Two financing schemes to support your sustainable projects

Malta Enterprise is offering Maltese companies two schemes to support them in their transition to a more environmentally friendly model. “The smart and sustainable investment grant” and “The investment aid for energy efficiency projects” allow businesses to switch to sustainable business models through digitisation and a reduction of their energy requirements.

The smart and sustainable investment grant

Transitioning to a digital and environmentally sustainable business model, is one of the objectives set by the EU to achieve climate neutrality by 2050. Malta Enterprise’s Smart and Sustainable Investment Grant provides business funding to support the undertaking of investments leading to the enhancement of competitiveness of the enterprises through the optimisation of the use of resources in their activities.

Eligibility criteria and deadline

Limited liability companies, partnership or self-employed registered with the Malta Business Register, which are engaged in an economic activity that operates from a licensed commercial property, are eligible if they satisfy the following criteria:

• Planning an investment project of at least €10,000 having the aim to achieve sustainability, improved environmental performance or digitisation leading to growth potential;
• Must not have any dues related to VAT, Income Tax, and Social Security which are older than twelve (12) months;
• Must not be engaged in activities specifically excluded under the de minimis Regulation; and
• Must have at least one full time employee registered with Jobsplus (a full time self-employed person is considered to meet this criterion).

The maximum grant that can be awarded to support an eligible investment shall cover 50% of the eligible expenditure up to a maximum grant of €50,000 per project.

Furthermore, a Tax Credit of up to €20,000 per project may be awarded as an additional 10% (to 60%) if the project meets one of the following criteria and 20% (to 70%) if the project meets any two of the following criteria:

• The project results in new investment (including expansion of existing investments) in Gozo;
• The project is carried out by an undertaking which has been established for less than three (3) years; and
• The project is supported by an independent carbon footprint audit and assessment demonstrating a significant reduction in the applicant’s carbon footprint.

The costs that would be eligible under this scheme mainly relate to waste minimisation, sustainable materials, energy efficiency, water efficiency and sustainable digitalisation. A business can apply for this scheme until 30 November 2023.

Further information about the scheme are available at Smart and Sustainability Development Grant (V 1.0).pdf (maltaenterprise.com)

Investment aid for energy efficiency projects

Malta Enterprise Corporation in collaboration with the Energy and Water Agency are supporting businesses which intend to invest in technological solutions that provide higher energy efficiency and contribute directly towards a reduction in their energy requirements. The aid awarded through this measure shall be in the form of a cash grant or a tax credit (which may be utilised against tax payable by the beneficiary) or a combination of both.

Eligibility criteria and deadline

Businesses would be eligible for this grant if they are registered in the European Union as a partnership en nom collectif, en commandite or a limited liability company or a similar set-up, has an operating base in Malta, and which adhere to the applicable State Aid regulations.

They must also satisfy the following criteria:

• Project must entail an investment of at €10,000 that is directly related to achieving energy savings; and
• Provide a corroborated justification from a competent person that the resultant estimated energy saving to be achieved as a result of implementing the proposed investment will be of at least 10%.

The investment aid will not exceed €15 million per undertaking per investment project.

• A ‘small’ undertaking would be eligible for 50% of the costs;
• A ‘medium’ undertaking would be eligible for 40% of the costs; and
• A ‘large’ undertaking would be eligible for 30% of the costs.

Only costs directly linked to the achievement of a higher level of energy efficiency shall be considered eligible. A business can apply for this scheme until 31 October 2023.

Further information about the scheme are available at  Incentive Guidelines Energy Efficiency Version 3.0 FINAL.pdf (maltaenterprise.com)

How we can help

Our professionals are ready to answer all your questions and support you in the preparation of the documents required to access the grant and follow up on the application. Get in touch with us now using the contacts below.