Every progression we make in the green economy moves us closer to a sustainable legacy. The celebration of Malta’s inaugural green bonds signifies more than just a successful financial endeavour; it symbolises our unwavering commitment to environmental stewardship.

The listing of the green bonds on the Malta Stock Exchange, achieved in record time, is not merely a nod to strong innovative spirit. It signals a nation’s collective will to pivot towards a more sustainable and digital future. Malta’s historical financial landscape, marred by inertia, has often seen enterprises hesitating to explore uncharted territories. But, as history has shown, once the pioneering step is taken, a cascade of enterprises follows suit. Our legacy with stocks and bonds stands testimony to this phenomenon.

Today, the Water Services Corporation has been that trailblazer, issuing Malta’s first green bonds. This move sends a powerful message to Maltese enterprises: the realm of green finance isn’t just feasible – it’s the future. This isn’t merely a financial endeavour; it’s a call to arms for every Maltese company and citizen. It’s our attempt to embed sustainability not just in our policies but also in our financial portfolios.

Remarkably, the bond’s success reso­nates with a wider audience. It’s heartening to see that the majority of bond investors were retail investors – our very own citizens. The overwhelming response, with the bonds oversubscribed in mere hours, is a testament to the collective environmental consciousness of the Maltese community. It highlights our shared aspiration for an economy that works in harmony with the environment.

Considering the €24 billion lying dormant in bank deposits, the potential to channel these resources towards environmental projects is immense. This latent financial power, if directed pro­perly, can revolutionise our environmental endeavours. The success of these green bonds, valued at €25 million, is just the tip of the iceberg. Together, with collaborative efforts from the private investment community, we can catalyse a more sustainable Malta.

Shifting gears to the technical realm, the Green Bond Framework stands as the Water Services Corporation’s blueprint for managing Malta’s water resources sustainably. It’s a testament to our strategic approach. With a commitment of €25 million, a maturity term of 10 years and an interest rate of 4.25%, the bond is a beacon of our dedication to global sustainability goals, including the UN’s Sustainable Development Goals and the EU’s Green Deal.

The realm of green finance isn’t just feasible – it’s the future

The WSC Green Bond aligns with the corporation’s three main pillars: water production and distribution, wastewater collection and treatment, and renewable energy generation. It’s not just about introducing new technologies; it’s about revolutionising our approach to these critical areas. The framework will fuel green projects, ranging from cutting-edge technology at the reverse osmosis plant in Gozo to investments in solar farms, wastewater treatments and enhancements to our water network. Ensuring the framework’s integrity, the corporation has enlisted Grant Thornton Ltd for verification. The commitment to transparency extends to annual reporting until the bond’s proceeds have been fully allocated. These reports will provide insights into the allocation, financing and impact indicators of the eligible green projects.

As we continue to champion these green initiatives, we encourage more businesses and individuals to join this journey. Malta’s sustainability efforts are not just a government or corporate responsibility; it’s a collective endeavour. We all have a very important role in all of this.

The success of Malta’s green bonds goes beyond our borders, influencing the global community. To harness this momentum, continuous dialogue between businesses, policymakers and individuals is vital. We envision a future where green initiatives are the norm, setting new standards for growth and preservation.

In this monumental stride, we remain steadfast in our vision for a sustainable Malta. While the waters of change are upon us, only together can we navigate towards a greener horizon.

Miriam Dalli is Minister of the Environment, Energy and Enterprise. Karl Cilia is CEO of Water Services Corporation.