Transport Malta launches €15m financial grant for purchase of new electric vehicles
The Minister for Transport, Infrastructure and Public Works Dr Chris Bonnet announced a €15m financial grant for the purchase of new electric vehicles (EVs).
This scheme is a 2024 budget measure aimed at encouraging the purchase of electric vehicles and motorcycles, including new pedelecs, for individuals, voluntary organisations and enterprises, he said at a press conference.
Malta has been benefiting from the €50.3m funds obtained from the EU under the Recovery and Resilience Plan (RRP), aimed at addressing challenges related to increased energy consumption and waste generation due to rapid population, employment and GDP growth.
Originally intended for the period between 2022 and 2024, Transport Malta worked with the EU to extend the fund availability until the end of 2025, ensuring that financial incentives will continue to be offered using EU RRP funds in 2025.
Jonathan Borg, Transport Malta’s chief Executive officer, said that "the €15m investment from European funds will serve as a catalyst for increased public investment in electric vehicles. These funds will contribute to creating a more environmentally-friendly and sustainable landscape in our country".
Additionally, he announced that starting this year, Transport Malta will introduce an online system to streamline the application process for those interested in the scheme, making it more accessible.
The authority is confident that these incentives will aid the transition of Malta and Gozo's transport sector towards clean and sustainable mobility, he said. Electric vehicles and plug-in hybrids with an electric autonomy of 50km or more will remain exempt from registration tax and annual road license fees for five years from the date of first registration.
The initiatives and grants announced for 2024 include: 1. The extension of the new
electric vehicle purchase
scheme will entitle buyers to various grants based on the vehicle type. Individuals purchasing new electric vehicles, including motorcycles, will receive grants ranging from €500 for each new pedelec (bicycles assisted by an electric motor) to €2,000-€6,000 for electric motorcycles, tricycles and quadricycles. Additionally, grants of €11,000 will be provided for cars and vans, with larger amounts allocated for large vehicles used for transporting passengers or goods. The specific amounts for electric vans will be determined on a case-by-case basis.
2. In conjunction with the extension of the purchase scheme, a scrapping initiative will be implemented. Financial incentives for scrapping will vary, with amounts such as €500 for motorcycles, €1,000 for cars, €30,000 for minivans and up to €50,000 for coaches older than 10 years. The scheme will also maintain an additional financial grant of €1,000 for scrapping old vehicles registered in Gozo.
3. Similar to the approach
taken in the previous year, the scheme is designed to assist Maltese voluntary companies and associations interested in investing in electric vehicle fleets, including those operating with large vehicles. To accommodate diverse applicant needs, incentives are offered under two existing state aid regulations: DeMinimis, limiting state aid to €300,000 (increased from €200,000 to €300,000) every three years, and GBER, which has no set limits but entails more conditions. The GBER is applied only in cases where the DeMinimis rules are not suitable for the concerned applicant. In 2023, Transport Malta approved a total of 2,414 applications, while in 2022, 1,375 new electric vehicles were approved, bringing the total to 3,789 vehicles. The success of these sustainable transport initiatives is evident, with a total of 14,447 vehicles, including 10,350 electric vehicles and 4,097 plug-in hybrid vehicles recorded by the end of December 2023. This positive response indicates a strong endorsement of these initiatives.