The Green Mobility Scheme

On the 27 March 2024, Malta Enterprise has published a new set of guidelines in relation to the newly launched Green Mobility Scheme.

The Green Mobility Scheme is intended to support the transition to more sustainable transportation by accelerating the uptake of electric vehicles used in business for the transportation of goods and people, by supporting investment in recharging infrastructure required for vehicles which are an integral part of a business activity. The scheme shall also support leasing of clean or zero-emission vehicles. The scheme is designed to work in synergy with other existing measures facilitating a green transition in the transport of goods and people.

This measure will be open until 30 September 2026. 

Who is eligible for this scheme?

This is scheme is open for businesses that are registered with the Malta Business Registry at the time of application and employ at least 5 full-time employees. The applicant must ensure not to have any dues related to VAT, Income Tax, and Social Security or provide evidence of a repayment agreement with the respective department and proof that the agreement is being adhered to. Applicants requesting support on investment in charging infrastructure must have premises that are adequate for charging and which are categorised as commercial premises.

What costs are eligible under this scheme?

The costs that are eligible under this scheme include:

1. Investment in Charging Infrastructure

Malta Enterprise shall support the procurement, installation, and commissioning of private recharging infrastructure with smart recharging functionalities required by an undertaking to recharge industrial vehicles owned by the same undertaking.

Assistance may awarded as:

  1. a grant covering up to 100% of the interest paid during the 3 years on a loan issued by a recognised financial institution to fund eligible cost ;

and/or

  1. a tax credit calculated as a percentage of the eligible costs incurred.

The eligible costs shall include the costs of the construction, installation, upgrade or extension of recharging or refuelling infrastructure as well the costs of the recharging or refuelling infrastructure itself and related technical equipment, the installation of, or upgrades to, electrical or other components, including electrical cables and power transformers, required for connecting the recharging or refuelling infrastructure to the grid or to a local electricity or hydrogen production or storage unit, as well as civil engineering works, land or road adaptations, installation costs and costs for obtaining related permits.

Eligible costs may also cover the investment costs of on-site production of renewable electricity or renewable hydrogen, and the investment costs of storage units for storing renewable electricity or hydrogen. The nominal production capacity of the on-site renewable electricity or renewable hydrogen production installation shall not exceed the maximum rated output or refuelling capacity of the recharging or refuelling infrastructure to which it is connected.

The aid intensities vary between 20%-55% depending on the size of the undertaking and the location of the project.

2. Lease of Commercial Vehicles

Malta Enterprise may also provide support, through tax credits, the leasing of commercial vehicles for a period of at least 12 months of:

a) clean vehicles powered at least partially by electricity or by hydrogen; or

b) zero-emission vehicles

The scheme shall cover up to 36 months of the lease period commencing from the start of the lease. No support shall be approved on leases that have commenced prior to the approval of Malta Enterprise. Malta Enterprise may on request of the applicant, allow that a lease commences following the submission of the application but prior to the approval of any support and on condition that the applicant acknowledges that such a concession does not guarantee that any support will be approved.

A tax credit may be awarded to cover a percentage of the extra costs of leasing the clean vehicle or the zero-emission vehicle. These shall be calculated as the difference between the net present value of leasing the clean vehicle or the zero-emission vehicle and the net present value of leasing a vehicle of the same category that complies with applicable Union standards already in force and would have been leased without the aid. For the purposes of determining the eligible costs, the operating costs linked to the operation of the vehicle, including energy costs, insurance costs and maintenance costs, shall not be taken into account, irrespective of whether they are included in the leasing contract.

The aid intensities vary between 20%-60% depending on the size of the undertaking and whether the vehicles in question are “clean vehicles” or “zero emission vehicles”.

Projects should wait for the Approval of the Corporation before Start of Works occurs. In terms of the regulation governing these Incentive guidelines, Start of Works refers to the earlier of either:

- the start of constructions works
- the first legally binding commitment that makes the project irreversible

If you require further guidance or details in relation to this process, please do not hesitate to contact us so that we may assist you.

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