The Smart & Sustainable Investment Grant

On 2 April 2024, Malta Enterprise published a new incentive to extend the Smart and Sustainability Investment Grant. The Smart and Sustainable Investment Grant provides business funding to support investments that lead to more sustainable processes which lead to the enhancement of competitiveness of the enterprise through the optimisation of the use of resources in their activities. This scheme will be available until 18th December 2026.

Who is eligible for this scheme?

Eligible applicants include:

  • Limited liability companies registered with the Malta Business Register, partnerships or self-employed
  • Operate from licenced commercial premises
  • Planning an investment project of at least €10,000 having the aim to achieve sustainability, improved environmental performance or digitisation leading to growth potential
  • Employ at least one full time employee registered with Jobsplus

Ineligible Applicants are:

  • Undertakings engaged in activities specifically excluded under the de minimis Regulation
  • Applicants that are defaulting on Income Tax, VAT or Social Security Contribution payments

 What costs are eligible under this scheme?

This scheme aims to support investments and modifications in plant, machinery, equipment and technologies that lead to a quantifiable reduction in CO2 emissions of at least 10% (directly in relation to the investment). The CO2 savings must be clearly substantiated through the submission of a carbon footprint report compiled by a warranted engineer or competent person as may be acceptable to the Corporation.

Eligible investments may also include specialised technical services and procurement of technologies that enable the undertaking to measure parameters linked to the undertaking’s carbon footprint. Such investments should have the scope of identifying actions to reduce carbon footprint. Aid for these cost items must be incorporated within an eligible sustainability project and shall be capped at 20% of the total amount approved. Any technical service must be provided by unrelated parties and must be covered by a contractual agreement of which only the initial12 months shall be eligible. Should a project be supported, the beneficiary must also commit to maintain the investment for a minimum of 3 years.

Eligible expenditure includes:

  • Waste Minimisation - Reducing materials use per unit of production.
  • Sustainable materials  - Costs reducing impact of product on global environment
  • Energy Efficiency - Reducing energy use per unit of production.
  • Water Efficiency - Reducing water use per unit of production.
  • Sustainable Digitalisation - Adopting digital solutions to enhance environmental performance

What is the maximum support which may be awarded?

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 €100,000 per project. Malta Enterprise announced that applications will be considered on a case-by-case basis and the level of funding will be determined following an assessment of the proposed investment and implementation plan.

Furthermore a Tax Credit of up to €40,000 per project may be awarded as an additional 10% (to 60%) if the project meets one  of the below criteria and 20% (to 70%) if the project meets any two of the below criteria:

a) The project results in new investment in Gozo. (Such investment can include expansion of existing investments);

b) The project is carried out by an undertaking which has been established for less than 3 years. (This shall be calculated from the date of registration).

c) The project is supported by an independent energy audit conducted by a qualified energy auditor or engineer.

d) The project achieves at least 50% carbon emission savings (directly as a result of the investment) as evidenced by the carbon footprint report that must be submitted with the application.

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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