European Regional Development Fund, Cohesion Fund, Just Transition Fund

The ERDF, CF and JTF funds provide an opportunity for Malta to invest in a number of areas, including research and innovation (R&I), competitiveness and digitalisation, natural resources and the environment, transport, education, employment, health, tourism and urban development, which are of significant importance in the socioeconomic development of the country. This programme covers a total budget (EU + MT contribution) of around €994 million th​at will support a new wave of initiatives towards further development in terms of competitiveness, environmental preservation and social cohesion as well as to continue to address the recovery from the COVID-19 pandemic. The Programme will focus on the following priorities to support investments in line with the priorities identified under different national policies:

• ERDF: A more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity;
•  ERDF: Promoting clean and fair energy transition, sustainable wastewater management and green investment;
• CF: Promoting sustainable water management, a circular and resource efficient economy;
• CF: Sustainable urban mobility;
• CF: A more connected Europe by enhancing mobility;
•  ERDF: A more social and inclusive Europe implementing the European Pillar of Social Rights;
• ERDF: A Europe closer to citizens by fostering the sustainable and integrated development of  all type of territories and local initiatives;
• Just Transition.

One of the projects of strategic importance is the development of a second electricity interconnector, with an allocated budget of € 165 million. This investment aims to address Malta’s needs in relation to improving its energy grid resilience, security of supply and grid stability, while also considering projections for energy demand. The second interconnector is foreseen to lead to a lower long-term cost of electricity, lower carbon emissions and better security of supply and is foreseen to have a capacity of 200MW.

Another strategically important project is the provision of an onshore power supply, at the Valletta Grand Harbour and at the Malta Freeport, with an allocated budget of € 33 million. Investment will entail the connection of vessels to onshore electricity power supply whilst berthing which will therefore no longer require vessels to use their auxiliary engines, thus reducing emissions generated into the air and noise pollution.

The Programme will build on initiatives implemented under the previous programming periods and will serve as a renewed impetus for investments in line with the scope of the ERDF/CF/JTF Regulations and national ambitions. Resources will be mobilised to facilitate access to finance for enterprises including through grants and loans, in the areas of digitalisation, R&I, energy efficiency and the valorisation of cultural heritage and tourism, amongst others. Support will also focus on strengthening infrastructural development, such as through investments aimed to support business development, R&I, clean energy, waste and water management, health facilities including in mental health and paediatrics, educational institutions, and transport infrastructure. Initiatives supported through these Funds will also foster biodiversity protection and conservation, promote clean mobility and support green infrastructure, whilst the decarbonisation of ports and road transport will also play an important role in Malta’s transition towards climate neutrality. The Programme will address Gozo horizontally across the different priorities and will also support Gozo’s needs and opportunities for sustainable urban development in a targeted manner.

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