Government aiming to ban importation of petrol and diesel cars by 2034 – Miriam Dalli

Malta is aiming to phase out the sale of new internal combustion engine vehicles by 2034, a year ahead of the European Union’s 2035 deadline, Environment Minister Miriam Dalli told this newsroom.

In comments to this newspaper, Dalli said that even though the Maltese government has reduced financial grants for battery electric vehicles (BEVs), the country maintains one of the highest incentives in the EU.

“We are giving amongst the highest grants when it comes to battery electric vehicles,” Miriam Dalli stated. She acknowledged the reduction which was announced in the last Budget, but highlighted how Malta’s grant scheme remains higher compared to other EU countries, where incentives have dropped to as low as €3,000.

The government introduced EV grants as part of the 2021 Green Paper on cleaner transport, which aimed to encourage the transition to zero-emission vehicles. Initially, grants reached up to €12,000 for individuals scrapping old vehicles in favour of electric models. However, recent budget adjustments have reduced these incentives to €8,000.

Despite this, electric vehicles remain more expensive than petrol and diesel cars. Dalli acknowledged that financial support is still needed. “Grants are still needed if we want to make that shift,” she said. “Unless we arrive at a situation where the European market achieves price parity between battery and electric vehicles and internal combustion engines, grants will continue to be helpful.

Malta is aligning itself with the EU’s goal to phase out internal combustion engine (ICE) vehicles. The European Parliament approved a 2035 ban on new petrol and diesel car sales in 2023, although some countries are implementing the ban earlier.

Norway is the first country in Europe to be implementing this, with a ban on new petrol and diesel cars being sold expected to come into place at some point this year. Other countries such as The Netherlands and Ireland are aiming for 2030.

Malta is also among those aiming for an earlier transition. “There is also an electoral manifesto promise that we are looking ahead at banning ICE vehicles by 2034,” Dalli said. “Now obviously, if at the EU level there is the decision to ban ICE vehicles by 2035, we would need to align our position.”

Malta faces challenges in meeting its 2034 target, including issues related to vehicle supply. As a left-hand driving country, Malta has fewer options for electric vehicles than other EU nations. “I still believe that 2034 would be doable, subject to supply of battery electric vehicles or zero-emission vehicles across Europe,” Dalli said.

The government has yet to outline whether further incentives will be introduced to support the transition. While electric vehicles are cheaper to run, their high upfront costs, limited charging infrastructure, and supply chain issues remain key concerns.

Dalli said that the transition may also include new technologies beyond battery-powered cars. “I am sure that there will be other technologies as we go forward that can help us have this transition in a more successful manner.”

Part of the government’s commitments to the switchover to electric vehicles is the installation of public charging points.  The Labour Party has pledged to build 6,500 charging points by 2030.

Last October, Dalli told Parliament that the number of charging points in the country will increase to 1,572 by the end of this year.

But with grant reductions and rising costs, it remains to be seen how Malta will ensure electric vehicles remain accessible while working towards its 2034 target.