Yes, Malta signed the Paris Agreement on 22 April 2016 and proceeded to ratify same in October 2016. The EU and its Member States, including Malta, communicated its INDC on 6 March 2015 wherein they made their commitment to a binding target of at least 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990, to be fulfilled jointly.

Malta has a comprehensive policy framework addressing climate change, incorporating legislation (refer to question 4 below for more details) complemented by overarching policy instruments. Among the key policy documents, the following are of particular importance:

• 2009 National Strategy for Policy and Abatement Measures Relating to the Reduction of Greenhouse Gas Emissions: the first comprehensive policy document addressing specifically the abatement of greenhouse gas emissions from a wide range of economic activities taking place in Malta;
• 2010 National Climate Change Adaptation Strategy: the first comprehensive strategy addressing climate change adaptation in Malta;
• 2012 National Energy Policy;
• 2017 Renewable Energy Action Plan for 2020;
• 2017 National Energy Efficiency Action Plan for 2020;
• 2017 Malta Low Carbon Development Vision: this is the first step towards a national low carbon development strategy, currently under preparation, with a 2050 vision;
• National Energy and Climate Plan (final version submitted to the European Commission in December 2019): this plan is in fulfillment of obligations arising from the EU’s Energy Union Governance Regulation, and covers a number of key objectives relating to energy and climate policy, including decarbonization, with a 2030 vision;
• 2020 National Strategy for the Environment 2050, Wellbeing First: A Vision for Malta’s Environment: this strategy recognizes the environmental social and economic wellbeing dimensions at par and seeks strategic alignment across government entities. It endeavors to set the policy framework for plans, policies and programs issued under the Environment Protection Act or under any other Act for the protection and sustainable management of the environment.
• Malta’s Sustainable Development Strategy for 2050 which is currently being drafted by the Ministry within the Office of the Prime Minister (MSD
• Malta is part of the joint European Union effort towards reducing greenhouse gas emissions by 20% by 2020, and by 40% by 2030, both targets compared to 1990 emission levels, with a long-term goal of achieving carbon neutrality by 2050. The emission reduction efforts are met through two policy approaches:
• greenhouse gas emissions from large industrial activities, such as power generation, through the EU Emissions Trading System (EU ETS), which sets an overall cap of emissions on such industry, with an obligation for each installation to surrender emission allowance in accordance with verified emissions. The EU ETS has been extended to also cover aviation activities within the European Economic Area;
• emissions from other sectors, including, among others, buildings, transport, smaller industrial activities, agriculture and waste, through emission limitation or reduction targets for the individual EU Member States, under the so-called Effort-Sharing Decision (for 2020), to be replaced by the Effort-Sharing Regulation (for 2030). Malta’s target for 2020 is a limit on the growth of greenhouse gas emissions by not more than 5% compared to 2005 levels, and, for 2030, a reduction of at least 19% compared to 2005 levels.

There is no specific legislation limiting or prohibiting the use of fossil fuels or any other type of energy source. However, in practice, various policy consideration, including environmental, the need to ensure sustainable and secure energy supplies, diversification of energy supplies, and obligations arising from international and EU commitments, recent years have seen a shift from coal to oil-fired electricity generation, followed by investment to change the local generation capacity to predominantly natural gas-based, complemented by investment in linking Malta to the European electricity grid via an interconnector with Italy. In fact, greenhouse gas emissions from power generation have seen a significant decrease in recent years. These changes are complements by efforts to increase the uptake of indigenous renewable energy sources, primarily solar, and improved efficiency in the supply and user-end energy efficiency.

Similar efforts are also ongoing with regards to meeting the energy needs of internal mobility, dependent on road transport, with efforts towards improving the environmental profile of transport sectors, including incentivizing greater uptake of mass public transport, alternative modes of transport, alternative fuels and electrification. Indeed, consultations are currently ongoing to determine a date by which internal combustion engine vehicles would no longer be allowed to be placed on the market.

As a Member State of the European Union, all climate change law adopted at EU level is applicable in Malta.

Of particular importance is the applicability of Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action which is an ‘umbrella’ legislative instrument aimed at setting out the manner in which 2030 EU energy and climate objectives should be achieved. This legislation requires the Member States to, among others;

• prepare ‘long-term strategies’ towards fulfilling the objectives of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, achieving long-term greenhouse gas emissions reductions, and contributing towards a highly energy-efficient and highly renewable-based energy system with the Union;
• prepare, and periodically update, integrated national energy and climate plans covering the five dimensions of the EU Energy Union, namely: decarbonization, energy efficiency, energy security, internal energy market, and research, innovation and competitiveness.

With specific reference to national legislation, in 2015 Malta adopted the Climate Action Act (Chapter 543 of the Laws of Malta) which sets the national legislative framework for climate action, contributing to the mitigation of climate change by limiting anthropogenic emissions of greenhouse gases and protecting and enhancing greenhouse gas sinks and reservoirs, and to contribute to the prevention, avoidance and reduction of adverse impacts of climate change and the reduction of vulnerability, enhancement of resilience, and adaptation to the adverse effects of climate change. The Climate Action Act establishes a national Climate Action Board, a Climate Action Fund and sets out requirements on the government to prepare and update low carbon development strategies and national adaptation strategies.

Subsidiary legislation is in place to transpose specific EU legislation related to climate change, into national law. Such subsidiary legislation includes legal notices to provide for the establishment of a national system for the reporting of national greenhouse gas emissions by sources and removals by sinks, and legislative provisions for the implementation in Malta of the EU Emissions Trading System for stationary installations and for aviation activities.

Another important piece of national legislation in the context of climate change is the Environment Protection Act (Chapter 549 of the Laws of Malta) which, together with all the relative subsidiary legislation adopted thereunder, establishes several regulatory controls linked with the duty of every person and entity to protect the environment and to take preventive and remedial measures aimed at protecting the environment and managing natural resources in a sustainable manner.

Yes. As a member of the European Union Malta forms part of the European Union’s multi-country and multi-sector emissions trading system, covering large, stationary, greenhouse gas-emitting industrial installations and aviation activities. Subsidiary Legislation 423.50 entitled ‘European Union Greenhouse Gas Emissions Trading System for Stationary Installations Regulations’ and Subsidiary Legislation 423.51 entitled ‘European Union Greenhouse Gas Emissions Trading System for Aviation Regulations’ are the two legal instruments transposing Directive 2003/87/EC on the implementation of the EU emissions trading system in the European Union, as amended by a number of subsequent Directives, Decisions and Regulations namely: Directive 2004/101/EC, Directive 2008/101/EC, Directive 2009/29/EC, Decision (EU) 2015/1814; Regulation (EU) 2017/2392 and Directive (EU) 2018/410. It is to note that all four public electricity generation plants operating in Malta at present fall within the scope of the EU ETS. No other industrial establishments large enough to fall under the EU ETS are presently operating in Malta. It is also worth noting that none of the EU ETS installations in Malta receive allocations of free allowances. A number of local aircraft operators also participate in the EU ETS for aviation.

No consolidated national instrument providing for CO2 taxation rules has been adopted in Malta, however, a number of taxation measures in the context of energy efficiency in the transport sector have been set up. The Motor Vehicles Registration and Licensing Act (Chapter 368 of the Laws of Malta) caters to the imposition of vehicle registration tax, under which taxation rates are based, amongst other things, on the age of the vehicle, the length of the vehicle and the level of CO2 emissions. In addition, as of the year 2018, electronic vehicles are exempt from registration tax and annual road license for a period of 5 years from the date of registration (Subsidiary Legislation 368.01 - the Exemption from Motor Vehicles Registration Tax Rules). Moreover, as explained under the 2017 National Energy Efficiency Action Plan for 2020 certain hybrid vehicles and motorcycles benefit from lower registration tax and annual circulation tax. 

Subsidiary legislation is in place transposing EU legislation relating to the geological storage of carbon dioxide (Directive 2009/31/EC). No carbon capture, transport or storage activities are operational in Malta at present.

Yes, a number of subsidy/support schemes exist in the context of renewable energy sources. Malta has transposed Directive 2009/28/EC on the promotion of the use of energy from renewable sources and this through Subsidiary Legislation 423.19 - Promotion of Energy from Renewable Sources Regulations. The National Energy and Climate Plan is the central policy framework instrument across the five dimensions of the Energy Union Governance Framework. The Maltese Government continually seeks to extend capital grant incentives and operating aids to encourage the deployment of renewable energy. The 2017 Renewable Energy Action Plan for 2020 indicates Malta’s measures for energy from renewable energy sources, as well as energy efficiency strategies and other measures including cooperation with the other Member States in joint projects, statistical transfers, joint support schemes as well as joint projects with third countries. In particular, in the context of renewable energy sources, Malta subsidy and similar support schemes are predominantly focusing on solar photovoltaics (PV), solar water heaters and biofuels.

The four main schemes established under the Renewable Energy Action Plan for 2020   include the feed-in tariff scheme, the PV grant scheme, the solar water heater scheme and the heat pump water heater scheme. As clearly explained in the National Energy and Climate Plan, in the context of solar PV support is provided through operating aid and also in the form of a grant on capital investment for households. As regards Solar Water Heaters a grant scheme exists covering up to 50% of eligible costs. 

Additional financial support and grant packages are also provided in the context of the electrification of transport within Malta. The support includes scrappage schemes, exemptions from registration fees, registration fees and annual road license fees. Reference is also made to the reply given to the question above. 

Reference is made to Malta’s Renewable Energy Action Plan for 2020, the National Energy and Climate Plan for 2030 and Subsidiary Legislation 545.16 on Energy Efficiency and Cogeneration Regulations. In the context of Directive 2010/31/EU Malta is committed to develop a long-term renovation strategy to support the renovation of the national stock of private and public residential and non-residential buildings. Malta has advised that it shall be submitting its long-term renovation strategy indicating its milestones by 10 March 2020. 

In this context reference is made to Malta’s Renewable Energy Action Plan for 2020, the National Energy and Climate Plan for 2030 and Subsidiary Legislation 545.16 on Energy Efficiency and Cogeneration Regulations. Additionally, Transport Malta has identified a number of measures aimed at addressing energy efficiency in transport and has developed the 2025 Transport Malta Master Plan. The Transport Malta Master Plan looks at transport holistically and aims to identify the issues Malta is expected to face in the short to long term future. In the context of Transport additional national measures were adopted in the form of Malta’s National Electromobility Action Plan of 2013 and the Air Quality Action Plan for proposed traffic measures in line with Directive 1996/62/EC. The National Electromobility Action Plan is aimed at ensuring environmental sustainability in the context of land transport, whereas the Air Quality Action Plan proposes traffic measures for plans and programs aimed at addressing areas where air quality concentrations for the regulated pollutants exceed EU limit values. 
 

Reference is made to Malta’s Renewable Energy Action Plan for 2020, the National Energy and Climate Plan for 2030 and Subsidiary Legislation 545.16 on Energy Efficiency and Cogeneration Regulations. In the context of the industrial and services sector reference is also made to the Energy Efficiency Partnership Initiative (EEPI) aimed at encouraging organizations to implement measures to increase energy efficiency on an annual basis. Additionally, reference is also made to the Investment Aid for Energy Efficiency Malta Enterprise which is aimed at attracting investments in projects to improve energy efficiency. 

In this context reference is made to Malta’s Renewable Energy Action Plan for 2020, the National Energy and Climate Plan for 2030 and Subsidiary Legislation 545.16 on Energy Efficiency and Cogeneration Regulations. In agriculture, the National Agriculture Policy for the Maltese Islands (2018-2028) creates a vision for the relevant stakeholders in the sector and sets out a number of policy measures categorized in four – economic objectives; social regeneration; resources and governance. In tandem with the said Policy is the plan on Agricultural Waste Management in the Maltese Islands (2015-2030) which directs the management of agricultural waste in Malta. 
As regards land use, reference is also made to the Regulation on the inclusion of greenhouse gas emissions and removals from land use, land-use change and forestry (LULUCF) into 2030 climate and energy framework (Regulation (EU) 2018/841) of the European Parliament and of the Council of 30 May 2018). Being a Member State of EU, this Regulation is directly applicable in Malta, and therefore Malta is obliged to ensure that greenhouse gas emissions from land use, land-use change or forestry are offset by an equivalent CO2removal from the atmosphere between 2021 and 2030. 

In this context reference is made to Malta’s National Energy Efficiency Action Plan, the National Energy and Climate Plan for 2030 and Subsidiary Legislation 545.16 on Energy Efficiency and Cogeneration Regulations. Reference is also made to Malta’s Energy Policy published in 2012 wherein one of the main objectives was that of achieving a degree of interconnection for electricity supply with priority being given to the introduction of LNG as fuel for power generation thereby upgrading the electricity production infrastructure. As explained in the National Energy and Climate Plan for 2030, as regards the electricity production sector, policies and measures are driven by the delivery of the gas pipeline project and the focus on increasing the flexibility of the energy system and ensuring that vulnerable and energy-poor consumers are protected. 

Sustainable finance has become a very popular topic, raising awareness within the new generations. In 2019, EU Regulation 2019/2088 was adopted on sustainabilityâ€related disclosures in the financial services sector therefore binding certain financial market participants to certain sustainability disclosures aimed at reaching the obligations outlined in the Paris Agreement.

The regulations requires financial actors to consider two main issues:

• disclosure of the principal adverse sustainability impacts (doing harm); and
• quantification of the beneficial investment results.

Financial products are to be classified as either:

• a sustainable investment;
• a partially sustainable investment; or
• neither, in which case disclosure on the sustainability risks and possible impact to financial returns should be disclosed.

Furthermore, in support of Malta’s and the European Union’s commitments to the promotion of sustainable finance and investments, the Malta Stock Exchange (the “MSE”) announced that the Malta Financial Services Authority (the “MFSA”) has approved the Bye-Laws for the establishment of an MSE Green Market.

The Green Market will serve for the listing of Green Bonds on the local capital markets. Issuers seeking to raise finance for green projects must meet the MSE’s Green List criteria (based on the International Capital Markets Association’s Green Bond Principles). Issuers meeting these requirements will qualify for discounted listing fees. Qualifying issuers would need to invest in projects that contribute towards one of the environmental objectives inter alia: climate change mitigation, climate change adaptation, reduction of GHG emissions, pollution prevention, sustainable use of water and marine resources.

Most litigious matters in the context of climate change relate to pollution incidents and objections filed by individuals or NGOs to developments taking place in certain pristine areas within Malta and Gozo. 

An important case in the context of juridical interest in environmental matters was the Ramblers Association of Malta vs MEPA et (Court of appeal, 27 May 2017, court application number 228/2010). In this lawsuit, the nongovernmental organization (NGO) Ramblers Association of Malta (the NGO) brought an action against the Malta Environment and Planning Authority (MEPA) requesting the Court to order the annulment of a permit granted by MEPA allowing a certain development to take place in a pristine site which, according to the NGO, deserved protection. This is now a landmark judgment and although the Plaintiff was ultimately deemed to have the requisite juridical interest to file the suit, an examination of the case serves to highlight the difficulties that NGOs and other non-profit making or voluntary organizations may face in Malta when instituting an action in circumstances where they cannot demonstrate to a court of law an immediate, real, personal and direct interest in that action.

The answers above provide a very comprehensive overview of the local policy framework and climate-related legislation. No additional information is warranted.