The global shift towards sustainability has highlighted the importance of adhering to ESG obligations, not only for the purposes of solving the evident and imminent climate issues but to increase profitability and remain competitive in the market in which companies operate by taking advantage of the new business opportunities that this presents.
With sustainability on the global agenda and the harsh effects of climate change knocking at our door, there has been a global movement towards ensuring that more is done by organizations when it comes to environmental, social, and corporate governance, better known as “ESG”.
The Malta Enterprise, recognising the importance of placing ESG at the forefront of its priorities, hosted an ESG Strategy and Sustainability Seminar, attended by over 70 service providers. In line with Malta’s commitment to being carbon neutral by 2050, the possibility of benefitting from several schemes offered by Malta Enterprise to invest in reducing emissions and meeting ESG targets was explored, allowing for a comprehensive understanding of the benefits that companies may reap when committed to adhering to their ESG obligations imposed at national and EU level.
At present, there are a number of schemes offered by Malta Enterprise that target sustainable projects in line with ESG obligations, namely the Access to Finance (Soft Loan) instrument and the Smart and Sustainable Investment Grant.
Access to Finance (Soft Loan)
At present, the Malta Enterprise administers funding in the form of a soft loan granted to eligible undertakings to cover investments in projects aimed at addressing environmental issues such as water usage, water treatment, waste treatment, reduction, and reuse, and projects aimed at achieving a high level of sustainability. The loan may cover up to 75% of the costs related to the project and will be secured by a special hypothec covering at least 50% of the loan amount.
Smart and Sustainable Investment Grant
The Malta Enterprise also offers a grant to limited liability companies, partnerships, or self-employed persons that invest at least €10,000 in a project aimed at achieving sustainability, improved environmental performance or digitisation leading to growth potential. The grant is capped at €100,000 and covers 50% of eligible expenditure relating to the project. The applicant may also benefit from a tax credit increasing the covered eligible expenditure to 60% where one of the below criteria are met, or to 70% where any two of the below criteria are met:
- The project results in new investment (including expansion of existing investments) in Gozo;
- The project is carried out by an undertaking that has been established for less than three (3) years;
- The project is supported by an independent energy audit conducted by a qualified energy auditor or engineer.
For assistance regarding applications or information concerning the schemes offered by the Malta Enterprise do not hesitate to get in touch with Kirsten Debono Huskinson (email@example.com)