EUROPEAN INVESTMENT BANK
Malta: The Central Bank of Malta and the EIB co-host a conference entitled ‘EIB investment towards the green, digital and energy transition in small states

The Central Bank of Malta and European Investment Bank Co-Host a Conference entitled 'EIB investment towards the green, digital and energy transition in small states.'

The Central Bank of Malta (CBM), together with the European Investment Bank (EIB), co-hosted a conference entitled EIB Investment towards the green, digital and energy transition in small states', held on Friday 15 March 2024 at the Central Bank of Malta in Valletta. The conference focused on the financing of the triple transition in small states: how best to finance the green, digital, and energy transitions, focusing on the peculiar challenges faced by small states.

The Central Bank of Malta Governor, Professor Edward Scicluna opened the conference. He was followed by an address from the European Investment Bank's Vice-President, Gelsomina Vigliotti, who remarked: "Small Island states bear the brunt of climate change's impacts, facing disproportionate challenges and threats." As the EU Climate Bank, the EIB is fully committed to aiding Malta in reducing its vulnerability to climate shifts by backing projects that contribute to curbing pollution, promote energy efficiency, and drive the development of disruptive technologies crucial for fostering a sustainable economy." The Minister for Energy, Environment and Regeneration of the Grand Harbour, Miriam Dalli delivered the keynote speech.

In her keynote address, Minister Miriam Dalli emphasized that the triple transition comprising the green, digital, and energy transformations is a set of objectives guiding us towards sustainability, innovation, and resilience. "The green transition, the digital transition, and the energy transition will enable Malta to pave the way for a better economy, society, and environment for our generation and those who come after us. Malta is fully committed to this transition not solely due to international obligations but also because this government has consciously chosen to lead this change," stated Minister Dalli.

EIB Chief Economist, Debora Revoltella, presented the main results from the latest Investment Survey of the EU Bank. The survey offers unique insights on the corporate investment landscape, in particular in regards to firms' investment priorities and the constraints they face. "This year's edition highlights that Maltese businesses are increasingly aware of the challenges posed by climate change and energy shocks and are taking proactive measures in response. There is visible progress in the adoption of advanced digital technologies such as digital platforms, drones, and big data/AI too. However, there is scope for further investment in energy efficiency measures and for supporting the development of climate adaptation strategies which, alongside addressing skill shortages, would enhance the development of green investments. Prioritising access to finance and deploying catalytic instruments can play a pivotal role in transforming the economy and boosting competitiveness."

CBM economists, Warren Deguara and Erica Brincat, from the Economic Analysis Department, presented for the first time some of the results of a new survey that the Bank has conducted amongst NFCs. The survey seeks to assess Maltese firms' awareness of issues surrounding the impact of climate change and the risks this poses for their activity. The survey also delves into the possible impact that mitigation policies may have on local firm operations, as well as the investment both in physical and human capital that will be required to aid in transitioning towards carbon neutrality. The survey shows that firms believe that the general environmental awareness in Malta still needs to improve. However, most firms agree that climate change and related mitigation policies will accelerate the take up of new and cleaner technologies.

A panel discussion chaired by the Malta Council for Economic and Social Development (MCESD) Chairperson David Xuereb entitled 'Financing of the transitions - opportunities and challenges of Malta' followed. The panelists included Gilles Badot, Director, EIB Adriatic Sea Department; Carlos Maravall Rodriquez, Country coordinator for Malta; Paul Azzopardi, Chief Executive Officer, Malta Development Bank; Marcel Cassar, Chief Executive Officer of APS Bank and Chairman for the Malta Bankers Association (MBA); and Marthese Portelli, Chief Executive Officer of The Malta Chamber. 

Commenting on the conference, Professor Scicluna stated: "The potential of small states in contributing to global challenges is large thanks to their faster transformative potential. Cooperation with international institutions and other countries is however essential to yield results that can be replicated elsewhere, at a scale."

• A recording of the conference will be available shortly.
• The EIB Investment Survey - Malta overview - is available here.

The EIB finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs).