Background information

Malta Enterprise in collaboration with the National Energy and Water and Agency aims to support investments in tangible assets procured to achieve a higher level of energy efficiency. The investments should translate in energy savings of at least 20%. Besides, one should note that this aid puts a particular emphasis on supporting green initiatives such as waste management.

Content of measure

This aid is in the form of a tax credit that covers a percentage of the costs based on the size of the undertaking: Small undertakings may benefit from 50% of their costs, while medium undertakings may benefit from 40% and large undertakings may benefit from 30%. Applications are processed on a first-come-first-served basis until the budget allocated for this measure is fully utilised. A minimum investment of €25,000 should be done to create energy savings.

This incentive is available to undertakings that are duly registered in the European Union and that have an operating base in Malta. To qualify, applicants must operate in one of the following core activities: manufacturing; repair, overhaul and maintenance of aircraft and/or electromechanical equipment; information hosting and/or processing; waste treatment; accommodation and food service activities; packaging activities; human health and social work activities; and washing and dry-cleaning of textiles. Other activities not mentioned in the list above may also be eligible as long as their investment would translate in energy savings of at least 20%.

Eligible applicants must conform to the applicable state aid regulations. If an undertaking is engaged in activities in addition to the aforementioned eligible core activities, funding must translate in energy efficiency in the operation of the eligible core activities.

The guidelines could be clearer, as although they stipulate that applications should be submitted by the end of April, they fail to mention that late applications are accepted until the end of the year, on condition that the allocated funds are not exhausted. The €25,000 that applicants must invest in order to be eligible might also be viewed as too large a sum for smaller companies to even consider applying for this aid.

Use of measure

During the budget speech for 2024, it was announced that this scheme would be extended. No evidence that it was re-opened during 2024 was identified, however.

During a press conference in 2023, Minister for the Environment, Energy and Enterprise, Miriam Dalli, highlighted that through his measure and one other termed the Smart and Sustainable Scheme, Malta Enterprise had disbursed around half a million Euro in support to businesses in just one year.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	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:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 01 March 2019: Investment Aid for Energy Efficiency Projects (www.maltaenterprise.com)
• 19 January 2024: Malta Independent - More companies in hospitality sector investing in sustainable operations - government (www.independent.com.mt)