This year will be remembered as the year for the largest ever package of transport financial grants awarded through Transport Malta.

It is evident that road transport is the major contributor to air pollution, specifically the emission of air pollutants directly associated with road traffic.

The reduction of emissions from road transport necessarily involves a suite of measures tackling both demand and supply, such as: reducing the need for road-based travelling within the Maltese territory, shifting mobility to alternative modes of transport and shifting road-based mobility to mass transport, and also alternative technological solutions to the current internal combustion engine (ICE) system. No one measure would be enough by itself.

The government recognises that measures need to be implemented as of today in order to reduce these emissions, and since 2013, Transport Malta has been identifying a number of measures that had to be implemented.

In this regard, Transport Malta has launched various packages of incentives, including cash grants to promote the uptake of electric vehicles. One also needs to keep in mind that these grants being offered are on the higher end when compared to other European countries.

The measures in place have been increasing year on year. Grants of between €1,000 and €13,000 are available for the acquisition of electric vehicles when de-registering an older conventionally fuelled vehicle (depending on the category of electric vehicle) and registering a new or used electric vehicle. Incentives have been provided both for private individuals as well as for registered companies and partnerships, local councils, registered NGOs, self-employed individuals, and cooperatives.

Electric vehicles do not pay registration tax and are exempt from paying the annual licence fee for the first five years. Companies can avail themselves of up to €200,000 in cash grants. Electric vehicles are not charged for entry in Valletta (no CVA charges) and can charge for free in government solar car ports.

Substantial financing of various kinds will also be needed to invest in infrastructure and the maintenance and operation of EV charging networks, fleet renewal and maintenance, public awareness, and communication campaigns.

These financial incentives being offered to Maltese families are being provided in order to make use of more sustainable and efficient means of transport. It is worth recalling that this government is working hard on the subject of alternative transport, not only on the basis of these financial measures, but also through incentives that we have taken and are still taking, including free public transport for many sectors in society, the liberalisation of the fast ferry service for the greater use of shipping, and also the start of a direct route by sea and public transport between Cospicua and Tas-Sliema.

Working hard on the subject of alternative transport

These schemes are a demonstration of an environmentally-friendly government, one that is committed to continue making a difference in order to achieve its main goal as well as maintain European commitments. These grants will not force the general public to buy a new car, but they will lead and serve as an incentive to purchase newer and cleaner vehicles.

A total of five grants have been issued, which can be accessed and applied for from the Transport Malta website.

The five grants are based on schemes which include:

Grant No. 1

- Incentive scheme to enable the public to change their car engines to have more vehicles running on autogas.

Budget allocated: €50,000 with a total of 160 vehicles converted to run on Autogas by the end of October 2021.

This measure will see to it that emissions from road traffic are reduced. With this measure, a person can benefit from a grant of €400 per vehicle in category M1 or N1 which is modified to be able to run on Autogas. Persons who have modified their vehicle to run on Autogas in previous years can apply for the scheme and benefit also from a 10 per cent reduction from the annual circulation licence.

- Scheme to incentivise the use of dual fuel systems on heavy duty diesel vehicles.

Budget allocated: €200,000 with a total of eight vehicle conversions by the end of October 2021.

Another measure to reduce emissions from road traffic: a person can benefit from a grant of €800 when a heavy-duty motor vehicle is equipped with this system which results in a reduction in smoke emissions of at least 25 per cent. Vehicle owners will also benefit from a 10 per cent reduction from the annual circulation licence.

Grant No. 2

- Scheme to incentivise the purchase of environmentally friendly vehicles.

Budget allocated: €1.5m with a total of 1,033 vehicles registered by the end of October 2021.

The purchase of new M1 vehicles that are environmentally friendly and the simultaneous elimination of old vehicles from the road is being encouraged. The grant amounts to a maximum of €1,500 awarded when purchasing a new vehicle in category M1 and a grant of € 2,000 when purchasing a new hybrid vehicle in category M1, while cancelling the registration of an old vehicle in category M1 or N1.

Grant No. 3

- A scheme to incentivise the scrapping of an old vehicle and the purchase of an electric vehicle or a plug-in hybrid for individuals, local councils, NGOs, and businesses.

Budget allocated: €4.6m with a total of 646 vehicles registered by the end of October 2021.

In the case of private individuals:

• €12,000 when registering a new electric vehicle falling under Category M1 or N1 while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture.

• To qualify for a further €1,000 the vehicle owner must register a NEW electric vehicle and scrap a motor vehicle (M1 or N1 Category) which is registered in his name in Gozo, is 10 years or older prior to the year appearing on the application for the grant, and which was already registered, garaged, or licensed with Transport Malta in their name prior to October 11, 2021.

• €11,000 when registering a new electric vehicle falling under category M1 or N1 without de-registering and scrapping an older ICE vehicle;

• €5,000 when registering a used electric vehicle falling under categories M1 or N1 that is not older than six months from date of first registration and does not exceed 6,000km on the odometer, while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €4,000 when registering a used electric vehicle falling under categories M1 or N1 that is not older than six months from date of first registration and does not exceed 6,000km on the odometer, without de-registering and scrapping another ICE vehicle;

• €3,000 when registering a used electric vehicle falling under categories M1 or N1 that is not older than 36 months from date of first registration and does not exceed 15,000km on the odometer, while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €2,000 when registering a used electric vehicle falling under categories M1 or N1 that is not older than 36 months from date of first registration and does not exceed 15,000km on the odometer without de-registering and scrapping another ICE vehicle;

• €1,000 when registering a used electric vehicle falling under categories M1 or N1 that is older than 36 months but not exceeding 72 months from the date of first registration.

In the case of local councils, NGOs, registered businesses, and registered private companies:

• €12,000 when registering a new electric vehicle falling under category M1 while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €11,000 when registering a new electric vehicle falling under category M1 without de-registering and scrapping another ICE vehicle;

• €12,000 when registering a new electric vehicle falling under category N1, N2, M2, or M3 and de-registering and scrapping another conventional M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €11,000 when registering a new electric vehicle falling under the Category N1, N2, M2, or M3 without de-registering and scrapping another ICE vehicle;

• €5,000 when registering a used electric vehicle falling under categories M1, N1, or N2 that is not older than six months from date of first registration and does not exceed 6,000km on the odometer, while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €4,000 when registering a used electric vehicle falling under categories M1, N1, or N2 that is not older than six months from date of first registration and does not exceed 6,000km on the odometer, without de-registering and scrapping another ICE vehicle;

• €3,000 when registering a used electric vehicle falling under categories M1, N1, or N2 that is not older than 36 months from date of first registration and does not exceed 15,000km on the odometer, while de-registering and scrapping another M1, M2, N1, or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• €2,000 when registering a used electric vehicle falling under categories M1, N1, or N2 that is not older than 36 months from date of first registration and does not exceed 15,000km on the odometer, without de-registering and scrapping another M1, M2, N1 or N2 ICE vehicle;

• €1,000 when registering a used electric vehicle falling under categories M1, N1, or N2 that is older than 36 months but not exceeding 72 months from the date of first registration.

A demonstration of an environmentally- friendly government

Grant No. 4

- A scheme which covers the purchase of Pedelecs and Vehicles in Category L.

Budget allocated: €2.5 Million with a total of 1,674 motorcycles and 275 pedelecs registered by the end of October 2021.

In this scheme, two types of grants are being offered: Grant A and Grant B. An ‘Applicant’ here refers to either the person, local council, voluntary organisation, or enterprise.

Grant B:

• €1,000 when a person registering a pedelec or a new category L vehicle eligible for grant A removes from registration a vehicle in Category M1 or N1 that is at least ten years old from the year of its manufacture; or

• €500 when a person registering a pedelec or a new category L vehicle eligible for grant A removes from registration a Category L vehicle that is at least ten years old from the year of its manufacture.

Grant No. 5 - Purchase of vehicles that are accessible by wheelchair for individuals with disabilities

This scheme is open to vehicles used for the rental or compensation of passengers. For this measure, a person can benefit from a grant amounting to € 10,000 when they license a new vehicle in category M1, M2, or M3.

Budget allocated: €300,000 with a total of 19 wheelchair accessible vehicles registered by the end of October 2021.

Gilbert Agius is Deputy Chief Officer, Transport Malta

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