Eco-Innovation in Malta

Eco-innovation in Malta

EIO Country Profile 2013

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development. The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as: “Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”. To find out more, visit www.eco-innovation.eu

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

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Eco-Innovation Observatory

Country Profile 2013: Malta

Author: Dr. Georgios Papanagnou

Coordinator of the work package: Technopolis Group Belgium

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A note to Readers

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level.

This brief is available for downloaded from www.eco-innovation.eu/countries

Comments on this brief are welcomed and can be provided at www.eco-innovation.eu/malta

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Table&of&contents&

Summary ...... 5! 1! | Introduction...... 6! 2! | Eco-innovation performance ...... 7! 3! | Selected eco-innovation areas and new trends...... 10! 4! | Eco-innovation barriers and drivers in Malta...... 11! 5! | Eco-innovation policy landscape...... 12! 6! | Good practice examples ...... 13! References...... 17!

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Summary

Malta’s composite index in the 2013 Eco-Innovation Scoreboard stood at 67 compared to the EU-28 average (100). In 2013 Malta ranked in 17th place performing better than other new member states with small populations like Cyprus and Latvia but worse than Estonia.

In terms of drivers Malta enjoys a rich natural capital in renewable energies and biodiversity. The potential for solar energy in particular is substantial. Concerning innovation capacity, in dynamic terms Malta has been progressing in R&D investments and this is also reflected in its scientific and technological outputs. The Maltese Government has put in place a range of measures aimed at training enough researchers to meet its R&D targets and promoting employment in public research institutions. Authorities have also put in place a range of financial incentives and fiscal assistance towards supporting innovation – including eco-innovation.

Regarding barriers the prevalence of SMEs in the economic structure limits the potential for innovation. Inherently the Maltese market is small and growing a business by simply focusing on the local individual consumers and businesses is extremely difficult. Additionally, Malta is one of the least developed financial markets in the EU as far as eco-innovation is concerned.

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1 | Introduction

Due to its small island geography, Malta is particularly at risk from climate change, in particular sea- level rise, and extreme weather events. Indeed, Malta is expected to suffer moderate impacts from climate change mainly related to drought, deterioration of freshwater quality and availability, increased risk of floods, soil and coastal erosion, changes in sea level and biodiversity loss and degradation. (EEA, 2011: 2010). The islands’ natural water resources are entirely rain-fed, while over half of the drinking water produced by Malta’s major supplier is sourced from desalinated sea water. Malta’s groundwater resources are in a perilous state and suffer from severe over- exploitation. (Malta Independent 5/2/2014). Malta remains the most densely populated EU Member State, while at the same time tourism – a very important economic sector – places significant pressures on the environment due to additional consumption of resources (and related waste generation and transportation demand) and land take- up. The fact that almost 100 % of the population lives in coastal areas, mostly in densely populated coastal settlements, brings to the fore the need for energy efficiency in buildings. The inland also is almost exclusively dependent on fossil fuels for its energy supply. At the same time, the increased availability and lower prices of imported goods have increased household consumption, with impacts on environmental issues such as waste generation, energy use and transport. Overall, it is expected that increasing living standards will place continuing pressure on the environment, particularly through growth in the sectors of housing and other land development, transport, and tourism. Waste management, biodiversity protection, land use, water management, and air pollution, particularly the control of traffic emissions, are expected to remain pressure points. In the last decade, R&D intensity has been steadily increasing, reaching 0.73% of GDP in 2011. (Innovation Union, 2013). Malta has thus reached and exceeded its stipulated Europe 2020 Strategy target of 0.67% of GDP. Despite the progress made however, Malta remains a ‘moderate innovator’ and still scores under the EU average (EU Innovation Union 2013). An economic structure organized around the service sector and dominated by micro enterprises with less than 10 employees, negatively influences the capacity of the country to increase its overall R&D intensity. Given the size of the country and the capacity of the research system, Malta will need to specialize its R&D investments in particular niche fields where the system can achieve sufficient critical mass to support the local economy. Presently, Malta has identified health and biotechnology, energy and environmental technologies, ICT and value added manufacturing and services as potential areas to focus on.

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2 | Eco-innovation performance

The analysis in this section is based on the EU 28 Eco-innovation scoreboard (Eco-IS) for the year 2013. Eco-IS via its composite Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes Figure 2.1 EU28 Eco-innovation scoreboard 2013, composite index

Source: EIO, 2013 Malta’s composite index in 2013 stood at 67 compared to the EU-28 average index of 100, falling from 72 in 2012. Malta ranked in 17th place performing better than other new members states with small populations like Cyprus and Latvia but worse than Estonia. Malta exceeds the EU-28 performance in terms of Resource Efficiency Outcomes (110) but lags behind in eco-innovation inputs, activities and outputs and socio-economic outcomes.

Eco-innovation inputs The eco-innovation input index is based on the national indicators of the government’s environmental and energy R&D appropriations and outlays, R&D personnel, and cleantech investment. In this component, Malta is one of the weakest performs - sixth from the bottom - with a score of 26 (EU average index 100). In 2012 total government environmental and energy R&D appropriations and outlays amounted to 0.001% of GDP with an EU average of 0.043. The total R&D personnel and researchers for Malta in

Eco-innovation in Malta 7 2012 counted for 0.86% of total employment (EU average of 1.21%). In this regard Malta shows a stronger performance than Cyprus and Latvia (0.41 and 0.64 respectively) but not Estonia (0.94). No green early stage investments were reported during the period 2010-2013.

Figure 2.2 Components of the eco-innovation composite index for , 2013

Source: EIO, 2013

Eco-innovation activities The eco-innovation activities index of the Eco-IS is based on the statistics of ISO 14001 certified companies and of business innovation activities aimed at material efficiency and energy saving. Malta scores below the EU28 average (54 out of 100) in this index, coming fifth from the bottom (surpassing Greece, Cyprus, Poland and Latvia). According to Eco-IS the percentage of firms having implemented material efficiency innovations was 0.09 of all firms (EU average 0.13%). The percentage for energy saving was 10.11% of all firms (EU average 14.50%). Finally, the number of ISO 14001 certified organizations in Malta in 2012 was 23 translating into 55.08 registered organization per million of inhabitants. Eco-innovation output Malta scores below the EU average in this index. The country’s score receded from 97 in the 2012 Eco-IS to a mere 43 (EU index 100) and thus the country ranks third from the bottom above Slovakia and the Czech Republic. There were 2.42 per million inhabitants eco-innovation related patents registered in 2010 (EU average 7.60). The performance reflects the relatively limited available resources and the difficulty of translating research into technological innovation. The island is a very poor performer (sharing the last place with Bulgaria with a score of 14) in eco- innovation relation publications, with 1.27 publications per million inhabitants (2012) when the EU average was 8.84 publications per million inhabitants. Finally, in eco-innovation related media coverage (measured as the number of hits in all electronic media covered by "Meltwater News" with key-word "Eco-innovation" translated in all EU-28 languages) Malta scored close to the EU average. There were 7 hits counted in 2013 based on Meltwater’s screening of 116 electronic media sources. Hence, Malta's score was 84 (EU index 100). These considerations however have to be treated with some caution given the small size of the population.

Eco-innovation in Malta 8 Resource efficiency outcomes The environmental outcome index is based on combined national statistics on domestic material productivity, domestic water productivity, inland energy productivity, and GHG emissions intensity. Malta surpasses the EU28 average in the resource efficiency outcomes index with an overall score of 113 (EU index 100). The country ranks fourth overall only behind the Netherlands, Luxemburg and the United Kingdom. In material productivity (GDP/DMC) Malta was the overall leader (together with Luxemburg) with 3.16 €/kg (2011) when the EU average was 1.74 Euro/kg. In comparison material productivity in Estonia was 0.80 Euro/kg and in Latvia 0.73 €/kg. Water productivity, measured as GDP generated by domestic water consumption, was 7.11 €/m3 in for the period 1996-2005, equal to 55% of the EU27 average. Malta’s water footprint in the same year was approximately 866 m3 per capita. Malta performs above the EU average, with a score of 104% in energy productivity (GDP generated by domestic energy use). The country’s productivity reached 8.30 €/ton of oil equivalent (2011). Finally, GHG emissions intensity (amounts of GHG emissions generated per unit of GDP) was at 0.33 kg of CO2 equivalent/GDP in 2011, slightly below the EU27 average for the same year (0.36 kgCO2e/€).

Socio-economic outcomes Malta's performance in socio-economic outcomes (in 2012) was below the EU average. The country’s score was 86 (EU index 100). Eco-industry exports amounted to €1 million (2012) and were 0.11% of all exports (EU average of 0.59%). Employment in eco-industries was at 1.20% of total employment across all companies (2012). Finally, the size of the eco-industry was small, with revenue being 0.32% of total revenue across all companies (EU average 0.44%).

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3 | Selected eco-innovation areas and new trends

Malta does not possess mature eco-innovation markets but nonetheless there are certain sectors where important initiatives have been made. A notable development has been the adoption of the plan to transform Malta into the first smart- grid country in the world. The Maltese National Electricity and Water Utilities - Enemalta Corporation (EMC) and Water Services Corporation (WSC) - selected IBM for a 70 million EUR, five-year agreement to design and deliver a nationwide Smart Grid implementation. The solution is designed to improve operational efficiency and customer service levels by introducing smart meters that allow clients to better manage consumption. The project is the first step in establishing an end- to-end electricity and water smart utility system. IBM will replace all 250,000 analog electricity meters with new smart electronic devices. The company will also integrate water meters and advanced IT applications, enabling remote monitoring, management, meter readings and meter suspensions. The new smart grid, integrating both water and power systems, will be able to identify water leaks and electricity losses in the grid, allowing the utilities to better plan their investments in the network and reduce inefficiency. Installation of the Smart Meters by Enemalta to all its customers (free of charge) began in 2012. (Enemalta, 2014). Moreover, Malta has made good progress in green tourism. The country has established the ECO- Certification which is the national standard for ensuring the environmental, socioeconomic, and cultural sustainability of hotels on the Maltese Islands. It has been recognized by the Global Sustainable Tourism Council (GSTC) as fully reflecting its criteria. The scheme was launched by the Malta Tourism Authority in 2002 and today represents over 16% of hotel accommodation covering 5-star, 4-star and 3-star categories. Most recently the scheme was updated in June 2012 where it was revised to be in line with the GSTC criteria. GSTC fully recognized the updated criteria meaning that the new sustainable tourism standard was reviewed by the Council’s technical experts and Accreditation Panel and deemed equivalent to the GSTC criteria for sustainable tourism. The new criteria follow a shift from an environmental scheme to a sustainable scheme covering environmental, social, cultural, economic, quality and health & safety. Third party audits are carried out every two years to ensure that the hotels are meeting the requirements of the scheme. In the crucial water management sector, the country has taken some important initiatives. (MEPA, 2011) Other than the HOTER innovation (see 2011 report) the EU LIFE+ ‘Investing in Water’ project aims to help businesses and hotels reduce their water consumption. The project provides expert advice to enterprises on water saving opportunities present in their operations and how best to achieve them. The project, in early 2012, concluded a set of Water Audits with around 40 enterprises from various sectors. This set of audits highlighted water saving opportunities and potential solutions applicable in many scenarios. The project also offers enterprises individual consultations on identifying the solutions most relevant to their circumstances and on how to implement them. In 2013 an agreement was signed between the Malta Tourism Authority, the Malta Hotels and Restaurants Association and the Malta Business Bureau that will see the water saving initiatives taken by hotels as part of the EU LIFE+ ‘Investing in Water’ project recognised as meeting ECO-Certification award criteria, facilitating hotels' acquisition of the label. (Life + Project, 2013).

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4 | Eco-innovation barriers and drivers in Malta

Eco-innovation drivers: Malta enjoys a rich natural capital in terms of renewable energies and biodiversity. The potential for solar energy in particular is substantial. (Malta Today 18/9/2013; DG Energy and Transportation, 2008; Fondation de Malte, 2006). Concerning innovation capacity, in dynamic terms Malta has been progressing in terms of R&D investments and this is also reflected in its scientific and technological outputs. The Maltese Government has put in place a range of measures aimed at training enough researchers to meet its R&D targets and at promoting attractive employment conditions in public research institutions. (Innovation Union, 2013; DG Research, 2013). Equally, public authorities have put in place a good range of financial incentives and fiscal assistance towards supporting innovation: e.g. investment tax credits; tax credits for micro enterprises; loans, guarantees and interest subsidies for new investment projects; consultancy services for SMEs; support schemes for projects dealing directly with eco-innovation (ERDF Environment Actions); assistance with preparatory technical feasibility studies; cash grants to help SMEs develop project proposals for EU funding. Finally, since joining the EU (2004) Malta has invested heavily in environmental infrastructure and regulation. An Environment Protection Act was enacted in 2001, under which some 250 pieces of subsidiary legislation had been passed by 2008. During this time, the EU has provided an important source of funding in the environmental field, principally through the Structural Funds.

Eco-innovation barriers: On the other hand, the prevalence of SMEs in the economic structure limits the potential for innovation. Inherently the Maltese market is small and growing a business by simply focusing on the local individual consumers and businesses is extremely difficult. Additionally, Malta is one of the least developed financial markets in the EU as far as eco-innovation is concerned. Energy utilization in Malta remains nearly entirely dependent on imported fossil fuels while the exploitation of renewable energy sources is still minimal. In 2011, energy from renewable sources was estimated to have contributed 0.4% of gross final energy consumption in Malta. The country is committed to generate 10% of its energy from renewable sources till 2020. There is thus an urgent need for more decisive action in the promotion of renewable energies. (MEPA, 2013; Malta Today 26/4/2013: NAO, 2009). Malta has a relatively low percentage of science and technology (S&T) graduates and consequently a low percentage of Human Resources in Science and Technology (HRST) in the labor force, compared to other EU Member States. Moreover, R&D expenditure, personnel, researchers and outputs are low when compared to EU-27 average. (Innovation Union, 2013). Links between research institutes and businesses are weak while the country’s cluster policy does not target environmental performance or eco-innovative practices. (Barsumian et al. 2011; E-skills Alliance Report, 2012)

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5 | Eco-innovation policy landscape

Malta’s draft National Strategic Plan for Research & Innovation (2011-2020) consolidates investment in eco-innovation through the setting up of a thematic platform and the preparation of a dedicated R&I strategy for energy and environment and aims to provide support to local capacity building in these areas through the National R&I Programme and the award of scholarships (MCST, 2011: 50). It defines eco-innovation as “all forms of innovation aimed at reducing environmental impacts and/ or optimising the use of resources throughout the lifecycle of related activities. It includes new production processes, new products or services and new management and business methods.” The first integrated National Environmental Policy launched in 2012 following an intensive period of public consultation also dovetails with the R&I Strategy concepts by placing an emphasis on the green economy and eco-innovation and identifying the need for “a high level of research and development (R&D) and innovation” (MTEC, 2012: 28). The policy document takes a detailed and holistic approach to addressing various environmental issues, whilst seeking to build on synergies among the various aspects of sustainable development, such as through promoting green jobs. The Green Public Procurement (GPP) Action Plan promotes innovative procurement. Where possible GPP stimulates eco-innovation by specifying the desired innovation (for example, energy efficiency) without over-specifying the process for achieving this in tender documents. (MTEC, 2012: 32-35). The ERDF Innovation Actions Grant Scheme for the Environment supports innovation in Small and Medium-sized Enterprises through investments in environmentally friendly technologies. Supported projects are expected to sustain long term competitiveness and contribute to environmentally sustainable business activities by addressing water and air quality; waste streams; and resource utilization. (MCST, 2011: 24). In the sector of energy efficiency, the roof thermal insulation scheme was active from April to the end of 2012 (renewed in 2013). In this context, grants were paid by the government for the thermal insulation of roofs as well as for double glazing of windows. 15.25 percent of the total costs and a maximum amount of €1.000 were granted for the purpose of reducing energy consumption (MRA 2012a; Energy Efficiency Watch, 2013). In May 2013 the Government launched a photovoltaic panels scheme that offered a maximum €2,500 rebate on the capital costs incurred by families who opted for this system. At the same time, the generation of electricity from photovoltaic installations is promoted through a feed-in tariff. Active since 2010, the FiT is relevant for operators of PV installations for a period of 8 years. The Ministry of Resources and Rural Affairs allocates once-only grants for solar water heating systems to private homeowners. This support scheme is partly funded by the ERDF-scheme. The amount of grant for solar water heaters is 40% of eligible costs up to a maximum of €560 (Banasiak, 2013: MRA 2011). On the other hand, in 2013 Malta Enterprise cancelled the Solar Energy Grant Scheme – due to problems encountered in the process of pre-selection of suppliers. The €5.5 million project was to be partially funded by the European Regional Development Fund (ERDF). (PV Magazine 20/8/2013). In the transport sector, in 2012 the ‘Plug-in Vehicles’ scheme promoted the use of exclusively electric cars. Applicants could apply for a grant of 25% up to €4000 on the purchase price of the vehicle. (MRA 2012b).

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6 | Good practice examples

Example 1 EcoGozo Gozo is the second largest island in the Maltese archipelago, measuring about one third the size of Malta, and is the home of around 30,000 inhabitants. Gozo is to become an eco-island by 2020. The Eco-Island vision for Gozo, is essentially a Local Sustainable Development strategy adopted by the Government in 2009. Through a holistic approach, this strategy seeks to achieve an enduring environmental improvement while at the same time, foster economic development and social progress on the island. The preparation of the Action Plan for EcoGozo involved extensive public consultations. EcoGozo aims to introduce more sustainable forms of agriculture, transport and tourism, and improved resource management. The visitors will be encouraged to use collective transport systems instead of private cars. Furthermore, concerning sustainability in the agricultural sector, environmentally beneficial practices will be encouraged through educational programs (e.g. Integrated Pest Management, Integrated Resource Management, and sustainable water use leading towards the adoption of organic farming practices).(MTEC, 2012: 7073). The government also proposes to set up an Agricultural Research, Development and Innovation Centre in Gozo. To complement these a Gozo quality label of agricultural products will be established. Concerning energy the government plans to Identify optimal sites for small onshore wind farms and develop small onshore wind farms with a limited number of turbines; utilise rooftops of public buildings and other spaces such as public car parks for renewable energy projects involving solar energy; install additional photovoltaic panels at the Ministry for Gozo funded from savings in electricity bills arising from replacement of the existing energy supply; carry out energy audits on all public buildings including the Gozo Administration Centre; convert all lighting systems in offices and public places to energy-saving lighting; provide free consultation to people on how to convert their houses to be energy efficient; award companies, households, villages and streets committed to energy-saving with a 'Green Award'.

With regard to water management the plan foresees the identification of areas where reservoirs could be constructed so as to collect rainwater and prevent flooding; promoting the collection and use of rainwater in households and enhancing the implementation of systems for the re-use of water and distribute a water savings kit to each household; promoting a cost-effective utilisation of treated sewage effluent for secondary uses such as agriculture, landscaping and industry. Finally, in waste management the Ministry for Gozo, Wasteserv and Local Councils will work together to increase the proportion of recyclables collected in Gozo to an established target above the national targets. A mechanical biological treatment plant for the treatment of municipal solid waste and manure is established. Compost for use in agriculture and/or landscaping projects is produced from waste. Keywords: Gozo, eco-island, sustainability, public participation Link: http://www.ecogozo.com/index.php?lang=en

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Example 2 Fertilandia The main objective of the project FERTILANDIA is to commercialize an Organic Nitrogenous Fertilizer named "pellicino integrato" (integrated leather meal) made of a mix of leather meal and dewatered sludge rising from tannery wastewater treatment plants. Nowadays solid waste, like integral hair and trimming cattle raw skins, are collected and destroyed by incineration. The specific object of the action is to replace the animal meals component with leather meal in order to obtain the fertilizer (recycling and re-using all tannery wastes). The total sludge production of a wastewater plant can be reused in the production of integrated leather meal and an amount of 12.000 ton/year of solid waste from tanneries will be processed to obtain the leather meal, thus allowing a remarkable reduction of greenhouse emissions and soil pollution. Integrated leather meal is a nitrogenous fertilizer with high content of digestible organic matter. It is designed to replace most common chemical fertilizers as ammonium nitrate, ammonium sulphate and urea. It was estimated that over hundred years the utilisation of ’compost’, similar in composition with integrated leather meal, will consent to reduce 54 Kg of equivalent CO2 per ton of utilized compost. The use of organic fertilizers in agriculture could therefore contribute in reducing carbon presence and air pollution. The disposal of sludge and bio-waste produces a pollutant leachete and biogas. Keywords: organic fertilizer, sludge, soil polution, greenhouse emmissions Link:http://www.cuoiodepur.it/pubblicazioni/Fertilandia/Brochure%20FERTILANDIA%20- %20ENGLISH%20VERSION%20V1.3%20REVISED.pdf

Eco-innovation in Malta 14 Example 3 DemoEV DemoEV stands for ‘Demonstrating the feasibility of electric vehicles towards climate change mitigation’. The main goal of this project is to introduce electric vehicles in the Maltese Islands while testing and demonstrating the feasibility of full electric vehicles in the Maltese context. The project will contribute towards these objectives by implementing a pilot that will run from September 2011 to December 2014. Twenty-four full electric vehicles of different sizes and segments will be distributed among volunteers ranging from private households, commercial delivery companies and government entities. The uniqueness of this pilot project lies in the fact that the vehicles will be tried and tested by private citizens and companies who will use them as their primary household/business cars, and thus test the actual feasibility of electric vehicles when applied in the day-to-day household and commercial needs. Keywords: emission reduction‚ climate protection‚ greenhouse gas‚ electric vehicle Link: http://mti.gov.mt/en/Pages/Electromobility/DEMO-EV.aspx

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Example 4 Deep-offshore wind (DOW) The project deals with the development of a novel deep water supporting structure for offshore wind turbines. Established design methodologies will be applied to define the technical requirements for supporting wind turbines at sea depths of 70 meters in Maltese wind and sea/wave conditions. The project will evaluate the feasibility and costs for constructing such structures locally and to develop a large offshore wind farm in the Maltese waters. The project is a preliminary phase of a much larger project, in line with the country’s strategy, intended to explore in detail the possibility of deep offshore wind energy in Malta in an area which is 5 to 14 km from the coast and that has the potential of generating up to circa 36% of the current electricity demand. Keywords: renewable energy, off shore, wind, deep waters, electricity Link: http://www.dow.edu.mt/ http://www.renewableenergymagazine.com/article/deep-water-offshore-wind-farms-viable-by- 20130906

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References

Banasiak J., 2013, Assessment of Climate Change Policies in the Context of the European Semester: Country Report Malta. Available at: http://www.ecologic.eu/sites/files/publication/2013/Country-report-Malta-Assessment-of-climate- change-policies-in-the-context-of-the-European-semester_2013_en.pdf Barsumian et al. 2011, Eco-innovation and national cluster policies in Europe. Greenovate Europe EEIG. Available at: http://www.clusterobservatory.eu/system/modules/com.gridnine.opencms.modules.eco/providers/ge tpdf.jsp?uid=fcc9f732-b34e-4a6f-b190-22dd791bf955 DG Energy and Transport, 2008, Malta Renewable Energy Fact Sheet. Available at: http://www.energy.eu/renewables/factsheets/2008_res_sheet_malta_en.pdf DG Research and Innovation 2013, Researchers’ Report Malta. Available at: http://ec.europa.eu/euraxess/pdf/research_policies/country_files/Malta_Country_Profile_RR2013_FI NAL.pdf Enemalta, 2014. http://www.enemalta.com.mt/index.aspx?cat=5&art=21&art1=55 Energy Efficiency Watch, 2013, Country Report Malta. Available at: http://www.energy-efficiency-watch.org/fileadmin/eew_documents/Documents/EEW2/Malta.pdf E-skills Alliance Report, 2012, Clustering: An opportunity for Industry Development in Malta? Available at: https://www.mita.gov.mt/MediaCenter/PDFs/2_MITA%20Clusters%20Document.pdf European Environment Agency, 2011, Country Profile Malta. Available at: http://www.eea.europa.eu/soer/countries/mt/soertopic_view?topic=country introduction European Environment Agency, 2010, Climate Change Mitigation. Outlook 2020 – Malta. Available at: http://www.eea.europa.eu/soer/countries/mt/climate-change-mitigation-outlook-2020-malta Fondation de Malte, 2006, Renewable Energy in Malta. Available at: http://www.fondationdemalte.org/Downloads/Telos0601.pdf Innovation Union, 2013, Research and Innovation Performance in EU Member States and Associated Countries. Available at: http://ec.europa.eu/research/innovation-union/pdf/state-of-the- union/2012/innovation_union_progress_at_country_level_2013.pdf Life + Program Malta, 2013. Available at: http://ec.europa.eu/environment/life/countries/documents/malta_en_nov2013.pdf. Malta Council for Science and Technology (MCST), 2011, Malta’s National Strategic Plan for Research and Innovation 2011-2020: A Vision for Knowledge-Driven Growth. Available at: http://mcst.gov.mt/files/uploaded/National%20Strategy%20DRAFT.pdf Malta Environment and Planning Authority (MEPA), 2011, The Water Catchment Management Plan for the Maltese Islands. Malta Environment and Planning Authority (MEPA), 2013, Renewable Energy - Are we doing enough? http://www.mepa.org.mt/outlook13-article7

Eco-innovation in Malta 17 Malta Independent 5/2/2014, Malta needs National Water Management Plan. Available at: http://www.independent.com.mt/articles/2014-02-05/news/malta-needs-national-water- management-plan-3882582016/?utm_source=twitterfeed&utm_medium=twitter Malta Resources Authority (MRA) 2011, Solar water heater scheme. Available at: http://mra.org.mt/support-schemes/2011-swh-scheme/ Malta Resources Authority (MRA) 2012a, Grant on the Purchase of Systems for Domestic Use that Reduce the Consumption of Energy. Online available at: http://mra.org.mt/wp-content/uploads/2012/09/gn-409-of-2012.pdf Malta Resources Authority (MRA) 2012b, Plug-In Vehicles scheme. Online available at: http://mra.org.mt/support-schemes/2012-plug-in-vehicles-scheme/ Malta Today 26/4/2013, Malta with Lowest Renewable Energy Share in EU. Available at: http://www.maltatoday.com.mt/news/world/26367/malta-with-lowest-renewable-energy-share-in-eu- 20130426#.UzwIbBvxtoI Ministry for Tourism the Environment and Culture (MTEC), 2012, National Environment Poilcy. National Audit Office (NAO), 2009, Renewable Energy Sources and Energy Efficiency in Malta. Available at: http://www.eurosaiwgea.org/Environmental%20audits/Energy/Documents/2009%20- %20Malta%20Full%20report%20Renewable%20Energy%20Sources%20and%20Energy%20Efficie ncy.pdf PV Magazine 20/8/2013, Malta cancels EUR 5.5 million commercial rooftop scheme. Available at: http://www.pv-magazine.com/news/details/beitrag/malta-cancels-eur55-million-commercial-rooftop- scheme_100012440/#axzz2uQvM2pWv Renewable Energy Magazine 5/9/2013, Deep water offshore wind farms viable by 2020 says Maltese study. Available at: http://www.renewableenergymagazine.com/article/deep-water-offshore-wind-farms-viable-by- 20130906

Eco-innovation in Malta 18 ANNEX 1. Policy measures addressing eco-innovations in Malta

Focus of policy measure (tick if relevant) Specific measure Other Group of policy Type of policy Generic Resource Energy Reduction relevant measures measure Please provide reference to or brief summary of specific measures (national, focus on efficiency efficiency of areas (e.g. regional) eco- improvem improvem emissions renewable innovation ent ent incl. CO2 energy, etc) Venture capita funds - Bank of Valletta’s JEREMIE Financing Package offers advantageous interest rates and enhanced collateral requirements earmarked for SMEs as part of the EU’s X 2020 Strategy. Target sectors include: · Tourism and related services including accommodation and food service activities; · Creative sector including arts, entertainment and recreation; · Information, Communication and Technology; · Manufacturing of traditional and new products and services such as aviation; · Professional, scientific and technical services; and Equity/busines · Wholesale, retail and the associated storage services. s support Public guarantee funds Through the BOV JEREMIE Financing Package, SMEs and micro-enterprises will be able to: · Improve the performance of their operations through capital investment in plant and equipment; · Launch new products and services in new niche markets through capital investment; · Tap into new export markets by improving the Malta-based operations; · Enhance the presence on the World Wide Web; · Invest in Green Technology; and · Promote and transform Gozo as an ecological island. Various offers are available to assist innovative enterprises to engage in research Support for R&D funding and development. These can take the form of grants or tax incentives X X X X X SUPPLY SIDE FOCUS SUPPLYSIDE R&D in public The collaborative R&D Grant Scheme supports Maltese enterprises that carry out sector and an industrial research or experimental development project in collaboration with X industry other enterprises. The project should lead to the development of innovative products, processes and services based on advanced technologies. Projects may only be funded if they are endorsed by the EUREKA network or approved through the Eurostars Joint Programme. Support is provided through refunds that part-finance pre-approved costs. Such costs may include: · Personal costs (wages) of researchers and technicians; Collaborative grants · Depreciation costs of new instruments and equipment; · The costs of material, supplies and similar products, bought specifically for the research project; · Cost incurred for the procurement of technical knowledge and acquisition of patented knowledge and technology; · EUREKA is an intergovernmental network launched in 1985, to support market- oriented R&D and innovation projects across all technological sectors.

Eco-innovation in Malta 19 http://support.maltaenterprise.net/index_files/CollaborativeRD.htm http://support.maltaenterprise.net/ Various schemes are available to support R&D Infrastructure including the ERDF Research and Development Grant Scheme providing grants to enterprises carrying out Industrial Research and Experiential Development activities leading to the development of new or significantly improved products, processes or services. The scheme will part-finance eligible costs related to industrial research projects and experimental development projects. These costs include: · wages of researchers and technicians; · depreciation costs of new instruments and new equipment; R&D infrastructure · costs of material, supplies and similar products, bought specifically for the

research project; · subcontracted research; · the purchase of technical knowledge and patents.

http://support.maltaenterprise.net/index_files/Page453.htm http://support.maltaenterprise.net/index_files/Page340.htm Providing assistance to enterprises investing in Industrial Research and Experimental Development to develop innovative products and solutions. · supporting Small and Medium-sized Enterprises (SMEs) in protecting the knowledge gained from Industrial Research and Experimental Development Tax incentives for projects. Fiscal R&D and start-ups · encouraging cooperation between firms by providing additional assistance for measures collaborative Industrial Research and Experimental Development.

http://support.maltaenterprise.com/Documents/R&D-TaxCredits/Guidelines.pdf http://support.maltaenterprise.com/Documents/SM-SmallStart/Guidelines.pdf Tax incentives for R&D personnel Through the Training Aid Framework financial assistance is given to those companies that invest in the training of their workforce. This scheme is available for companies in the private sector and the subsidy will vary according to the type of training and the size of the enterprise. Training can be in-house or out-sourced Tailored training Education, and can be given in Malta or courses for training and abroad through distance learning. The Training can be a course at the University companies, mobility of Malta or at a foreign university. The training can even lead to a PhD. Self- entrepreneurs employed persons will also be eligible. Each company will be eligible for a maximum of €250,000 each year. http://www.etc.gov.mt/site/page.aspx?pageid=2280 http://www.etc.gov.mt/docs/TAF%20New%20Guidelines%20June2011.pdf Small and Medium Enterprises (SMEs) can benefit from the temporarily engaging highly qualified experts to work on R&D&I projects. The expert will help the SMEs to carry out an Industrial Research and Experimental Development projects. Malta Enterprise may provide part financing of the costs directly related to the Advise/consulting for secondment of highly qualified personnel, seconded from a research organisation start ups, companies, or large enterprise. These costs may consist of wages paid by the SME to entrepreneurs seconded personnel or fees charged by the research institute or large undertaking

Eco-innovation in Malta 20 for such secondment. http://support.maltaenterprise.com/Documents/R&D-Experts/Guidelines.pdf ! Malta!Enterprise!provides!business!advisory!services!in!the!below!areas:!•!Marketing & Business Management • Research, Technological Development & Innovation • Business Advisory & Enterprise Support Enterprises may benefit from the expertise of the advisors that will support them in their particular needs for development. Business Advisory Services are charged at €40 per hour, part of which is part financed by Malta Enterprise. The Corporation may also allocate up to ten hours of free advisory services to help the enterprises and the assigned advisor to carry out preliminary assessments. http://support.maltaenterprise.com/Documents/ES-Advisor/Guidelines.pdf!! The Technician Apprenticeship Scheme (TAS) leads the apprentice to obtain an occupational competence at technician level (level 4 according to the MQF Level Descriptors). This means that at the end of the apprenticeship you will have the competence to supervise the routine work of others, taking some responsibility for the evaluation and improvement of work. http://www.etc.gov.mt/site/page.aspx?pageid=2188

INT (Ibda Negozju Tieghek)(Start Your Own Business) is a one stop entrepreneurship programme aimed at promoting an enterprise culture among those people who are interested in taking up self-employment by opening up their own small business. The programme is a direct response to the rapid changes that are occurring in the local and international labour markets. Among the salient needs are the ever growing imperatives of innovation, initiative and Placement schemes entrepreneurship. The entrepreneurial start-up offers a challenge and, therefore, for students ETC aims to provide advice and training to prospective entrepreneurs. To reach these objectives the corporation had established a Unit to provide this advice and assistance to emerging entrepreneurs. This will assist these people in the starting-up, development and running of their business. http://www.etc.gov.mt/site/page.aspx?pageid=2309

The Training Subsidy Scheme, part of the ESF Funded Employability Programme, aims to assist self-employed persons and persons employed in micro-enterprises of 10 or less employees, apprentices, the unemployed, NGO and Local Council employees to develop their skills by participating in further off-the-job vocational education and training. The Training Subsidy Scheme offers assistance in the form of a training grant to aid participants with costs related to training. This grant will be awarded to the individuals after successful completion of their training. http://www.etc.gov.mt/site/page.aspx?pageid=2284 STEPS aims at providing more opportunities to promote further specialisation at higher levels of education. This is done by supporting an increase in the number of Support for R&D students following postgraduate courses, hence increasing the availability and workers recruitments employment of high-level graduates in the priority of sectors of the knowledge- based economy in Malta. https://www.meef.gov.mt/Page.aspx?pid=266&depid=2&pageid=13 Networks and Competence centres, The Life Sciences Park: The Park offers locations for start-ups and existing partnerships clusters, science- companies and is geared towards advanced pharmaceutical research & business

Eco-innovation in Malta 21 development. The Park’s goal is to intensify cooperation in the areas of education, research and innovation by providing state of the art infrastructures, creating access to scarce expertise and increasing access to grants and funds. In doing so the park’s mission is to become a leading district in the coming years. Ultimately, technology parks The Life Sciences Park represents a focal point connecting university students, researchers, lecturers, hospital professional staff and industry to interact and establish new technology and research-based firms as well as clusters. http://www.lifesciencespark.com/about The Euro-Mediterranean Initiative for Technology and Innovation. X The principal objective of EuroMedITI is that of engaging European and Networks and Technology platforms Mediterranean Businesses, Academic and Research Entities, and National partnerships and innovation Governments for the development, customisation and deployment of innovating networks technologies in sectors that have a special relevance to the Euro-Mediterranean Region.

http://www.mcst.gov.mt/files/uploaded/EuroMedITIExecutiveSummary.pdf Foresight and common vision building Market intelligence and other forms of information sharing

Regulations, targets, cap & trade schemes Registration of EMAS sites. http://www.msa.org.mt/emas/index.htm X

Accreditation of EMAS verifiers. http://www.msa.org.mt/accreditation/index.htm Regulations and standards Performance European Eco-Label Scheme standards, labeling, http://www.msa.org.mt/ecolabel/index.htm certification MSA EN ISO 14001:2004 - Environmental Management System Certification http://www.msa.org.mt/certification/services14001.htm

Eco-certification of hotels DEMAND SIDE FOCUS http://www.mta.com.mt/eco-certification The Green Public Procurement (GPP) Action Plan promotes innovative “Green“ public X X Public procurement. Where possible GPP stimulates eco-innovation by specifying the procurement procurement of desired innovation (for example, energy efficiency) without over-specifying the goods and services process for achieving this in tender documents. R&D procurement

Eco-innovation in Malta 22 Pre-commercial procurement Advisory support for technology adopters In May 2013 the Government launched a photovoltaic panels scheme that offered X X X a maximum €2,500 rebate on the capital costs incurred by families who opted for this system. At the same time, the generation of electricity from photovoltaic installations is promoted through a feed-in tariff. Active since 2010, the FiT is relevant for operators of PV installations for a period of 8 years. The Ministry of Resources and Rural Affairs allocates once-only grants for solar water heating systems to private homeowners. This support scheme is partly funded by the ERDF-scheme. The amount of grant for solar water heaters is 40% of eligible costs Financial or fiscal up to a maximum of €560 (MRA 2011). Technology support for technology Transfer adopters In May 2013 the Government launched a photovoltaic panels scheme that offered a maximum €2,500 rebate on the capital costs incurred by families who opted for (e.g. grants for this system. At the same time, the generation of electricity from photovoltaic purchasing new installations is promoted through a feed-in tariff. Active since 2010, the FiT is technology) relevant for operators of PV installations for a period of 8 years. The Ministry of Resources and Rural Affairs allocates once-only grants for solar water heating systems to private homeowners. This support scheme is partly funded by the ERDF-scheme. The amount of grant for solar water heaters is 40% of eligible costs up to a maximum of €560 (MRA 2011). In the transport sector, in 2012 the ‘Plug-in Vehicles’ scheme promoted the use of exclusively electric cars. Applicants could apply for a grant of 25% up to €4000 on the purchase price of the vehicle. Tax incentives for consumers (e.g. for purchasing environmentally efficient products) Tax reductions for Support of products and services

private demand (e.g. VAT reductions) Demand subsidies (e.g. eco-vouchers, consumer subsidies)

Awareness raising and information provision

Eco-innovation in Malta 23

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