Businesses are ethically bound to safeguard both the environment and society as a whole. Many businesses, though not enough, are embracing ESG and have committed to achieve climate-neutrality, with the EU striving to lead as the first continent to reach this milestone by 2050. To fulfill these goals, organisations are adopting various practices such as transitioning to paperless operations, embracing digitalisation and utilising renewable resources. The demand for sustainable transport is steadily increasing worldwide, reflecting a growing emphasis on maximising renewable resources.
Investing in sustainable transport is important for several reasons:
- Environmental Preservation
Sustainable transport significantly reduces greenhouse gas emissions, resulting in cleaner air and mitigating climate change. This not only boosts public health but also contributes positively to society as a whole.
- Enhanced Resilience
Sustainable transport systems are more resilient to disruptions caused by natural disasters, pandemics, or fuel shortages, ensuring the flow of essential services and economic activities even in challenging circumstances.
- Improved Energy Efficiency
Sustainable transport systems use renewable energy sources, reducing dependence on fossil fuels and bolstering energy security. This shift towards cleaner energy sources promotes sustainability and reduces environmental impact.
Investing in sustainable transport is not just an ethical obligation but also a strategic necessity for building a more resilient and prosperous future for all. It requires collective action and long-term dedication from key stakeholders such as governments, businesses, communities and individuals. By uniting these stakeholders, a more sustainable and robust system can be constructed that safeguards the planet and secures a better tomorrow for generations to come.
The Green Mobility Scheme was launched by Malta Enterprise on 27th March 2024 to incentivise businesses to transition to electric vehicles for transporting goods and passengers, contributing to the EU’s goal of being the first continent to achieve climate-neutrality by 2050. The scheme will remain open until 31st December 2026, with applications submitted by 30th September 2026, subject to availability of funds. The Scheme falls within the General Block Exemption Regulation (‘GBER’).
Businesses may receive support for the procurement, installation or upgrade of charging infrastructure. Aid is provided in the form of financial grants covering up to 100% of the interest paid in the first three years on loans supported by the Malta Development Bank or recognised financial institutions, and/or tax credits calculated as a percentage of eligible costs incurred. The aid intensity on eligible costs incurred ranges from 20% to 55%, depending on the size of the undertaking and area of the investment.
Furthermore, the scheme may also award tax credits for leasing commercial clean vehicles or commercial zero-emission vehicles for a period of at least 12 months up to 36 months, with the aid intensity varying from 30% to 60%, depending on the size of the undertaking and the vehicle to be leased.
For further details on these schemes or other relevant funding opportunities, ESG initiatives and training programs, feel free to reach out.
The information provided in this article is accurate as of the date of last update. Please note that the scheme/s discussed may be subject to changes or expiration within a year. Readers are encouraged to verify the status of the scheme with the relevant authorities or official websites for the most up-to-date information.
Last update: 7th October 2024
Mark Wirth
Partner
