Friends of the Earth Malta welcomes the funds allocated in the Budget 2009 for environmental projects and alternative energy. However Friends of the Earth Malta (FoE Malta) states that the rebates for solar panels and the insulation of roofs and windows are too limited to be considered as a fair initiative to reduce CO2 emissions on a national scale. Incentives to empower the citizen to invest in energy efficient appliances need to be further extended to society at large in parallel with a national initiative to install solar water heaters and solar panels on the roofs of state run and funded authorities and entities such as offices, clinics, hospital, schools and ministries. A holistic initiative such as the one illustrated here would not only genuinely reduce Malta's CO2 emissions drastically but would also permit more research into the resulting efficiency of solar panels on a local and national level.

In the approach to rebates of all sorts there is no indication as to what full use of a particular rebate will be given to the customer. For instance, spending €900 – of which €300 are discounted – on roof or wall insulation will have a significant effect; the same sum spent on double-glazing will yield much less as double glazing is expensive. The incentives for the purchase of solar panels are limited to only €500,000. Only 170 families can claim the maximum reimbursement of €3,000, which will accompany a purchase of a 1kW system. This is the result of a deliberate decision to extend help principally to industries in the belief that such entities will install a far greater PV capacity than families will. Industries are promised a rebate of 60% (without ceiling) of the overall cost of a PV system. The rebates on solar water heaters, designed to reach 4,500 families shows a more significant incentive in the direction of reducing CO2 emissions from the domestic sector.

FoE Malta finds the allocation of offshore wind turbines very encouraging, however since the government's budget also mentioned wind turbines on land for the first time, FoE Malta affirms that it would be more logical and cost-effective to erect land-based wind turbines before attempting an offshore project since land-based wind turbines can be deployed faster and cheaper.

FoE Malta is surprised that no mention was made to feed-in tariffs. No change has been made to feed-in tariffs, the rate at which Enemalta buys renewably generated electricity via net metering or bartering. As experience in other countries has shown, an attractive feed-in rate exerts a powerful incentive where the consumer can see quite clearly that it is putting money in their pocket. On the other hand, capital subsidies tend to be mopped up by the distributors.

On the subject of tariffs, FoE Malta is aware that we have failed once more to adopt a sensible version of different day and night rates, in order to encourage heavy users to move electricity use away from times of peak demand. The difference in the rates is too small to be of interest.

FoE Malta believes that the rebate on energy-saving bulbs is a step forward to partly make up for the fact that the previous scheme for rebates on energy efficient appliances was removed earlier this year. Although the increase on eco tax for incandescent bulbs is an anomaly since recently there was a decision by EU Energy Ministers for a ban which will apply to the whole of the EU market from 2010.  The so-called eco taxes on incandescent bulbs, plastic bags, fliers and magazines are in fact revenue raising measures. Still, they are a welcome incentive to encourage the general public to move to a mind set which favours a positive environmental conscience.

FoE Malta states that a 15.25% rebate for the purchase on one bicycle will not have the desired effect of a reduction of CO2 emissions from vehicles. The occasional cycle lane does not ensure the desired security standards for cyclists and does not encourage cyclists to take to our roads. Strangely enough the taxes presented in this budget make keeping your old car of an engine size less than 1300cc cheaper tax-wise than having a new car of the same engine size. For example: For an 18 year old car under 1300cc you must pay 101 euros. While for a new car that emits only 100g/km you pay 100 euros and if your car emits more than 250g/km you pay 600euros. This is at year zero and will remain so for the next 5 years before taxes start increasing gradually. A true green incentive would have been to reduce taxes or remove taxes completely for electric vehicles, hybrid vehicles and vehicles with a low emissions output.

The mention of future developments in yacht marinas without a clear description of what these developments may be, is of concern since this could mean more loss of public swimming areas and shoreline, and possible environmental degradation. Tourism being a pillar of our economy, FoE Malta was surprised not to hear the mention of eco-tourism and agro-tourism projects in future plans. Malta does have local products and traditional crafts to display to tourists and the Maltese population. FoE Malta urges the government to give a clear guide in this direction to the €23 million allocated to the Malta Tourism Authority.

FoE Malta welcomes environmental audits for businesses. This is clearly the way forward for a business to increase its success and take action towards its social and environmental responsibilities. In addition the incentive for local councils to work more efficiently towards the environment by promoting a financial reward is a clear indicator for future progress on a grassroots level to reach out towards creating positive change for the environment.

Friends of the Earth Malta states that it is encouraged by the inclusion of environmental friendly incentives in this Budget which may bring about some positive change to the environment, and looks forward to contributing to and seeing positive change in action.