Eco-innovationinMalta

EIOCountryProfile

2014-2015

Eco-InnovationObservatory

TheEco-InnovationObservatoryfunctionsasaplatformforthestructuredcollectionandanalysis

ofanextensiverangeofeco-innovationinformation,gatheredfromacrosstheEuropeanUnionandkeyeconomic regionsaround theglobe,providingamuch-needed integrated informationsourceoneco-innovationforcompaniesandinnovationserviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.

TheObservatoryapproacheseco-innovationasapersuasivephenomenonpresentinalleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:

“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.

Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.

Eco-InnovationObservatoryCountryProfile2014-2015:Malta

Authors:LauraBaroniandRobWilliams(Trinomics)

Coordinatoroftheworkpackage:TechnopolisGroupBelgium

Acknowledgments

We are very grateful for the information provided byMargaret Cassar from theMinistry forSustainable Development, Environment and Climate Change and Marco Abela from MaltaEnterprise.

AnotetoReaders

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.

This brief is available for download fromhttps://ec.europa.eu/environment/ecoap/malta

Tableofcontents

Summary..……………………………………………………………………………………………………………………1

Introduction...................................................................................................................2

1 |Eco-innovationperformance........................................................................3

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends..........6

3 |Barriersanddriverstocirculareconomyandeco-innovationinMalta.........9

4 |Policylandscape:towardscirculareconomyinMalta..................................12

ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinMalta....18

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Summary

Maltaranks25th intheEUonthe2015Eco-innovationScoreboardwithacomposite indexof64relativetotheEU-averageindexof100.ThecountryslightlyexceedstheEU-28averageintermsofresource efficiency outcomes (with an index of 104), but lags behind in eco-innovation inputs,activitiesandoutputsandsocio-economicoutcomes.

The development of eco-innovation is hindered by a mix of natural constraints and structuralchallenges,includingthecountry’ssmallsizeandinsularity,limitedpotentialtodeveloprenewableenergy sources,aweakhuman resourcesbase in scienceand technologies, limitedcapacityandreadinessforresearchandinnovationonbehalfoflocalfirms,andrelativelylowlevelsofinvestmentinR&D.

Nevertheless, several recent policy initiatives – most notably, a new National Research andInnovationStrategyto2020–reflecttheGovernment’scommitmenttoimproveMalta’sinnovationenvironment and R&D potential. Policy initiatives specifically related to eco-innovation and thecircular economy includeaGreenEconomyStrategyandActionPlan, aNational ElectromobilityActionPlan,andanewWasteManagementPlan.Areasthathavebenefittedfromeco-innovationsolutionsinthepasttwoyearsincludewatermanagement(inparticular,effortstoaddresswaterscarcity)andenergyefficiency.

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Introduction

MaltaisthesmalleststateintheEU,aswellasthemostdenselypopulated,withmorethan1,200inhabitants/km2.Thecountry’smicro sizeand insularitypresentanumberofuniquechallenges.Eco-innovationmayhelpaddressthesechallenges,butitspotentialisalsoconstrainedbythem.

Maltaisparticularlyatriskfromtheconsequencesofclimatechange,inparticularsea-levelriseandextremeweatherevents.Indeed,Maltaisexpectedtosuffermoderateimpactsfromclimatechangemainlyrelatedtodrought,deteriorationoffreshwaterqualityandavailability,anincreasedriskoffloods, soil andcoastalerosion, changes in sea levelandbiodiversity lossanddegradation (EEA,2011).

The islands’ natural water resources are entirely rain-fed and the annual naturally renewablefreshwateravailabilitystandsataround120m3/person,wellbelowthe500m3/personwhichtheUNdefinesasthethresholdofabsolutewaterscarcity(MSDEC,2015).Over-abstractionfromtheislands’aquifersystemsisleadingtotheintrusionofsalinewatersinaquifers,whiletheleachingofnitratesfromagriculturefurthercompromisesgroundwaterquality(MSDEC,2015).Overhalfofthedrinking water produced by Malta’s major supplier is sourced from desalinated sea water, anenergy-intensiveprocesswhichaccountsfor3%ofthecountry’selectricityconsumption(Laurietal.,2015).

Malta is heavily dependent on imported fossil fuels. Measures aimed at boosting domesticproductionofrenewableenergyhavesucceededinraisingtheshareofrenewableenergyto4.7%in 2014, but more efforts are needed to reach the country’s 2020 target of 10% (EuropeanCommission,2016).Atthesametime,Malta’smicrolandmassandhighpopulationdensityrendertheimplementationoflargerenewableenergyinfrastructuredifficult(Laurietal.,2015).

Maltareliesheavilyonlandfillingforitswastemanagement,althoughsomeprogresshasbeenmadein recent years in termsof upgradingwaste infrastructure and setting upwaste separation andrecycling systems. Nevertheless, Malta's high population density, limited land space, climaticconditionsand lackof economiesof scale continue to constrain the country’s ability tomanagewasteeffectively(MSDEC,2015).

Anumberofrecentpolicyinitiativesstrivetoaddressthesechallengesandreflectthegovernment’scommitmenttofostereco-innovationandpromotethe‘greeneconomy’.Theyincludetheadoptionof aGreenEconomyStrategyandActionPlan, aSecondWaterCatchmentManagementPlan, aNationalElectromobilityActionPlan,andanewWasteManagementPlan.

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1 |Eco-innovationperformance

Theanalysis inthissection isbasedontheEU-28Eco-innovationscoreboard(Eco-IS) fortheyear2015. ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-ISdemonstratestheeco-innovationperformanceofacountrycomparedwiththeEUaverageandwiththeEUtopperformers.Eco-ISisbasedon16indicators,aggregatedintofivecomponents:eco-innovationinputs,activitiesandoutputs,environmentalandsocio-economicoutcomes.

Malta’scompositeindexis64relativetotheEU-averageindexof100.Thecountry’srankingamongtheEU-28fellfrom18thplacein2013to25thin2015.ThehighestscoreswereobtainedbyDenmarkandFinland(167and140,respectively).

MaltaslightlyexceedstheEU-28averageintermsofresourceefficiencyoutcomes(withanindexof104),butlagsbehindineco-innovationinputs,activitiesandoutputsandsocio-economicoutcomes.

Comparedto2013indices,Malta’sperformance(relativetotheEUaverage)remainedroughlythesameintermsofeco-innovationinputs,improvedregardingeco-innovationactivitiesandoutputs,anddecreasedforresourceefficiencyoutcomes.1

Figure1EU28Eco-innovationscoreboard2015,compositeindex

Source:EIO,2016

1Regardingsocio-economicoutcomes,acomparisontothecountry’sperformancein2013cannotbemadesincethecurrentscorecardusesadifferentdatabasefortwooftheindicatorsusedtocomputethisindex.

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Figure2Componentsoftheeco-innovationcompositeindexforMalta,2015

Source:EIO,2016

Eco-innovationinputs

Maltaremainsoneoftheweakestperformersinthisarea–fourthfrombottom–withanindexof25(relativetoanEUaverageof100).

In2014,totalgovernmentenvironmentalandenergyR&Dappropriationsandoutlaysamountedto0.002% of GDP,well below the EU average of 0.037%. R&D personnel and researchers in 2014accountedfor0.87%oftotalemployment(about30%belowtheEUaverageof1.26%).Nogreenearlystageinvestmentweremadeinthecountryin2012-2015,accordingtodatacollatedbytheCleantechGroup.

Eco-innovationactivities

Malta’sscoreregardingeco-innovationactivitiesrosefrom54in2013to72in2015(relativetoanEUaverageof100),butremainedamongthelowestintheEU-28.ThetopperformersinthisareaweretheCzechRepublicandPortugal,withanindexof181and167,respectively.

In2008,thepercentageoffirmshavingimplementedinnovationsaimedatareductionofmaterialinput per unit of outputwas 0.09 (lower than the EUaverageof 0.13%),while 10.11%of firmsimplementedinnovationsaimedatenergysavings(lowerthantheEUaverageof14.50%).Notethattheindicatorshavenotbeenupdatedcomparedtoearlierversionsofthescoreboard.

ThenumberofISO14001certifiedorganisationsinMaltain2014was30,correspondingto70.52registeredorganisationpermillioninhabitants.Thisrepresentsanincreasesince2012,butisthesecondlowestvalueonthisindicatoramongtheEU-28.

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Eco-innovationoutputs

MaltascoresbelowtheEUaverageregardingeco-innovationoutputs.Thecountry’sindexincreasedfrom43 in2013 to55 in2015, ranking22nd in theEU-28.Thehighest indiceswereobtainedbyLuxembourg(205)andFinland(190).

Only 1patent related to eco-innovationwas registered inMalta in 2012, corresponding to2.39patents per million inhabitants (well below the EU average of 18.59 patents related to eco-innovationpermillioninhabitants).Maltaalsoperformspoorlyintermsofeco-innovationrelatedpublications.Withonly2.35publicationspermillioninhabitants2in2014,MaltarankslowestintheEU-28onthisindicator.

Finally,ineco-innovationrelatedmediacoverage(measuredasthenumberofhitsinallelectronicmedia covered by "Meltwater News" with key-word "Eco-innovation" translated in all EU-28languages)Malta scores above the EU average. There were 54 hits counted in 2015 based onMeltwater’sscreeningof130electronicmediasources,bringingMalta’sindexto135(relativetoanEU-averageindexof100).Thesenumbersshould,however,beinterpretedwithsomecautiongiventhesmallsizeofthepopulation.

Resourceefficiencyoutcomes

The resource efficiency outcome index is based on combined national statistics on domesticmaterialproductivity,domesticwaterproductivity,inlandenergyproductivity,andGHGemissionsintensity. Malta exceeds the EU-28 average in the resource efficiency outcomes index by 4%.However, thisrepresentsadecreasesince2013,whenMalta’sscorewas113(relativetoanEU-average indexof100).Maltanowranks10th (togetherwith Ireland) in theEU,whereas its2013ranking was 4th. The best performing countries on this index are Luxembourg and the UnitedKingdom,withrespectivescoresof131and126.

Malta’s material productivity (GDP/Domestic Material Consumption) was 2.25 EUR/kg in 2013,higher than the EU average of 1.93 but lower thanMalta’smaterial productivity in 2011 (3.16EUR/kg).

Waterproductivity,measuredasGDPgeneratedbydomesticwaterconsumption,was7.1EUR/m3in1996-2005,equalto55%oftheEUaverage.(Theindicatorhasnotbeenupdatedinthecurrentscoreboard.)Malta’swaterfootprintoverthesameperiodwasapproximately866m3percapita.

Malta’senergyproductivityreached10.67EUR/toe3 in2013,25%abovetheEU-28average.Thisrepresentsanincreasesince2011,whenthecountry’senergyproductivitywas8.30EUR/toe.

Finally,GHGemissionsintensity(measuredastheamountofGHGemissionsgeneratedperunitofGDP)wasat0.29kgofCO2equivalent/EURin2013,lowerthantheEUaverageforthesameyear(0.35kgCO2e/EUR).Withanindexof119(relativetoanEU-averageindexof100),Maltaranks6thintheEUonthisindicator.

2Thisvalueisbelowthe5%quantileusedasalowerthreshold(4.27)andconsequentlyreplacedwiththelatterinthecalculationoftheEUaverage.

3Thisvalueisabovethe95%quantileusedasahigherthreshold(10.46)andconsequentlyreplacedwiththelatterinthecalculationoftheEUaverage.

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Socio-economicoutcomes

Malta’sindexforsocio-economicoutcomesis46,relativetoanEUindexof100.ThisisthesecondlowestscoreintheEU-28,higheronlythanthatofCyprus(31).However,onecaveatincomparingthesevaluesisthatMalta’sindexisbasedononlytwoindicators,sincedataonemploymentineco-industriesisnotavailablefor2014.

Exportsofproductsfromeco-industriesamountedtoEUR2millionin2014,equivalentto0.10%ofallexports.4

ThesizeofMalta’seco-industrywasrelativelysmallin2014,withitsturnoverrepresenting1.63%oftotalturnoveracrossallcompanies.ThisisbelowtheEUaverageof2.19%.Thecurrentscorecardusesadifferentdatabaseforthisindicatorthantheoneusedinearlierversions,whichprecludescomparisonswith2013scores.

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends

Malta’sGreenEconomyStrategyandActionPlanadoptedinDecember2015takesstockofprogressmadeandremainingdeficienciesinanumberofareasrelatedtoeco-innovationandthecirculareconomy.Theseareoutlinedbelow.

Malta’s green economy remainsmodest in size,with about 2,100 green jobs recorded in 2015(MSDEC,2015).5Themajorityof these jobsare inthewatersupply industryandthesolidwastemanagement sector, with a smaller portion in newer energy-related sectors, such as the solarphotovoltaic,micro-windandbiofuelindustries(MSDEC,2015).Itisestimatedthatgreenjobsmaygrowby19%overthenextthreeyears.Tofurtherstimulatethegreeneconomyinthecomingyears,thestrategyproposesdevelopingstrongerlinksbetweenindustryandacademiaandincorporatingsustainabledevelopmentinallvocationaltraining.

Thestrategynotes some improvementsconcerningwastemanagement,particularly in termsofupgrading waste infrastructure, the setting up of waste separation and recycling systems andeducationprogrammes.Nevertheless,Maltacontinuestoheavilyrelyonlandfillingandthelevelofmaterialrecoveryislow.TheGovernmentisseekingtominimisewastegenerationandalignMalta’swastemanagementsystemwiththecirculareconomyapproach(MSDEC,2015).Tothisend,anewWasteManagementPlan2014-2020wasissuedinJanuary2014(MSDEC,2014).

Someprogresshasbeenmadetowardsgreeningtheenergysector,butmoreeffortsareneededtoreach the country’s targets regarding renewable energy and energy efficiency (EuropeanCommission, 2016). The energy sector accounted for almost 90% of national Greenhouse Gasemissionsin2013(MSDEC,2015).Endingtheenergynetwork’sisolationandreducingthealmost

4Thisvalueisbelowthe5%quantileusedasalowerthreshold(0.12%)andconsequentlyreplacedwiththelatterinthecalculationoftheEUaverage.

5AccordingtoasurveycommissionedbytheMinistryforSustainableDevelopment,EnvironmentandClimateChangecarriedoutbytheNationalStatisticsOfficein2015.

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completerelianceonoil importshasbeenapriorityfortheMaltesegovernment inrecentyears(EuropeanCommission,2016).AnelectricityinterconnectionwithItalywasactivatedinApril2015and considerable investments are being made in other upgrades of the energy infrastructure(EuropeanCommission,2016;MSDEC,2015).ProjectsareunderwaytoswitchMalta’selectricitygenerationfacilitiesfromLiquidFuelOilstonaturalgasthroughtheconstructionofanewgas-firedpowerplantandLiquefiedNaturalGas(LNG)infrastructure(MSDEC,2015).

Malta'sshareofrenewableenergysourcesintotalconsumptionhasrecentlyincreased,reaching4.7% in 2014, in linewith the indicative trajectory towards the 2020 target. However, ongoingeffortsneedtobesustainedinthecomingyearsgiventhesteeptrajectorytowards2020(EuropeanCommission,2016).Moreover,recentanalysisbytheMinistryforEnergysuggeststhatthedomesticpotentialforrenewableenergyislimited.6TheuseofcooperationmechanismswithotherMemberStates(suchasimporting‘greenelectricity’throughtheinterconnector)couldbeconsideredtohelpthecountryachieveitstargets(EuropeanCommission,2016).

Thetransportsystemremainslargelydependentonimportedfossilfuel.Theshareofrenewableenergyintransportreached4.7%in2014,butisstilllessthanhalfwaytowardsreachingthe2020targetof10%(EuropeanCommission,2016).Toaddresstheseissues,aNationalElectro-mobilityActionPlanwasadoptedin2013(seeSection4).

Althoughprogresshasbeenmadeinimprovingenergyefficiency,additionaleffortsareneededtoreach the country’s 2020 target (European Commission, 2016). Primary energy intensity hasdecreasedsince2005atafasterpacethanfortheEUasawhole,andisnowlowerthantheEUaverage,butthisispartlyduetotheabsenceofveryenergy-intensive,largeindustrialactivitiesinMalta(EuropeanCommission,2016).Ontheotherhand,finalenergyconsumptioninthetransportsectorandenergyconsumptionpercapitaincreasedonaverageintheperiod2005-2013(EuropeanCommission,2016).

Water stress is a long-standing issue in Malta, with an annual natural renewable freshwateravailability of around 120 m3/person, well below the UN threshold of absolute water scarcity(MSDEC,2015).Over-abstractionofgroundwatersourcesresultsintheintrusionofseawaterintheisland’s aquifers, while growing concentrations of nitrates from the downward movement offertilizers and animal waste add to the deterioration of groundwater quality. Malta is heavilydependentonthedesalinationofwaterforitsdrinkingwatersupply,whichconsumes3%ofthetotalelectricitygenerated(Laurietal.,2015).AnupdatedWaterCatchmentManagementPlanfortheperiod2015-2021wasadoptedin2015(SEWCU,2015).ItsetsoutaprogrammeofmeasurestooptimisethemanagementanduseofwaterresourcesinMaltaandGozo(furtheroutlinedinSection4). Innovative approaches to improve water availability are being explored and tested throughprojects such as MARSOL – Demonstrating Managed Aquifer Recharge as a Solution to WaterScarcityandDrought,anFP7projectinvestigatingmanagedaquiferrechargetechnologies,andAlterAqua,apublic-privateinitiativeaimedatmobilisingNon-ConventionalWaterResources(rainwaterharvesting,stormwatermanagementandgreywaterreusesystems).

6MinistryforEnergyandHealth(2015)PreliminarytechnicalandeconomicassessmentofMalta’seffectiverenewableenergypotentialpost2020,citedinEuropeanCommission(2016).

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Demonstratingenergyefficiencyandtheuseofelectricmobilityinportsandportareas(PORT-PVEV)ThePORT-PVEVproject,fundedthroughtheEUOperationalProgrammeItaly-Malta2007-2013,demonstratedhowportsandportareas (andtheoperationstherein)canreducetheircarbonemissions.Duringatwelve-monthdemonstrationperiod,theprojectdemonstrated,testedandevaluated:

- ThedeploymentofelectricvehiclesinCatania,GelaandVallettaharbourareastopartlysubstituteconventionalvehiclesusedtoserviceportoperations.

- Productionofsolarenergytopartlypowerportadministrationbuildingsandstudytheextenttowhichrenewableenergyproducedonsitecancontributetowardsthebuilding’scarbonfootprintreduction.APhotovoltaicPlantwasinstalledontheroofoftheMaltaTransportCentrebuilding,coveringasurfaceareaof1,290m2andproducing189,000kWh/annum.Theplantoffsets10%ofthebuilding’senergyconsumption.

ElectricityfromthePVplantwasalsousedtopowertheelectricvehiclesdeployedinthearea.ItwasshownthatthePVplantoffersthepotentialforcarbon-neutraltransporton24fullelectricvehiclesonanannualbasis.

- InstallationandoperationofsolarcarchargingstationsinpubliccarparksinMalteseportareas to test and demonstrate the extent to which direct sun-to-car power can beproduced. Thiswas tested through the installation of 3 solar car charging stations inMalta.Thepilotprojectshowedthateachpointcanproduceupto1.5chargingeventsperdayusingsolarpower,resultinginover3000chargingeventsperyearusingsolelysolarpower.

- OffgridelectricbikechargingstationswereinstalledinCatania.

- TheprojectalsostudiedthefeasibilityofColdIroning,asystembywhichgrid-connectedinfrastructure isusedtopowerberthedvesselsusingelectricityfromthenationalgridinsteadoftheon-boardheavyfueloil.Thiswouldnotonlyimproveairqualitywithintheportareas,butalsovastlyreducenoisegeneratedbyshipengines.

Intotal,theprojectinterventionsresultedinover200tonnesofreducedCO2emissionsandthegenerationof260,735kWhofphotovoltaicenergyperyear.

Furtherinformation:

http://www.transport.gov.mt/transport-strategies/strategies-policies-actions/transport-strategies-in-development/port-pvev-project

Keywords:transport;electricvehicles;solarenergy; energy efficiency; renewableenergy.

Source:PORT-PVEVProjectPhotogallery,

http://www.portpvev.eu/index.php?id_cat=5&id_oggetto=14&id_sezione=51

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ManagedAquiferRechargeasaSolutiontoWaterScarcityandDrough

TheFP7projectMARSOL-DemonstratingManagedAquiferRechargeasaSolutiontoWaterScarcityandDrought(2013-2016)aims to stimulate the use ofreclaimed water and otheralternative sources in ManagedAquifer Recharge (MAR) systemsand to optimise Water ResourceManagementthroughthestorageof excess water or by influencinggradients.

Through interventions at 8demonstration sites (includingSouth Malta), MARSOL willdemonstrate the effectiveness,efficiency and sustainability ofdifferentMARtechnologiestoincreasetheavailabilityoffreshwaterunderconditionsofscarcity.Theprosandconsofeachtechnologywillbesystematicallyassessedandcomparedtoalternativesolutions.

Theprojectwill improve the stateof theartofMARapplications inorder toenable low-costefficientsolutionsthatwillcreatemarketopportunitiesforEuropeanindustryandSMEs.ItwillalsopromotetheadvantagesofMARbytailoredtraininganddisseminationprogrammesinorderto enable and accelerate market penetration. Ultimately, the project aims to deliver a keytechnologytofacethechallengeofrisingwaterscarcityinsouthernEurope,theMediterraneanandotherregionsoftheworld.ThreeMalteseorganisationsarepartoftheprojectconsortium.

Furtherinformation:

MARSOLProjectWebsite,http://www.marsol.eu/

Alternativemethodsofwaterharvesting

TheAlterAquaproject is amulti-stakeholder initiativeaimedatmobilisingNon-ConventionalWaterResources(NCWR)toincreasewateravailabilityinasustainable,cost-effectiveway.TheprojectbringstogethertheGlobalWaterPartnership-Mediterranean,theMinistryforEnergyandHealth,theMinistryforGozoandtheEco-GozoProject,aswellastheCoca-ColaFoundationandGeneralSoftDrinksCo.Ltd.

Activities include the installation and reinstatement of NCWR systems (rainwater harvesting,stormwatermanagementandgreywaterreusesystems)inselectedpublicbuildingsandareas,educational hands-on activities for students, teacher training seminars, capacity-buildingworkshops for local authorities, training for local technicians, aswell as awareness raisingonNCWRandsustainablewateruseamongthegeneralpublic.

ThefirstphaseofthisprojectfocusedontheislandofGozo.Fourrainwaterharvestingsystemswereinstalledinschoolsandsixwerereinstated,agreywaterreusesystemwasinstalledatthe

SouthMaltaCoastalAquiferdemonstrationsiteSource:MARSOLProjectPoster,http://www.marsol.eu/files/poster_marsol-general.pdf

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GozoFootballStadium,andastormwatermanagementapplicationwasimplementedinRamlaValley, through the construction of rubblewalls. The retained stormwaterwill contribute toagriculturalirrigationandaquiferrecharge.

Furtherinformation:

Global Water Partnership Mediterranean, http://www.gwp.org/GWP-Mediterranean/gwp-in-action1/News-List-Page/Malta/

Ministry for Sustainable Development, the Environment and Climate Change (MSDEC), 2015,GreeningourEconomy–AchievingaSustainableFuture.

Keywords:watermanagement;ManagedAquiferRecharge;Non-ConventionalWaterResources

3 |Barriersanddriverstocirculareconomyandeco-innovationinMalta

EUlegislationandpublicauthorities’supportfor‘greening’theeconomyandstimulatinginnovationhave been the key drivers of eco-innovation inMalta. Since joining the EU in 2004,Malta hasinvestedheavilyinenvironmentalinfrastructureandregulation.TheEUhasalsobeenprovidinganimportantsourceoffundingintheenvironmentalfield,primarilythroughtheStructuralFunds.TheMaltesegovernmenthasput inplacea rangeof financial incentivesandpublic support towardssupporting innovation, such as R&D tax incentives, support for assessing the commercialisationpotentialofproposedResearch&Innovationprojects,grantsforR&Dandinnovationinscienceandtechnology,7 tax exemptions on income from patents, consultancy services for SMEs, and cashgrantstohelpSMEsdevelopprojectproposalsforEUfunding.

Atthesametime,Malta'ssizeandinsularityposeanumberofuniquechallenges.Theseincludetheinabilitytoreapthebenefitsofeconomiesofscaleduetothecountry’ssmallsize,adependenceonaverynarrowrangeofexports,high transport costs in itseconomic transactionswithmainlandEurope,andheavyrelianceonimportedfossilfuels(Laurietal.,2015).Malta’smicrolandmassandhigh population density render the implementation of large renewable energy sources (RES)infrastructuredifficult.Thesurroundingdeepseasdonotcompensateforthisdeficiency,giventhatatpresent there isnocommercially viableRESmarine technology that couldbeused inMalta’smarineconditions(Laurietal.,2015).Thecountry’swaterresourcesareunderseverestress,withdrinkablewater supplyheavilydependentondesalination (whichconsumes3%of thecountry’stotal electricity generation). Furthermore, despite significant investments made in wastemanagement infrastructure,Malta’s peculiar characteristics continue to constrain the country’sabilitytomanagewasteeffectively(Laurietal.,2015).

Inadditionto(andpartlybecauseof)thesenaturalconstraints,severalstructuralchallengesposeabarrier to innovation.A recentassessmentby theEuropeanCommissionconcludes thatthe lowefficiencyofgovernmentadministrationandofthejudicialsystem,aninefficienttransportsystem,andskillsmismatcheslowerMalta’sattractivenesstoforeigninvestorsandhampertheabilityof

7MaltaCouncilforScienceandTechnology(MCST),FUSIONProgramme,http://www.mcst.gov.mt/R_A_I/Fusion.aspx

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businessestoinvest.Aweakhumanresourcesbaseinscienceandtechnologiesandthelackofacriticalmass in specific research areas hinders the capacity to innovate (European Commission,2016). Stronger linkages between the academic and the private sector for effective knowledgetransferareneeded,aswellasfurtherinvestmentinR&D(EuropeanCommission,2016).

Theprivatesectorischaracterisedbyaveryhighproportionofmicro-enterprises,whoseinclinationtowardsR&Dandinnovationinvestmentisoftenhamperedbyissuesofeconomiesofscale,limitedcash flows and vulnerability in the face of riskier R&D and innovation activities (MCST, 2014).AccordingtotheMaltaCouncilforScienceandTechnology,themajorityoflocalfirmshavelimitedcapacityandreadinessforresearchandinnovation,andprefertofocusonimprovementsinexistingproductsor services rather thandevelopingnewones,while targeting the local rather than theinternationalmarket(MCST,2014).

Progresshasbeenmade in termsofR&D intensity,which increased from0.55%GDP in2007to0.85%ofGDPin2014,butthelevelremainsrelativelylowcomparedtootherMemberStatesandfarawayfromMalta’snationaltargetof2%(EuropeanCommission,2016).ArecentstudysuggeststhatthereissomescopetoreducethefragmentationandoverlapofR&Dtaxinstruments.8

Furtherchallengesincludethelackofresearchandinnovationinvestmentstodevelopmarketableproductsandservices,andtheneedtoimproveproductmarketregulation(EuropeanCommission,2016).Thedeclininginnovationperformanceoftheprivatesectorisreflected,forexample,intherelatively low level of patent applications and sales share of new innovations. Reforms of theintellectualpropertysystemarecurrentlyunderway(EuropeanCommission,2016).

Establishingadequateframeworkconditionsforfirmsremainsakeychallenge,asshownbyMalta’sperformanceintheWorldBank’s‘easeofdoingbusiness’indicator,whereMaltaranksamongthelowestperformersintheEU(EuropeanCommission,2016).

8CPB (2014) A Study on R&D Tax Incentives, Taxation Papers, Working Paper No. 52, cited in European Commission, 2016.

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4 |Policylandscape:towardscirculareconomyinMalta

The Green Economy Strategy and Action Plan was adopted by the Ministry for SustainableDevelopment, Environment andClimateChange inDecember2015. Thedocument setsout theGovernment’svisionofthegreeneconomyinMaltaarticulatedaroundsixelements:

Ø Sustainablegrowth:Thestrategyseekstofacilitateopportunitiesforgreengrowth,includingthepromotionofthelow-carbonandenvironmentalgoodsandservicessector.

Ø Efficient and effective use of natural resources:Measures promoting energy efficiency andoptimised use of material inputs are envisaged, which will in turn create new marketopportunitiesforresource-efficientproductsandprocesses.

Ø Exploitingcomparativeadvantage:Maltesebusinessesaretotakeadvantageoftheemergingmarketsforgreenergoodsandservices.

Ø Increasingtheeconomy’sresilience:Moreefficientuseofresourcesshouldincreaseresiliencebyloweringcosts,releasingscarceresources,providingavenuesfordiversification,enhancingflexibility,andpreparingtheeconomyfortheeffectsofclimatechangeandenvironmentalrisks.

Ø Providingqualityjobs,underpinnedbygreeneconomyconcepts.

Ø Makingnaturalandecologicalcapitalaccessibletoallsocialsectors.

The strategy proposes a number of specific actions related to the circular economy and eco-innovation.Asregardswastepolicy,itforeseesprioritisingeffortstomanagewasteinlinewiththewastehierarchyand to reduce thecarbon impactofwaste,developinga comprehensiveWastePreventionProgramme,andworkingwithbusinesses topromotewastereductionandre-useaspart of a broader resource efficiency programme. These provisions complement the WasteManagementPlan2014-2020,whichsetsthefollowingnationaltargets,inlinewithEUlegislation:

Ø A50%targetfortherecyclingofpaper,plastics,metalandglasswastefromhouseholdsby2020;

Ø Alimitof35%(basedon2002levels)ofbiodegradablemunicipalwasteallowedtolandfillby2020;

Ø A70%recoverytargetforConstructionandDemolitionwasteby2020;Ø Anobligationtocollect65%oftheaverageweightofelectricalandelectronicequipment

placedonthenationalmarketby2021;Ø Recyclingandre-usetargetsofupto85%by2018forelectricalandelectronicequipment

placedonthenationalmarket.

Proposedactionsrelatedtowatermanagementincludetheintroductionofvoluntarywaterauditsin companies, coupled with a grant scheme to support investments targeting water efficiency(MSDEC, 2015). In addition, the Second Water Catchment Management Plan adopted in 2015foreseesanumberof innovativemeasuresaimedatpromotingefficientuseofwater resources,increasing water availability, and developing new technologies for water treatment andmanagement(SEWCU,2015).

To promote green jobs, the Strategy proposes the development of a National Education forSustainableDevelopmentStrategyby theendof2016,mainstreaming sustainability indifferent

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trainingprogrammesby2017,andthecreationofspecialisedtrainingprogrammesfocusedontheskillsrequiredbythegreeneconomyby2018(MSDEC,2015).

ThedocumentalsoreaffirmstheGovernment’scommitmenttoenhancingthecompetitivenessofSMEsvia thegreeneconomy.Thiswillentail,amongstotheractivities,awareness-raisingamongSMEsoftheopportunitiesgeneratedbythegreeneconomy,promotingenergyaudits leadingtoresourceefficiency,andsupportingSMEsthroughtheintroductionoftaxcredits,grants,trainingandothersimilarschemes.

In termsof financial instruments, theStrategy foresees thedevelopmentof investmentsupportschemesaimedatincentivisingtheadoptionofbestofbreed‘clean’and‘eco-technology’solutions,aswellasother‘greenfinancing’mechanisms(MSDEC2015).

A new energy efficiency measure launched in 2015 involves door-to-door energy audits forhouseholds,wherebypublicofficialsconductfreeonsiteenergyauditsbyappointmentandprovideenergy-savingadvicetoresidents(Laurietal.,2015).

Anewphotovoltaicpanelsschemewas introduced in2015.Residents installingsuchsystems intheirhomesareeligibleforagrantcoveringupto50%ofthecapitalcostcappedto2300Euros,or757EurosperkWp,andafeed-intariffof16centsfor6yearsandmarginalcostfortheremaininglifetimeofthesystem(Laurietal.,2015).

TopromotetheelectrificationoftheMaltesetransportsystem,aNationalElectromobilityActionPlan was adopted in 2013. The Government is also providing individualswho purchase electricvehicles with a grant of up to €4,000. The scheme has recently been extended to NGOs andbusinesses.

ANationalActionPlanonGreenPublicProcurementhasbeeninplacesince2011andareviewofitsimplementationisunderwaywithaviewtodevelopingasecondactionplanto2018(MSDEC,2015).

A number of instruments are in place to promote R&D and innovation projects. TheNationalResearch and Innovation Strategy 2020 adopted in February 2014 sets the goal of stimulatingknowledge-drivengrowth(MCST,2014).ThisstrategycomplementsMalta’sSmartSpecialisationStrategy,whichprioritisesinnovationinseventhematicareas:tourism,maritimeservices,aviationandaerospace,health,resource-efficientbuildings,highvalue-addedmanufacturingwithafocusonprocessesanddesign,andaquaculture.AnumberofR&Dtaxincentivesareinplace,targetingindustrialprojectsaimedatdevelopinginnovativeproductsandsolutions(EuropeanCommission,2016).IntellectualPropertyRightsincentivesintheformoftaxexemptionsonincomefrompatentsarealsoavailable,andthe2016budgetintroducesataxcredittofacilitateresearchandinnovationby enterprises (EuropeanCommission, 2016). A number of new initiatives to improve access tofinanceby leveragingprivatesector investments instart-upsandSMEswere introduced in2015(EuropeanCommission,2016).

Malta’s Council for Science and Technology manages a funding programme for research andinnovation(FUSION)launchedin2014.Theprogramme’smainobjectivesareto:raisethelevelandprofile of locally funded research; ingrain research and innovation at the heart of theMalteseeconomy;spurknowledge-drivenandvalue-addedgrowth;andsustainimprovementsinthequalityof life.9 Two typesof supportareavailable:CommercialisationVouchersassisting inventorsandresearchers to assess the commercial and market potential of their ideas; and a Technology

9MCST,FUSIONProgramme,http://www.mcst.gov.mt/R_A_I/Fusion.aspx

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Development Programme which funds the actual development of research and innovationproposalswiththepossibilityofdevelopingaprototype.

Malta’sNationalElectromobilityActionPlanLaunched in November 2013, Malta’sElectromobility Action Plan sets out anumber of projects and measuresaimed at promoting the uptake ofelectric vehicles and improving thesustainability of Malta’s transportsector.

The Plan proposes 22 demonstrationprojects to be rolled out by 2020,including,forexample:

- UltraPodProject:aimstoconnectspecificlocationsbymeansofdriverlesselectricpods.

- PublicTransportElectricRoutes:amainroutewouldbechosenfortheuseofahighcapacityelectricbus.

- SolarCarSheltersProject:severalsolarcarparksandcarcharginginfrastructurewouldbesetuptodemonstratecarbonneutraltransport.

- ElectricWaterTaxis:willdemonstratetheuseoftheelectricbatteryinwatertaxisandferries.

- EVEssentialsProject:willdemonstratetheuseofBatteryElectricVehicles(BEV)forEssentialServicessuchasthePolice,CivilProtectionandPostal/ParcelDeliveryServices.

- CreationofanElectromobilityResearchHub,inpartnershipwithindustryandresearchstakeholders,topromoteparticipationinR&Dprojects(mainlyfundedbyHorizon2020).Researchwillfocusonnewvehicleconcepts,batteryandnewcarstructuresandmaterials.

ThePlan’ssecondpillarcomprisesanumberoffinancialincentivesdesignedtostimulatemarketpenetrationofelectricvehicles.TheyincludegrantsforthepurchaseofnewBEV,grantsfornewBatteryElectricMotorCycles,MopedsandTricycles(cappedat100,onafirst-come,first-servedbasis),additionalgrantsforHouseholdsandBusinessesthatinvestinphotovoltaicinfrastructureandpurchaseBEVs,andzero-taxfortheregistrationofnewandusedBEVs.

In addition, starting in 2015, 25% of all Government-purchased vehicles must be BEVs. TheGovernmentwillincreasethepercentageinanincrementalmannerandinaccordancewiththeavailabilityofBEVsonthemarket.

ThePlanalsoseekstostimulatepublic-privatepartnershipsandinternationalcooperationwithleadingautomotivecompaniesandrelatedservices,aswellasfurtherR&Dandappliedresearchrelatedtoelectromobility.

Furtherinformation:

Ministry for Transport and Infrastructure, 2013, National Electromobility Action Plan,https://electromobility.gov.mt/en/Policies/Documents/The%20Malta%20National%20Electromobility%20Action%20Plan.pdf

Keywords:transport;electricvehicles;electromobility.

Source: Ministry for Transport and Infrastructure, 2013,NationalElectromobilityActionPlan

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Malta’s Second Water Catchment Management Plan: innovative solutions forsustainablewatermanagementThe sustainable management of waterresources is one of the key challengesfacing Malta today. The Second WaterCatchmentManagementPlanadopted in2015 contains aprogrammeofmeasuresdesigned to address this challenge, andshowshoweco-innovationandthecirculareconomyapproach can contribute to theprotection and sustainable use of waterresources. A number of measures andinstruments aim to promote resourceefficiency,forexample:

Ø DevelopmentofaWaterDemandMaprepresentingthespatialvariationofwaterdemandintermsofqualityandquantity,andestablishmentofbenchmarksforefficientwateruse;

Ø Supportmechanismsforwaterconsumptionauditsinhouseholds;Ø Financialsupportschemesfortheuptakeofefficientwatertechnologybytheagricultural

sector;Ø Supportschemesforthedevelopmentofrainwaterrunoffharvestingfacilities;Ø Establishment of specific power benchmarks for desalination plants and upgrading

programmesforthephasedachievementofthesebenchmarks;Ø DevelopmentofalongtermNationalWaterConservationCampaign;Ø EstablishmentofavoluntaryEco-Labellingschemeforwater-usefixturesandappliances;Ø Establishingandintroducinggoodpracticewaterusethresholdsforallpublicbuildings

andstructures.

Otheractionsforeseenbytheplanseektopromoteinnovativeapproachesforincreasingwateravailabilityand/orimprovingwatertreatment.Theyinclude,forexample:Ø Developmentofdemonstrationprojectstoshowcasetheapplicationofinnovative

technologiesinthelocalwatersector,suchastheuseofNewWaterresources,ManagedAquiferRecharge,innovativedesalinationtechnologies,efficientirrigationtechnology,andgreywaterrecycling;

Ø DevelopmentofManagedAquiferRechargeschemesforaquifermanagementpurposes;Ø Assessmentoftheuptakecapacityofmembranebasedwatertreatmenttechnologybythe

tourism and commercial sectors, and development of support schemes to attain thiscapacity;

Ø DevelopmentofDemonstrationsitesfortheapplicationofNewWaterResources;Ø Assessmentoftheexploitationpotentialofthesalineaquifersystemunderlyingthemean

sealevelaquifersystems;Introducingsupportmechanismstoincentiviseresearchactivitiesaimedatdevelopinglocalsolutionsforlow-cost,easilyinstallableandsafegrey-waterrecyclingsolutions;

Ø Reviewofexistinggroundwaterresourcemodelsanddevelopmentofanewnumericalmodeltoassesssustainablegroundwateryield;

Source: Malta Environment & Planning Authority,https://www.mepa.org.mt/outlook13-article1

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Ø Commissioningofthreenewpolishingplantstopolishsecondarytreatedeffluentbyultra-filtrationandmembraneprocesses.

Furtherinformation:

SustainableEnergyandWaterConservationUnit(SEWCU),EnvironmentandResourcesAuthority,2015,The2ndWaterCatchmentManagementPlanfortheMaltaWaterCatchmentDistrict2015–2021,http://sewcu.gov.mt/en/Pages/Water-Framework-Directive.aspx

Keywords:watermanagement;watertreatment;sustainablemanagement;resourceefficiency.

17

ReferencesEuropeanCommission,2016,CommissionStaffWorkingDocument:CountryReportMalta2016,SWD(2016)86final.

EuropeanEnvironmentAgency,2011,CountryProfileMalta,http://www.eea.europa.eu/soer/countries/mt/soertopic_view?topic=countryintroduction

Lauri,S.,Caan,T.F.,Azzopardi,J.P.andBezzina,A.,2015,EnergyEfficiencyTrendsandPoliciesinMalta,ODYSSEE-MURE2015,http://www.odyssee-mure.eu/publications/national-reports/energy-efficiency-malta.pdf

MaltaCouncilforScienceandTechnology(MCST),2014,NationalResearchandInnovationStrategy2020,http://www.mcst.gov.mt/Media/0f3855ec-025c-48b5-8ade-2171b8749276.pdf

MinistryforSustainableDevelopment,theEnvironmentandClimateChange(MSDEC),2015,GreeningourEconomy–AchievingaSustainableFuture,https://socialdialogue.gov.mt/en/Public_Consultations/MSDEC/Documents/Green%20Economy/Consultation%20Document%20-%20Green%20Economy.pdf

MinistryforSustainableDevelopment,theEnvironmentandClimateChange(MSDEC),2014,WasteManagementPlanfortheMalteseIslands.AResourceManagementApproach2014–2020.

MinistryforTransportandInfrastructure,2013,NationalElectromobilityActionPlan,https://electromobility.gov.mt/en/Policies/Documents/The%20Malta%20National%20Electromobility%20Action%20Plan.pdf

SustainableEnergyandWaterConservationUnit(SEWCU),EnvironmentandResourcesAuthority,2015,The2ndWaterCatchmentManagementPlanfortheMaltaWaterCatchmentDistrict2015–2021,http://sewcu.gov.mt/en/Pages/Water-Framework-Directive.aspx

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ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinMalta

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

addcellsifnecessary

Focusofpolicymeasure(tickifrelevant)

CircularEconomy

Genericfocusoneco-innovation

Resourceefficiencyimprovement

Energyefficiencyimprovement

Reductionofemissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

SUPP

LYSIDEFO

CUS

Equity/businesssupport

Publiclyco-fundedventurecapitalfunds

Publicguaranteefunds

LoanGuaranteesfacilitateaccesstofinancetoassistenterprisesintheacquisitionofcapitalassetsthatwillleadtoamoreeffectiveandefficientproductionandsupplyofservices.http://www.maltaenterprise.com/en/support/loan-guarantees

TheMicroGuaranteeSchemeprovideseligibleundertakingswithaguaranteeofupto80%onloansofupto€100,000whichmaybeusedtofinanceprojectsleadingtobusinessenhancement,growthanddevelopment.http://www.maltaenterprise.com/en/support/micro-guarantee-scheme

x

x

SupportforR&Dinpublicsectorandindustry

R&Dfunding

Variousfundingschemesareavailabletoassistinnovativeenterprisestoengagein research and development. These can take the form of grants or taxincentives.

x

X X X X X

TheFUSIONProgrammemanagedbyMalta’sCouncilforScienceandTechnologyprovidestwotypesofsupport:CommercialisationVouchersassistinginventorsandresearcherstoassessthecommercialandmarketpotentialoftheirideas;and a Technology Development Programme which funds the actualdevelopment of research and innovation proposals with the possibility ofdevelopingaprototype.

TheERDFInnovationActionsGrantScheme(Environment)–availableuntil2014-supportedinnovationinSmallandMedium-sizedEnterprisesthroughinvestmentsinenvironmentallyfriendlytechnologies.http://www.maltaenterprise.com/en/support/erdf-innovation-actions-grant-scheme-environment

X

X

19

TheERDFResearchandDevelopmentGrantScheme–availableuntil2014-aimedtoincreaseR&DactivityespeciallyinSmallandMedium-sizedEnterprisesbyassistingenterprisesincarryingoutIndustrialResearchandExperimentalDevelopmentactivitiesthatleadtothedevelopmentofneworsignificantlyimprovedproducts,processesorservices.http://www.maltaenterprise.com/en/support/erdf-research-and-development-grant-scheme

TheERDFSmallStart-upGrantScheme–availableuntil2014-supportedthegrowthofnewenterpriseshavinglessthan50employees.Theschemewasopentostart-upsthathadbeenoperatingforlessthan3yearsinthemanufacturing,InformationandCommunicationTechnology(ICT),Research&Development&Innovation(R&D&I),wastetreatment&environmentalsolutions,biotechnologyorthataresignificantlyinnovative.

http://www.maltaenterprise.com/en/support/erdf-small-start-grant-scheme

R&DFeasibilityStudies2014-2020:Theobjectiveofthisincentiveistosupportundertakings intending to undertake Industrial Research and ExperimentalDevelopmentprojectsincarryingoutR&DFeasibilityStudiesinpreparationforthese projects. http://www.maltaenterprise.com/en/support/preparatory-technical-feasibility-studies

Research and Development 2014 – 2020: This measure supports industrialresearch or experimental development carried out for the acquisition ofknowledge leading to thedevelopmentof innovativeproducts and solutions.http://www.maltaenterprise.com/en/support/industrial-research-and-experimental-development-scheme

X

X

X

X

x

Collaborativegrants

ThecollaborativeR&DGrantScheme–availableuntil2014-supportedMalteseenterprisesthatcarriedoutanindustrialresearchorexperimentaldevelopmentprojectincollaborationwithotherenterprises,leadingtothedevelopmentofinnovativeproducts,processesandservicesbasedonadvancedtechnologies.http://www.maltaenterprise.com/en/support/grants-cross-border-collaborative-research-and-developmentResearch and Development 2014 – 2020: This measure supports industrialresearch or experimental development carried out for the acquisition ofknowledge leading to thedevelopmentof innovativeproducts and solutions.http://www.maltaenterprise.com/en/support/industrial-research-and-experimental-development-scheme

X

R&Dinfrastructure

Intheendof2015,MaltaEnterprisecompletedtheapproximately€40MillionERDFcofoundeddevelopmentoftheLifeSciencesParkwhichincludesadigitalhub. The infrastructure is geared to ease the establishment of R&D basedenterprises.

x

20

Fiscalmeasures

TaxincentivesforR&Dandstart-ups

4.1.1.1.1 Micro Invest: The objective of this scheme is to encourageundertakings to invest in their business, innovate, expand, andimplementcompliancedirectivesortodeveloptheiroperations.Suchundertakingswhichmayincludeself-employedpersonsandwillbesupportedthroughataxcreditrepresentingapercentageof the eligible expenditure and wages of newly recruitedemployees.

http://www.maltaenterprise.com/en/support/microinvestInvestmentAidTaxCredits2014-2020:InvestmentAidTaxCreditsareintendedto sustain the regional industrial and economic development ofMalta. Thismeasure facilitates initial investments by encouraging the setting up of newestablishmentsandtheexpansionanddevelopmentofexistingbusinesses.

4.1.1.1.2 http://www.maltaenterprise.com/en/support/investment-aid-tax-credits

x

TaxincentivesforR&Dpersonnel

Qualifying Employment in Innovation and Creativity: This measure facilitatesemploymentofnon-residentsinroleswhicharecurrentlynotaddressedbythelocal labourmarket by temporarily easing the tax expenses incurred by suchpersonsthroughafiscalincentive.

http://www.maltaenterprise.com/en/support/qualifying-employment-innovation-and-creativity-personal-tax

x

Education,trainingandmobility

Tailoredtrainingcoursesforcompanies,entrepreneurs

TheUniversity ofMalta andMCASToffer programmes related to sustainabledevelopment/greeneconomy.ThroughtheTrainingAidFramework,financialassistanceisgiventocompaniesthat invest in the training of their workforce. This scheme is available forcompaniesintheprivatesectorandthesubsidyvariesaccordingtothetypeoftrainingandthesizeoftheenterprise.Trainingcanbein-houseorout-sourcedandcanbegiveninMaltaorabroadthroughdistancelearning.http://etc.gov.mt/etc-portal/Page/55/taf-employers.aspx

X

x

Advice/consultingforstartups,companies,entrepreneurs

TheBusinessAdvisorySchemeisdesignedtoprovidebusinessundertakingsoperatinginMaltawithadvisoryservicesthatsuittheirspecificcircumstances.

x

21

MaltaEnterpriseestablishedateamofbusinessconsultantsthathavethecapabilitiestoaddresstheneedsofundertakingsatdifferentstagesofdevelopment.Businessadvisoryservicesareprovidedwiththeaimtosupportundertakingstoidentifystrengthsandovercomeweaknessesinspecificareas.http://www.maltaenterprise.com/en/support/business-advisory-services

Placementschemesforstudents

SupportforR&Dworkersrecruitments

Networksandpartnerships

Competencecentres,clusters,science-technology

parks

Attheendof2015,MaltaEnterprisecompletedtheapproximately€40millionERDFcofoundeddevelopmentoftheLifeSciencesParkwhichincludesadigitalhub. The infrastructure is geared to ease the establishment of R&D basedenterprises.

x

Technologyplatformsandinnovationnetworks

Foresightandcommonvisionbuilding

Marketintelligenceandotherformsofinformation

sharing

DEMAN

DSIDE

FOCU

S

Regulationsandstandards

Regulations,targets,cap&tradeschemes

Thefollowingtargetsareinplace:

- Acommitmenttoachievea27%oftheprimaryenergyconsumptionor264,282toesavingstargetby2020;

- Totalfinalenergyconsumptionof0,547Mtoein2020;- RenewableEnergyTarget:10%offinalenergyconsumptionby2020;- Bio-fuelcontributioninthefuelmix:10%offinalenergyconsumption

offuelsby2020;- Reduction in Greenhouse Gas emissions under Effort Sharing

Decision:+5%over2005levelsby2020.

WasteManagementPlan2014:

- A 50% target for the recycling of paper, plastics, metal and glasswastefromhouseholdsby2020;

- A limit of 35% (based on 2002 levels) of biodegradablemunicipalwasteallowedtolandfillby2020;

x

x x x

22

- A 70% recovery target for Construction and Demolition waste by2020;

- Anobligationtocollect65%oftheaverageweightofelectricalandelectronicequipmentplacedonthenationalmarketby2021;

- Recyclingandre-usetargetsofupto85%by2018forelectricalandelectronicequipmentplacedonthenationalmarket.

Performancestandards,labeling,certification

EMASEuropeanEco-LabelSchemeMSAENISO14001:2004-EnvironmentalManagementSystemCertificationEco-certificationofhotels:http://www.mta.com.mt/eco-certification

X

Publicprocurement

“Green“publicprocurementofgoods

andservices

AGreenPublicProcurement(GPP)ActionPlanisinplacesince2011

X X

R&Dprocurement

Pre-commercialprocurement

TechnologyTransfer

Advisorysupportfortechnologyadopters

4.1.1.1.3 Business Advisory Services: The business advisory scheme isdesigned to provide business undertakings operating in Maltawithadvisoryservicesthatsuittheirspecificcircumstances.

http://www.maltaenterprise.com/en/support/business-advisory-services

Financialorfiscalsupportfortechnologyadopters

(e.g.grantsforpurchasingnewtechnology)

TheERDFEnergyGrantSchemesupportsenterprisesinvestinginenergysavingmeasuresandalternativeenergysources.http://www.maltaenterprise.com/en/support/erdf-energy-grant-scheme

MaltaEnterpriseCorporationadministersCertify,afiscalmeasureaimedatencouragingeligibleundertakingstocontinuouslyimprovethequalityoftheirproducts,servicesandprocessesthroughtheattainmentofindustryrecognisedcertificationsandQualityMarks.ThroughthisincentivetheCorporationmayapproveataxcredittoassistinrecoveringthecostsofachievingapprovedcertifications,qualitymarks,orlicences.Thefiscalsupport

x

X

X

23

thatwillbeavailablethroughthisincentiveshouldmakeiteasierforundertakingstocarryoutinvestmentsthatleadtosuperiorproducts,servicesofhighervalueandmoreefficientprocesses.http://www.maltaenterprise.com/en/support/certify-tax-credits

Supportofprivatedemand

Taxincentivesforconsumers(e.g.forpurchasing

environmentallyefficientproducts)

Taxreductionsforproductsandservices(e.g.VAT

reductions)

Demandsubsidies(e.g.eco-vouchers,consumer

subsidies)

Anewphotovoltaicpanelsschemewasintroducedin2015.Residentsinstallingsuchsystemsintheirhomesareeligibleforagrantcoveringupto50%ofthecapitalcostcappedto2300Euros,or757EurosperkWp,andafeed-intariffof16c5for6yearsandmarginalcostfortheremaininglifetimeofthesystem

Individualswhopurchaseelectricvehiclesareeligibleforagrantofupto€4,000.TheschemehasrecentlybeenextendedtoNGOsandbusinesses.

x

x

Awarenessraisingandinformationprovision

AbouttheEco-InnovationObservatory(EIO)

TheEco-InnovationObservatory(EIO)istheinitiativefinancedbytheEuropeanCommission’sDirectorate-GeneralfortheEnvironment.TheObservatoryisdevelopinganintegratedinformationsourceandaseriesofanalysesoneco-innovationtrendsandmarkets,targetingbusiness,innovationserviceproviders,policymakersaswellasresearchersandanalysts.

VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases.

www.eco-innovation.euec.europa.eu/environment/ecoap