Bureaucracy, lack of insight into the ROI of energy efficiency measures could be hampering more companies from exploring funding grants for sustainability projects, says Gabby Grech Larsson from The Malta Chamber of Commerce, Enterprise and Industry who is currently spearheading the EENergy project in Malta.
SMEs have a crucial role in addressing climate change because their potential to influence environmental practices amongst people, local communities and other companies makes them stewards for sustainable change.
“Although the GHG emissions from an average EU-based SME are generally less in comparison to those of larger enterprises, the sheer size of the SME sector in European countries renders its collective contribution critical to overall emission reductions,” explains Gabby Grech Larsson.
“SMEs however also face hurdles such as time constraints, bureaucracy, lack of human resources and a lack of awareness about grants such as EENergy.”
EENergy is a project launched on February 2 of this year by Enterprise Europe Network (EEN) to offer direct financial support of up to €10,000 for energy efficiency measures to at least 900 eligible SMEs in its network.
The project aims to improve energy efficiency by at least five per cent through eligible actions covering investments, consultancy, or skills and training. The Malta Chamber of Commerce is part of EEN.
“The initial application deadline was set for April 15 and the initial feedback was very positive, but dissemination has yet to reach a larger number of companies. Luckily, the application deadline has now been extended until May 15.”
Grech Larsson explained how through EENergy, SMEs stand to gain reputational benefits, financial savings, efficient operations, and decreased risk exposure from sustainable business practices.
“Through this grant, SMEs can investigate their operational energy consumption by undertaking an inventory of energy usage and GHG emissions to find what energy efficiency solutions could contribute towards a reduction trajectory. By unlocking these long-term strategic improvements SMEs increase resilience to supply-side shocks and increase long-term sustainability and competitiveness.”
“Locally, many companies seem to be doing a lot of effort to operate more sustainably but there is a good number of other organisations that have not yet reached the required momentum for the transition,” adds Grech Larsson.
“Yes, there are many inspiring examples of local companies who are fully committed and are embracing their transition towards sustainable business practices and at The Malta Chamber we are constantly advocating in favour of this change and supporting companies with high-level guidance.”
Is it a case where unless grants are available, certain companies will not bother taking measures to operate more sustainably?
“Lack of insight into the ROI of energy efficiency projects may play an important role. But sustainability requires business decisions and concrete actions that go beyond initial limitations that may be stopping businesses from recognizing the opportunities there are.”
“To look beyond short-term financial gains, and create long-term value, businesses need to look at the feedback processes that string us together in one system - an analysis and assessment that requires both human and financial resources.”
Grech Larsson believes that by easing the bureaucratic burden, SMEs can be enticed to look more actively at these grants.
Currently several local companies are being assessed before their investments in HVAC, insulation, solar PV and energy management systems.
“EEN and the EENergy grant help SMEs overcome the initial complexities of a sustainability journey by tapping into the services provided by the local EEN sustainability advisor. Besides simplifying the information required to proceed with the application for energy efficiency improvements, the EENergy grant also covers skills and training costs.”
“This is a low-hanging opportunity for local SMEs that could result in large energy efficiency savings and The Malta Chamber of Commerce is here to help,” concludes Grech Larsson.
For more information on the EENergy, contact Gabby Grech Larsson at gabby.grechlarsson@maltachamber.org.mt