Malta

Country Profile

15/08/2020

Prepared for SCP/RAC by Circular Economy Portugal www.switchmed.eu

1. Introduction ........................................................................................................................... 3

2. Policy and regulatory framework ........................................................................................ 4

3. Market demand and investment climate ............................................................................. 8

4. Socio-cultural context ............................................................................................................ 9

5. Opportunities & Obstacles ................................................................................................. 10

6. Appendix: bibliography ...................................................................................................... 17

1. Introduction
Malta is a history-rich small archipelago in the Mediterranean Sea, one of the smallest countries
in Europe and in the top ten of the most densely populated countries in the world. The idea of the
circular economy is particularly relevant to Malta, given its geographical circumstances, high
import dependency, and lack of natural resources. However, Malta is still at the doorstep of
circularity.

Malta benefits from a growing economy, especially in the tourism sector. Nonetheless, the Islands’
small size, the lack of skills in eco-innovation, the low availability of funding for eco-innovators
impede Malta’s capacity to move faster. As a consequence, public sector support plays an
important role. After the publication of its Green Economy Strategy and Action Plan1, the
government continues to develop a number of initiatives, from education and research policy to
business support, to stimulate the transition towards a circular economy.

Malta ranked 15th in the

2017 Eco-Innovation Index,
with an overall index of 86
relative to the EU-average of
100. However, in 2018, it
moved back to a lower index
(<85). 2The country faces a
number of challenges that
eco-innovation can best
address: lack of space and
Figure 1 Malta's drivers of Green Growth. Source: MSDEC local resources (it imports
most of its materials, food
and embodied fresh water), energy dependency, water scarcity, waste management are the most
urgent ones. So far, the country has heavily invested in the energy sector, as well as in
transportation and water. However, although waste management is a national priority, uptake of
circular processes and resource efficiency measures has been low.

1
Greening our economy – Achieving a sustainable future (MSDEC, 2016)
https://meae.gov.mt/en/public_consultations/msdec/documents/green%20economy/consultation%20document%20-%20green%20economy.pdf
2 EU Eco-Innovation Index 2918. Available at: https://ec.europa.eu/environment/ecoap/sites/ecoap_stayconnected/files/eio_brief_eu_eco-

innovation_index_2018.pdf
 Quick Facts3

Population 0.5 millions

GDP per capita 31,058.4 USD

10-year average annual GDP growth 4.8 %

Ecological footprint 3.0 gha/capita

Renewable energy consumption share 5.4%

Unemployment rate 4.6%

Global Gender Gap Index0-1 (gender parity) 0.7

The country benefits from a high employment rate, driven by the service sector. A strong tourism
industry means that Malta becomes more export-oriented and less capital-intensive. Full
implementation of transportation and energy reforms should further decrease the islands
dependency on imported fossil fuels, and growing energy efficiency is expected to leave more
money for investment.

2. Policy and regulatory framework

The Maltese government has been very active in recent years to tackle environmental issues and
support the development of the green economy.
In its report ‘Economic Vision for Malta 2014 – 2020’ the Malta Chamber of Commerce Enterprise
and Industry also indicates that economic activity in Malta, in relation to the Green economy by
the private sector, has remained limited – restricted to the collection of waste, importation and
installation of Renewable Energy Sources and energy/resource efficiency technologies, and
limited manufacturing of energy efficiency technologies such as windows and apertures among
others.
The National Strategy for the Environment (NSE) is a strategic governance document that sets a
policy framework for the preparation of plans, policies and programmes related to the protection
and sustainable management of the environment. The NSE and its Vision for 2050 were published
for public consultation in April 2019.
Malta’s Sustainable Development Vision for 2050 is the Government’s main guiding principle for
developing policies, and when planning and implementing projects. It is structured and designed
on three normative governance principles: enhancing economic growth, safeguarding our
environment, and social cohesion and wellbeing. Prior to 2016, a number of initiatives had been

3Source: The Global Competitiveness Report 2019. World Economic Forum.

http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
launched, including the National Electromobility Action Plan in 2013; the Waste Management
plan 2014-2020, the National Research and Innovation Strategy 2020 and the funding programme
for R&D FUSION in 2014; and in 2015, the Green Economy Strategy and Action Plan4, and the
Second Water Catchment Management Plan . In 2020 the Government launched also the National
Strategy for Research and Innovation in Energy and Water (2021-2030) which focuses on ensuring
efficient solutions in energy and water as well as desalination and water treatment processes, while
also identifying renewable solutions. This strategy, developed together with the Malta Council for
Science and Technology, includes a specific scheme to help identify the projects that will benefit
from the €500,000 that have been allocated for the first year.

In the energy sector, several measures to improve energy efficiency and the intake of renewable
energy source were implemented, including door-to-door energy audits and photovoltaic panel
schemes. Some incentives are summarized below.

- The Investment Aid for Energy Efficiency Projects (run by Malta Enterprise and ERA)
aims to support undertakings in carrying out investments leading to improved energy-
efficiency. The assistance is intended to facilitate investments in technological solutions
that provide higher energy efficiency and contribute directly towards a reduction in the
energy requirements of the beneficiaries. The aid awarded through this measure shall be in
the form of a cash grant or a tax credit (which can be utilised against tax payable by the
beneficiary) or a combination of both.
- Promotion of Energy Audits in Small and Medium Sized Enterprises5.
- Competitive bidding process for solar PV installations of more than 1MW - under this
scheme, support is provided for solar farms through a competitive process in which
investors need to bid for support. The allocation of capacity is based on the bid price,
provided that the submission is administratively compliant.
- Grants are provided for the purchase of electricity vehicles, scrappage schemes and
conversion to Autogas.
- Every new or used electric vehicle is exempt from paying registration tax, and from annual
licence fees for the first five years. This includes motorcycles, electric mopeds, hydrogen
fuel cell electric vehicles and plug-in hybrids amongst others. This exemption is applicable
to individuals, companies, NGOs, local councils and Governmental departments.
- With respect to the tax incentives for businesses to implement energy-efficient practices,
Malta Enterprise Corporation together with the Energy and Water Agency (EWA) shall be
providing assistance to facilitate investments in technological solutions that provide higher
energy efficiency and direct contribution towards a reduction in the energy requirements
of the beneficiaries. This aid shall be in a form of tax credit, that is, as a tax incentive.

Since the adoption in 2015 of Malta’s Green Economy Strategy and Action Plan, some progress
has been made regarding energy efficiency, the production of renewable energy and the
containment of greenhouse gas (GHG) emissions, but it remains limited and may not enable the

4Greening our economy – Achieving a sustainable future. Available at:

https://meae.gov.mt/en/public_consultations/msdec/documents/green%20economy/consultation%20document%20-%20green%20economy.pdf

5Further information at https://www.energywateragency.gov.mt/schemes/ and https://energy.gov.mt/en/tenders/Pages/INVITATION-TO-BID-(ITB)-FOR-

FINANCIAL-SUPPORT-FOR-ELECTRICITY-FROM-RENEWABLE-SOURCES-OF-ENERGY--WITH-CAPACITY-BETWEEN-400kW.aspx
country to reach its targets regarding GHG emissions, R&D expenditures, renewable energy
provision and energy efficiency6. Parallel efforts to solve waste and water issues still need to
deliver. On a related note, Malta has published in 2019 its 2030 National Energy and Climate
Plan7.

The energy sector remains the most developed for eco-innovation activities. Malta is one of the
EU countries were SMEs are the most likely to implement energy efficiency actions, and to plan
additional actions to use predominantly renewable energy. The sector seems to have received a
strong boost since 2015 fed by many government’s initiatives (old vehicle scrappages schemes,
upgrading of street-lighting and subsidized deployment of solar-PV installations). The effects can
be seen at the country level, and Malta is one of the leading countries in the EU for reduction of
primary energy consumption: it has decreased by 22.5% between 2006 and 2016, mostly as a result
of strong investments from the public sector in power generation and distribution efficiency. 8

Sustainable product policy in Malta has found a fertile ground in the tourism sector. Since 2002,
the Malta Tourism Authority operates the ECO certification for hotels and farmhouses, which aims
at improving tourism accommodations’ sustainable performance, especially regarding energy
efficiency, reducing water consumption, waste management and green procurement. It also aims
at raising awareness among employees and guests. The latest figures show that 16% of hotel
accommodation in Malta are now covered by the scheme, with successful results in terms of
resource efficiency and awareness, while providing a competitive advantage for its participants
(MTA 2010).

In December 2016, the recently established Authority for Transport in Malta published its first
National Transport Strategy (with time horizon of 2050) and the National Transport Master plan
2025. One of the intentions of the strategy is to encourage the use of sustainable modes of
transportation and work towards reduced car ownership levels (Transport Malta 2016). With high
road traffic and private car ownership, the government has already supported initiatives to reduce
congestion and inefficient use of private transportation, such as car-sharing platforms.

Regarding waste management, currently the Ministry for Environment, Climate Change and
Planning is reviewing the Waste Management Plan (A Resource Management Approach 2014-
2020) as it prepares for a new plan for the period of 2021-2030. The Waste Management Plan 9
proposes initiatives in order to achieve the targets set by the EU Waste Framework
Directive.Targets such as recycling 50% of paper, plastics, metal and glass waste from households
by 2020; only 35% (based on 2002 levels) of biodegradable municipal waste will be allowed to
landfill by 2020; and recover 70% of Construction and Demolition (C&D) waste by 2020. The
review will establish the changes in waste generation over the past 10 years containing the sources
of waste generated and the characterisations of the waste streams. The new Resource Recovery

6Eco-Innovation in Malta. EIO Country Profile (2016-2017). Available at:

https://ec.europa.eu/environment/ecoap/sites/ecoap_stayconnected/files/field/field-country-files/malta_eio_country_profile_2016-2017_1.pdf
7Available at: https://drive.google.com/file/d/11nQdlwQghCXKjrKI-G9V6xSIvOfDZz0q/view
8Eco-Innovation in Malta. EIO Country Profile (2016-2017). Available at:
https://ec.europa.eu/environment/ecoap/sites/ecoap_stayconnected/files/field/field-country-files/malta_eio_country_profile_2016-2017_1.pdf

9 https://environment.gov.mt/en/decc/Documents/environment/waste/wasteManagementPlan2014-2020.pdf
and Recycling Agency10 (RRRA) has been established to foster the transition towards a circular
economy. For example, the Agency is set to facilitate the implementation of a new Beverage
Container Refund Scheme (BCRS), for plastics, metal and glass beverages whereby people can
deposit beverage containers in return of a monetary refund. ECOHIVE is the largest investment in
waste management in Malta, which will revolutionise the way we approach and manage waste and
drive the country towards a circular economy. This development of new waste infrastructure and
facilities will improve waste management as well as the recovery of materials, thereby reducing
landfilling of waste. Additional assessments are being carried out for boosting the Extended
Producer Responsibility mechanism within the upcoming Revised Waste Management Plan for
2021-2030. Moreover, additional administrative reforms will enhance the cooperation between
various authorities at national as well as at local level, avoiding administrative bottlenecks and
improve waste management.

Also of note is the environmental permitting system that is carried out by the Environment and
Resources Authority (ERA) as the regulator under the Environment Protection Act (Cap. 549).
ERA makes use of a structured environmental permitting regime, which takes into consideration
the nature of the activity and its potential environmental impact, the scale of the activity in terms
of size, the requirement of EU and Maltese legislation for issue of permits and current
environmental concerns in Malta (State of the Environment Report 2018)11.

Other legal instruments, strategies and policies aimed at fostering circular economy in Malta and
stimulating green businesses are:

- Environment Protection Act (Act No. XX, 2001)12.

- National Environment Policy (2012).
- The adoption and implementation of the Construction and Demolition Waste Strategy, one
of the main aims of which is to promote markets for secondary raw materials in the
construction industry.
- The adoption and implementation of the Single Use Plastic Strategy which will effectively
tackle plastic pollution by means of reducing the consumption of SUPs items and
increasing the quality and quantity of plastic waste collected for recycling.
- The Second Green Public Procurement Action Plan 13will aim to facilitate and integrate
circular procurement through the GPP criteria for buildings, computers, textiles and
furniture, all of which have a reinforced focus on circularity.
- Awareness campaigns and citizens’ engagement are constantly promoted in order to
empower and engage the public aimed at sensitising the general public on the importance

10
Further info: https://rrra.gov.mt/

11
State of the Environment Report 2018, available at https://era.org.mt/wp-content/uploads/2019/05/Chapter9_PolicyResponses-30Nov2018.pdf
12 Environment Protection Act available at http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12446&l=1

13Green public procurement was first introduced through a national action plan in 2011. The second National action plan defines 9 new initiatives: greening
other procurement instruments, greening award criteria, pooling of advisory experts, training and constant refresher courses, incentivising local councils
through award schemes, greening EU funding, introducing Green finance, post procurement auditing and enhancing the role of the GPP coordinator. Circular
public procurement is not mentioned, but the second National Action Plan is meant to contribute “towards moving in a greener and more circular economy”
(Ministry for Finance 2017).
 of waste separation, on whom the successful operation of these new facilities will
ultimately depend.
- Sustainable development education strategy including: a National Education for
Sustainable Development Strategy (NESDS14) to ensure that education for sustainable
development provision reaches every sector of the local population (formal, non-formal
and informally); trainings which focus on the development of transversal skills through
which participants understand the role of the green economy in today’s economic and
employment architecture; and training programmes through the University of Malta and/or
MCAST aimed at developing the new skill requirements that are required to further the
green economy with particular reference to the sustainable development and the
development (& inspection) of green buildings.
- National Water Management Plan including initiatives such as the development of a
national water conservation campaign, incentive schemes for operators in the agricultural
sector to better manage their water use, the new water programme, the rehabilitation of
water catchment areas in valleys and the introduction of new practices such as managed
aquifer recharge schemes
- Commercial green loans through the guarantee of the Malta Development Bank.
- Other measures include increased penalties for illegal dumping and an excise duty is
charged on construction material, including metals, glass, tiles and concrete.

3. Market demand and investment climate

Although the government has made effort to align the Maltese economy with circular principles,
this remains still an underdeveloped sector. It recently attracted some publicity, with the European
Parliament holding an event on circular economy in Malta in 2017, and with the involvement of
the University of Malta in the R2Pi Horizon 2020 project. In addition to public incentives, changes
in the population’s attitude towards the environment and waste in particular may provide a push
for the circular economy in coming years. There is already a strong support for the protection of
the Islands heritage, including their natural riches, out of consideration for future generations, but
also because of the economic weigh of the tourism sector. Habits are starting to change too: latest
figures for collection of recyclable wastes show a continuous increase in collected amounts over
2015-2017 (Vella 2018). There appears to be a very strong support for circular economy initiatives
and environmental protection actions in Malta among citizens (2017 Special Eurobarometer).

The main improvement in Malta’s eco-innovation activities concerns environmental management:

in 2016, 645 companies were registered under ISO 14001, or 1,290 registrations per million
inhabitants. This is by far the greatest per capita number in the EU, showing a strong concentration
compared to other countries. It has also grown substantially since 2015, when only 41
organisations were ISO 14001 certified, well below the EU average. This can be seen as an
indication of rising environmental awareness from companies, as well as of improved management
capability.

14 Available at: https://meae.gov.mt/en/Public_Consultations/MEDE/Pages/Consultations/2016-MEDE-NSESD.aspx

As of September 2018, Malta had six licences and six products registered in the EU Ecolabel
scheme, out of 2167 licences and 71 707 products in the EU. All licenses and products in Malta
are "Tourist accommodation services". Recent investments in saving energy and recycling within
the private sector have been very high and are above EU-28 averages.
The Eurobarometer survey conducted with Maltese SMEs reveals that few of them identified a
need for specific environmental expertise, but they were also the least likely in Europe to mention
the need for demonstration of new
technologies and processes to improve
resource efficiency, pointing to a lack of
interest for eco-innovation.
When asked about their need for business
development support, only a small minority of
Maltese SMEs primarily demanded support for
the development and marketing of green
products or services, or for the adoption of
more resource efficient technologies and
processes. Very few saw the development of
cross-sectoral reuse of materials and by-
products, or of clearer rules on the use of
secondary raw materials, as being most helpful
for the development of their business. The lack
of demand for developing core circular
processes, product and services, and the
limited intention to develop them in the near
term demonstrate that this is not yet a priority
for Maltese SMEs.

With respect to green jobs in Malta, a 2015

study indicates that, though modest in size, the
green economy is picking up and is employing more workers among the various industries - with
such jobs residing in mature segments that cover a wide array of activities including manufacturing
and the provision of public services such as wastewater and solid waste management, with a
smaller portion encompassing newer segments that respond to energy-related challenges.

4. Socio-cultural context
On the back of strong and sustained economic growth, the Maltese labour market performs well.
The unemployment rate dropped to 4.0 % in 2017 and employment growth remained robust. The
employment rate (for people aged 20-64) has risen above the EU average and reached 74.4 % in
Q2-2018. Malta had the highest increase in female employment in the last decade, but the
employment gap is the largest in the EU.
Nevertheless, labour and skill shortages can hamper growth and its inclusiveness. The share of
employers reporting labour shortages has continued to increase across sectors. Although closing,
 the gender employment gap is still one of the largest in the EU, as shown in the indicators of the
Social Scoreboard supporting the European Pillar of Social Rights (Figure 2). The participation of
people with disabilities in the labour market also remains low. The high proportion of population
with low skills and school dropout rates affecting children hamper efforts to reach sustainable and
inclusive growth.
In 2017, wage growth was contained by rising labour supply resulting from inflows of foreign
workers and higher participation of women in the labour market.

In terms of regional gaps, disparities exist

Figure 2 Malta Social Scoreboard - European Pillar of Social
between the island of Malta and the island of
Rights
Gozo. The small island of Gozo, which is
currently dependent on the sea transport link
with the island of Malta, is less accessible, has scarce access to services and has fewer job
opportunities than mainland Malta.
Headline indicators on poverty and social exclusion show that Malta is benefiting from a
flourishing economic climate. In 2017, the share of the population at risk of poverty and social
exclusion (AROPE) declined from 20.1 % in 2008 to 19.2 %. However, the decline was not
uniform for all groups. The large inflow of irregular migrants (e.g. from North Africa) may create
integration challenges, reflected in their high risk of poverty and social exclusion particularly in a
context of increased housing costs.

5. Opportunities & Obstacles

Based on all the collected information, the main opportunities and obstacles identified for Malta’s circular
economy businesses can be summarized in the following table:
Opportunities Obstacles

General economic context and

investment climate Malta has weathered the euro-zone Malta is a service-based and open trade
crisis better than most EU member economy characterized by diseconomies
states due to a low debt-to-GDP ratio of scale, largely depending on the import
and financially sound banking sector. It all raw materials, whilst exporting
maintains one of the lowest production.
unemployment rates in Europe, and
growth has fully recovered since the Natural resources are very limited and
2009 recession. In 2014 through 2016, those resources present are already
Malta led the euro zone in growth, valued and maximised to the full,
expanding more than 4.5% per year. through multiple re-use (e.g. water
resources). The main barriers to eco
Maltese SMEs have invested in innovation in Malta remain the lack of
resource efficiency, but it led to higher space and local resources, energy
production costs in the short term, dependency, water scarcity, and waste
creating a need for external funds. management. Also research and
Various initiatives have been put in development remains a challenge.
 place to improve access to finance for
SMEs, including setting up the Malta
Development Bank. Well-trained
workers, low labor costs, and EU
membership attract foreign
investment.

General political context The Maltese government has been very Malta’s strategy on Circular Economy
active in recent years to tackle focuses mainly on waste management,
environmental issues and support the and it is implemented by the Resource
development of the green economy. Recovery and Recycling Agency,
working together with the Ministry of
At an international level policies have Environment, Sustainable Development
to drafted in such a manner as to make and Climate Change.
it more conducive for such businesses
to thrive rather than hinder their efforts
in trying to become greener and more
sustainable, for example the
continuous conflict between State Aid
and the support for investment in
Renewable and Energy Efficient
Technologies must be settled to the
benefit of a greener society.

Policy and regulatory (both There are a number of innovative Economic activity in Malta, in relation to
national and regional/local) models that have been launched the Green economy has remained limited
successfully internationally, that could restricted to the collection of waste,
be considered locally. When it comes importation and installation of
to such business models it is clearly not Renewable Energy Sources and
a case of ‘onesize fits all’ and energy/resource efficiency technologies,
consequently due diligence ought to be and limited manufacturing of energy
carried out to identify the schemes that efficiency technologies such as windows
are more appropriate for the local and apertures among others.
economy.
Improving policies and regulations to
better support green and circular
businesses would first and foremost
support the business to improve its
standard as an enterprise in a
comprehensive manner. Furthermore
driving businesses towards a green
agenda will help the State attain EU
and International targets and projects a
higher green vision for itself within the
other MS and in international fora.

Subsidies and fiscal benefits Demand for funding opportunities and Access to finance represent a strong
financial advice has grown in the past barrier to eco-innovation in businesses.
years. To compensate the lack of Maltese SMEs have invested in resource
private source of funds, public efficiency, but for at least a quarter of
authorities have supported the Maltese them, it led to higher production costs in
 economy for many years, through the short term, creating a need for
European and national funds. For external funds. However, Maltese SMEs
example, two third of all R&D are having trouble accessing to finance,
expenses came from public funds in as banks reduced lending to businesses.
2016 (Times of Malta, 2017). A
diversification of financing
instruments, including access to
venture capital, is now a new focus of
the Malta Development Bank, to
support innovation in services and new
business models, that will be necessary
to shift to a circular economy.

Public procurement The Second Green Public Procurement One of the continuous challenges in
Action Plan provides a series of targets implementing GPP in Malta has been
and measures that sees a level of striking a balance in setting an ambitious
ambition that has never before yet realistic agenda for GPP whilst
prevailed in Malta. Implementing the operating in a market characterised by
Plan and achieving its targets will SMEs. The first National Action Plan has
require the support and commitment of shown that SMEs tend to be presented
economic operators as well as those with a greater challenge in being GPP
responsible for public procurement. compliant due to the costs of introducing
the necessary changes to achieve an
The Directorate of Environment and environmental improvement,
Climate Change has been committed to particularly when the tenders are utilising
support SMEs in dissemination of the cheapest technically compliant offer
information and training sessions, and instead of the most economically
will continue to do so during the advantageous tender. Most of the
second National Action Plan, in order economic operators also lack the
to further facilitate its implementation. resources to allocate specific personnel
to address GPP.
Perhaps the greatest difficulty the GPP
office came across during the
implementation of the GPP NAP has
been the need to keep procurement
officials and bidders abreast with GPP
updates. As a result, GPP was being
increasingly perceived as an added
burden to the already complex public
procurement system.

General knowledge and Several initiatives were promoted by The development of circular processes
awareness about CE the Maltese government to raise and uptake of eco-innovations also
awareness around circular economy depend on the capacity of businesses to
topics. For example the “Don’t Waste cooperate and build capability.
Waste” campaign by the Ministry for
the Environment, and Climate Change There is considered to be a lack of
and Planning was a nationawide interest on the part of SMEs in this
educational and awareness raising domain, and especially regarding
campaign on waste prevention and cooperation to develop processes for the
management. The campaign also reuse of waste and by-products.
included an online game to engage the
 public in understanding more about
good waste management practices and
the initiatives that are ongoing in Malta
and Gozo. Tips and ideas were also
provided on how to reduce the waste
going to landfill, upcycling, recycling
and saving what can be reused from
going to waste. Also the Malta’s
Science & Arts Festival - for research
and innovation for cities, focused on
plastic by increasing awareness about
the effects of plastic waste on the
planet through an interactive
exhibition. The Ministry for the
Environment, Climate Change and
Planning created an official Facebook
page to raise awareness and to use the
platform to announce initiatives such
as litter clean ups taking place in
association with different stakeholders
and volunteers.

The upcoming Waste Management

Plan for the Maltese Islands 2021-2030
will include various awareness-raising
activities on the circular economy in
relation to waste prevention and reuse.

Consumer demand (linked to Businesses that are green are more

previous point) highly regarded, therefore helping with
increasing their competitive edge as
well as enhancing their brand image.
Furthermore, employees working for a
green business are more likely to be
content and less likely to leave as they
feel they are part of a work community
that cares, this in turn leads to a
reduced turnover. Although initial
costs to go green might be high, in the
long run there are more benefits to be
reaped and it is therefore why such
policies and regulations should help
with encouraging businesses with
taking the first step.

Public-private partnerships Malta welcomes opportunities and

collaborations between public and
private entities to embrace the theme of
circularity and aims to carry out a
number of long-term projects in the
coming years.
 In relation to tourism, public-private-
partnerships are seen as an opportunity
spread the costs and risks of large
green tourism investments.

In relation to energy management, an

example of public-private partnership
is the joint venture company, Malta
Developers Green Energy Limited, by
the Malta Developers Association and
the Water Services Corporation
(WSC), that is to build a number of
solar farms on the roofs of all the
WSC’s reservoirs.

Support programs or platforms The University of Malta and MCAST

for green and circular are now offering programmes relating
businesses to sustainable development. The
University of Malta offers Masters in
Education for Sustainable
Development, B.Sc. (Hons) in Earth
Systems, Master of Science in
Sustainable Environmental Resources
Management, Master in
Environmental Management and
Planning, Master of Science in
Sustainable Infrastructure, Masters in
Sustainable Energy. On the other hand,
MCAST offers courses on
Environmental Sustainability,
Environment Conservation,
Environment and Water Technology,
Environmental Engineering, Energy
Management, Power Generation, Solar
Thermal Installations Power
Generation and Renewables among
others.

In Malta there are a few incubators and

acceleration programs, promoted by
organizations like
Take Off (by University of Malta) and
Faster Capital.

Professional training and The Maltese government has been Innovation is hindered by the size of the
education on CE / Skilled strongly investing in education over research and innovation system, but even
labour and the promotion of the past five years, as showed by the more so by a mismatch between skills
green jobs in the labour market National Education for Sustainable needed and current labour force. The
Development Strategy (NESDS). The low-skilled workforce is still partly
continuous emphasis on the local excluded from the labour market, while
labour market and thus training and re- companies rely on immigration to offset
skilling is imperative due to Malta’s emerging skill gaps and shortage of
 heavy reliance on the labour market as applicants for the high number of job
a motor for economic performance. opening. Digital skills and soft skills
(communication, problem-solving, etc.)
are especially lacking, hampering the
Malta’s continued economic growth capacity for many workers to take part in
depends on upgrading and deepening innovative professional activities.
the education, knowledge and skills of
Maltese workers. Human capital is a
key factor in the adoption of new
technologies, the introduction of
innovative practices and in securing
growth in multi-factor productivity
arising from improvements in
managerial practices, organisational
change and inventions per se.
Education and training must establish
stronger links with Malta’s labour
market given that quality intelligence
on labour supply and demand
dynamics are critical in ensuring
outcomes that address the needs of
current and future labour markets. The
role of skills matching and the
continous upgrading of the local skills
pool with the requirements of the
market will be a determing factor for
Malta to capitalise on the advantages
that the green economy tansformation
will bring about.

It is important to train also public and

private decision makers in the
challenges of sustainable development.
Training decision makers (national and
local elected representatives, business
leaders and unions among others) is
deemed highly opportune to trigger
real changes in behaviours and
individual and collective choices.

Specific economic sectors Malta’s 2030 National Energy and Malta's high population density, limited
Climate Plan was published in land space and lack of economies of scale
December 2019. This Plan follows the coupled with the effects of its climatic
scope of the Energy Union and covers conditions, proves challenging to
five dimensions: decarbonisation, transform this small island state into a
energy efficiency, energy security, competitive player within the waste
internal energy market, and research, sector.
innovation and competitiveness. The
Plan sets out Malta’s national Despite substantial progress in
objectives and contributions for 2030 diversifying the energy mix, dependency
in the respective dimensions and on oil products remains high.
contains a description of the foreseen
 policies and measures that need to be Maltese SMEs are unlikely to participate
implemented in order to reach the set- in industrial symbiosis, or to design or
out objectives. plan to design products that are easier to
maintain, repair or reuse.

Other socio-cultural factors Thinking green should become part of

(incl. gender issues) how business is done. For example,
every financial officer knowing their
savings and liabilities from going
green, workers in the construction
sector having the right skills to build
and install small-scale renewable
energy technologies, and to install the
full range of measures that will make
homes and businesses more energy
efficient in both new and existing
buildings. They will need to know how
to build new low carbon infrastructure
such as that required to make
renewable energy.

Other commercial or legal Illegal trapping and killing of protected

challenges species remain one of the main
challenges in Malta. A recent ruling from
the Court of Justice of the EU ruled that
the 2014 and 2015 measures authorising
the autumn trapping of finches did not
comply with the conditions laid down by
the Directive on the conservation of wild
birds.

Available technologies and Only few of Maltese SMEs identified a

infrastructure need for specific environmental
expertise, but they were also the least
likely in Europe to mention the need for
demonstration of new technologies and
processes to improve resource efficiency,
pointing to a lack of interest for eco-
innovation.
6. Appendix: bibliography
Below are some of the policies and strategies promoting in a way or another green and circular
economy and other relevant reports:

Document Year Source

RBMP Project Life 2020 https://www.rbmplife.org.mt/
https://mbb.org.mt/category/media/studies/page/2/
Malta Business Bureau /Publications 2020
Towards a Circular Economy. RRRA. 2020 https://rrra.gov.mt/wp-content/uploads/2020/01/email-version-fin..pdf
https://mk0energywaterabbylt.kinstacdn.com/wp-
National Strategy for Research and Innovation in Energy and Water (2021-
2020 content/uploads/2020/07/National-Strategy-for-Research-and-
2030)
Innovation-in-Energy-and-Water-2021-2030-EWA-web.pdf
Ecopreneur European sustainable Business Federation Final Report https://circulareconomy.europa.eu/platform/sites/default/files/ecopr
2019 eneur-circular-economy-update-report-2019.pdf
Circular Economy Update Overview of Circular economy in Europe
Ecopreneur European sustainable Business Federation Final Report https://circulareconomy.europa.eu/platform/sites/default/files/ecopr
2019 eneur-circular-economy-update-report-2019.pdf
Circular Economy Update Overview of Circular economy in Europe
https://ec.europa.eu/info/sites/info/files/file_import/2019-
Country Report – Malta. EU 2019 european-semester-country-report-malta_en.pdf
https://ec.europa.eu/environment/eir/pdf/report_mt_en.pdf
The EU Environmental Implementation Review 2019 – Malta 2019
http://www3.weforum.org/docs/WEF_TheGlobalCompetitiveness
The Global Competitiveness Report 2019. World Economic Forum 2019 Report2019.pdf
https://meae.gov.mt/en/Public_Consultations/MSDEC/Documents/
Second Green Public Procurement Action Plan. MSDEC 2018 Green%20Public%20Procurement%20National%20Action%20Pla
n.pdf
https://www.energywateragency.gov.mt/news/water-management-
The Water Management Framework in Malta 2018 framework-malta/
“Don’t waste waste” campaign / water 2018 https://www.maltachamber.org.mt/en/don-t-waste-waste

http://www.maltaenterprise.com/support/investment-aid-energy-
Investment Aid for Energy Efficiency Projects 2018
efficiency-projects
https://ec.europa.eu/environment/ecoap/sites/ecoap_stayconnected/
Eco-innovation in Malta. EIO Country Profile. 2017 files/field/field-country-files/malta_eio_country_profile_2016-
2017_1.pdf
https://meae.gov.mt/en/public_consultations/msdec/documents/gre
Greening our economy – Achieving a sustainable future. MSDEC 2016 en%20economy/consultation%20document%20-
%20green%20economy.pdf

Nurturing a Sustainable Society - A National Strategy for Education for https://meae.gov.mt/en/Public_Consultations/MEDE/Pages/Consul

2016 tations/2016-MEDE-NSESD.aspx
Sustainable Development for Malta. MEE and MSDEC
https://environment.gov.mt/en/decc/Documents/environment/waste
Waste management plan for the Maltese island. MSDEC 2014 /wasteManagementPlan2014-2020.pdf
Malta’s national biodiversity strategy and action plan 2012 -2020 2012 https://www.cbd.int/doc/world/mt/mt-nbsap-01-en.pdf
Disclaimer This publication was produced with the financial support of the European Union.
Its contents are the sole responsibility of SCP/RAC and do not necessarily reflect
the views of the European Union.

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