The International Monetary Fund has confirmed Malta’s commitment to sustainable development through policy initiatives and investments to strengthen its services infrastructure.
The report, published yesterday, reviews Malta against a backdrop of a robust economic trajectory, the government said in a statement Wednesday.
The IMF highlighted the positive advancements in the energy, water and waste sectors and notes the direct challenges that arise from rising temperatures. It confirms that Malta has enough power capacity to meet its current demand whilst investments are underway to prepare for future needs. The second interconnector project is well underway. In parallel, tenders for the design and construction of two large-scale Battery Energy Storage Systems (BESS) have been launched. Between 2021 and 2024, over 1,400 households benefited from around €6.5 million to install nearly 13MWh of domestic battery storage.
The Energy Ministry has also launched a public call to businesses interested in building Malta’s first offshore wind farm.
The report sheds light on Malta’s vulnerability to climate change due to rising temperatures and geographical size. Similarly, it acknowledges the significant potential opportunity for offshore wind farms. This could reduce reliance on imported electricity and fossil fuels.
Modernising the services infrastructures is not limited to capacity but can also future-proof Malta’s systems. This includes the waste-to-energy plant. A project, which holds significant national importance.
“It is extremely positive that the government’s proactive measures, such as the investments in the network distribution system, innovative projects supporting renewable energy, the 10-year water National Investment Plan and waste management strategies have been acknowledged by the IMF as demonstrating a clear commitment to sustainable development,” Minister for the Environment, Energy and Public Cleanliness Miriam Dalli said.
The Minister noted that policy initiatives undertaken are bearing fruit. The IMF report reflects on the growth of Malta’s fleet of electric vehicles and the increase in use of circular material. The use of circular material reached 15%, one of the highest rates in the EU. The IMF report notes that Malta has reduced waste generation per capita (by households and service industries) whilst landfill usage has remained broadly unchanged, with incineration and recycling picking up.
Climate impact has, however, driven higher energy demand and stress on water resources. Through the Water Services Corporation, a €66 million investment by 2027 is planned to upgrade the Gozo, Malta North and Malta South wastewater treatment and sludge management facilities. This forms part of the national investment plan, worth €310 million, endorsed by the European Commission.
The IMF report stresses Malta is the first EU Member State to have its entire population connected to wastewater treatment plants.
The WSC is envisaging a move to disconnect farmyard waste from the urban wastewater collection network, to restore the full operational capacity of the current wastewater treatment infrastructure, which is the key reason behind the untreated wastewater component resulting from organic overloading. The WSC is also working on measures to curb seawater infiltration and stormwater runoff intrusion. Meanwhile, desalination capacity is increasing whilst system losses have reduced significantly to record EU figures.
