aid organisations to improve their energy efficiency. Employer associations have also organised meetings for their members to foster awareness of national measures that can be used to support organisations to improve energy efficiency, including the current measure.

Views and reactions

Views and reactions to this specific measure could not be found. However, Government efforts to make employers aware of the measures already available, including the current measure, by packaging them together received positive public support from Malta Chamber President Marisa Xuereb and Malta Chamber of SMEs President Paul Abela.

Sources

• 01 September 2020: Malta Enterprise - Investment Aid for Energy Efficiency Project (maltaenterprise.com)
• 26 May 2022: Business Now - Energy Ministry announces €5,000 grant for companies conducting energy audits (businessnow.mt)
• 19 January 2023: Malta Independent - More companies in hospitality sector investing in sustainable operations - government (www.independent.com.mt)