Smart and Sustainable Investment Grant Scheme

Malta Enterprise has relaunched the Smart and Sustainable Investment Grant Scheme, (hereinafter, the ‘Scheme’), intended to support investments leading to more sustainable processes, thereby optimising the use of resources. Investments in plant, machinery, equipment and technologies are required to lead to a quantifiable reduction in C02 emissions of at least 10%.

Applications may be submitted until 30 November 2026.

Project eligibility and aid intensity

The Scheme is open to eligible small, medium-sized and large undertakings engaged in an economic activity, which are planning an investment project of at least €10,000, having the aim to achieve sustainability, improved environmental performance or digitisation leading to growth potential.

Projects that are deemed to constitute the replacement of equipment, plant or machinery that has reached (or almost reached) its useable life would be ineligible. Projects should include an investment plan confirming that they will be implemented within 12 months from the date when funding is awarded.

The aid intensity under the Scheme is 50% of the eligible expenditure, up to a maximum grant of €100,000 per project. Moreover, a tax credit of up to €40,000 per project may be awarded as an additional 10% or 20% of eligible costs, if the project meets any one or two of the following criteria, respectively:

a. The project results in new investment (including expansion of existing investments) in Gozo;
b. The project is carried out by an undertaking which has been established for less than three years;
c. The project is supported by an independent energy audit conducted by a qualified energy auditor or engineer; and
d. The project achieves at least 50% carbon emission savings as evidenced by the carbon footprint report that must be submitted with the application.

The aid capping is subject to an overall capping for de minimis assistance of €300,000 over a rolling period of three consecutive fiscal years for a single undertaking.

Eligible costs

Upon application, applicants are required to provide full details and costs to be incurred, including a technical analysis by a competent person on the environmental and energy savings, quantifying the gains to be achieved through the project. The application should also include a report on the current carbon footprint, and the forecast reduction in CO² emissions following the completion of the project.

The Scheme may support costs, which have been incurred after project approval, to achieve one or more of the following investment outcomes:

a. Waste minimisation – reducing materials use per unit of production;
b. Sustainable materials – reducing impact of product on global environment;
c. Energy efficiency – reducing energy use per unit of production;
d. Water efficiency – reducing water use per unit of production; and
e. Sustainable digitalisation – adopting digital solutions to enhance environmental performance.

Eligible investments may also include specialised technical services and procurement of technologies that enable the undertaking to measure parameters linked to its carbon footprint and to identify actions intended to reduce such carbon footprint. Aid for such costs must be incorporated within an eligible sustainability project and shall be capped at 20% of the total amount approved. Any technical service must be covered by a contractual arrangement with unrelated parties, of which only the first 12 months shall be eligible.

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.