European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure MT-2021-18/1929 – Updated – measures in Malta

Smart and Sustainable Investment Scheme

Country Malta , applies nationwide
Time period Temporary, 27 April 2021 – 30 November 2026
Context COVID-19, Green Transition
Type Other initiatives or policies
Category Reorientation of business activities
– Change of production/Innovation
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Measure added 05 July 2021 (updated 22 October 2025)

Background information

A series of measures to aid businesses impacted by COVID-19 were announced by the Prime Minister Robert Abela on 27 April 2021. Many of these extended measures that were already in place, such as those that provide subsidies for organisations' electricity and rental bills. Among these measures was a measure to support start-up companies and promote green jobs.

Content of measure

Termed the 'Smart and Sustainable Investment Scheme 2021,' the scheme aims to foster investment and policy direction in new economic areas in line the European Green Deal.

Although details about the allocation and limitations of this measure are not available, it was announced that the scheme will include incisive aid in the form of cash grants up to €50,000 and additional support in the form of tax credits.

Larger cash grant will be provided when investments are made in Gozo, investments are made by start-up companies and investments directly create new green jobs.

The measure will be managed and overseen by the Malta Enterprise.

Updates

The following updates to this measure have been made after it came into effect.

01 December 2024

The relevance of this measure was re-highlighted as it was listed in Malta's National Energy and Climate Plan as one of the key measures to provide enterprises with support for green measures.

04 April 2024

The measure was extended and has an annual budget of €2,000,000. The measure is open to limited liability companies, partnerships or self-employed and is engaged in an economic activity that operates from a commercial property and employs at least one full-time individual. The maximum grant remains as per 2023. In order to avail of the additional tax credit, applicants must achieve one or more of the following criteria. The amount provided depends on the number achieved and the cost of the project: (i) the project results in new investment in Gozo; (ii) The project is carried out by an undertaking which has been established for less than three (3) years; (iii) The project is supported by an independent energy audit conducted by a qualified energy auditor or engineer; (iv) The project achieves at least 50% carbon emission savings as evidenced by the carbon footprint report.

01 March 2023

Updated guidelines by the Malta Enterprise for this measure indicate an increased maximum grant of €100,000 per project, as well as a tax credit of up to €40,000 per project.

07 October 2021

Further details of this measure were announced. The measure, which is open for applications until 30 November 2023, supports enterprises planning to make changes that improve sustainability, environmental performance or digitisation leading to growth potential. Costs incurred prior to approval are not eligible, whilst the supported measures must be completed within 12 months of the application being approved, whilst the benefitting enterprise must maintain the investment for a minimum of 3 years. The minimum investment must be of €10,000, whilst the maximum grant awarded will cover 50% of the eligible expenditure up to a maximum grant of €50,000 per project. Additional funding as a tax credit (up to an additional 20% - or 70% of the eligible expenditure) can be awarded depending on if the applicant meets a number of the following conditions: (i) the project results in new investment in Gozo; (ii) the enterprise has been established for less than three years; (iii) the applicant provides a carbon footprint audit and assessment illustrating that the project will result in a significant reduction.

Eligible investments include those that aim to achieve; waste minimisation; sustainable materials; energy and waste efficiency; and sustainable digitalisation.

Use of measure

This measure began accepting applications in October 2021 and has a budget of €5 million.

In August 2022 there was press conference and visit to a large Maltese bakery that had made use of the system to highlight the benefits of this measure. This event was attended by Miriam Dalli, the Minister for Environment, Energy and Enterprise, and by the CEO of the Malta Enterprise, Kurt Farrugia. The bakery installed a system where water was used to cool the premises making the organisation’s operations more sustainable. The Chairman of the Bakery noted that the new system allowed for a lower temperature within the factory, thus improving the working environment for workers, while saving the organisation as much as 85% in electricity consumption, and reducing CO2 production by 90%. This also allowed the organisation to be more competitive.

On 19 January 2023, the Minister for the Environment, Energy and Enterprise, Miriam Dalli, announced that this measure and the complementary Investment Aid for Energy Efficiency Projects Scheme distributed about €500,000 over a period of a year.

During a December 2023 press conference, it was highlighted that the project had supported 16 private organisations to invest in green projects and distributed about €1 million to this goal.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
European Funds
National funds
National Recovery and Resilience Facility

Social partners

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

Trade unions Employers' organisations
Role Unknown Consulted
Form Not applicable Direct consultation outside a formal body

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

  • Unknown
  • Main level of involvement: Unknown

Involvement

The involvement of social partners in the development of this specific measure is unknown. However, the measure was announced along with a package of measures which aimed to stimulate economic activity. In relation to the announced package of measures, a number of employer associations highlighted how they had been in regular consultation with the government and that the package of measures reflected their input. These included the Chamber for SMEs, the Malta Hotels and Restaurants Association, the Malta Chamber of Commerce, Enterprise and Industry (known as the Malta Chamber) and the Gozo Business Chamber.

Views and reactions

Several Employer Associations commented on the package of measures of which the current measure formed part of. Comments on the overall package of measures was favourable. Reactions were provided by: the Chamber for SMEs, the Malta Hotels and Restaurants Association, the Malta Chamber of Commerce, Enterprise and Industry (known as the Malta Chamber) and the Gozo Business Chamber.

The Malta Chamber made specific reference to the ‘Smart and Sustainable Investment Scheme’ stating that it is well-aligned to their economic vision for 2020-2025, titled ‘Smart, Sustainable Island’.

In an undated article on their website, the Malta Employers Association stated that this measure was introduced "in response to the private-sector’s positive reaction to orientate their operations towards carbon neutrality."

Sources

Citation

Eurofound (2021), Smart and Sustainable Investment Scheme , measure MT-2021-18/1929 (measures in Malta), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/MT-2021-18_1929.html

Share

Eurofound publications based on EU PolicyWatch

All publications are available on the EU PolicyWatch landing page .

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.