MDB wants to play a ‘major role’ in Malta’s move to a ‘low-carbon and climate-resilient economy’ – CEO

Malta Development Bank (MDB) CEO Paul V. Azzopardi has affirmed that the bank will play a key role in helping Malta’s economy to transition into a more sustainable one.

His comments came as the MDB and the European Investment Bank (EIB) kicked off an extensive collaboration project aimed at enhancing the ability of the MDB to support the Maltese economy and businesses in accelerating the green transition in Malta. The bank aims to do so by financing environmentally sustainable projects which contribute to addressing climate change.

The first meeting between the two sides was held over the past days at the MDB premises in Floriana. The MDB and EIB teams were led by Mr Azzopardi and EIB Senior Advisor Nikolaos Tritaris, respectively.

This collaboration is being facilitated through the Green Gateway advisory service, a joint project between the EIB and the European Commission. Through this backing, the MDB will enhance its ability to identify, support, finance, and report on the eligibility of green projects, including as an intermediary of the EIB, as well as aligning itself to these high standards. The advisory service will also seek to help the MDB to identify promising green market segments, client categories, and investment types.

“We are very grateful for the opportunity to expand our ability to support the Maltese economy to address the challenge of climate change,” Mr Azzopardi stated.

“We are therefore strengthening our ability to be leaders in making this change happen and to play a major role in financing the transition of the Maltese economy to a low-carbon and climate-resilient economy,” he added.

The Green Gateway project aims to pave the way for innovative financing solutions that drive positive environmental impact in the context of climate change.

The advisory collaboration ties up with a recent agreement signed with the EIB, though which the latter had agreed to provide MDB with a €30 million loan to finance small-scale green investments on favourable conditions.

In parallel to this, the advisory support will complement and build upon the MDB ESG Policy that was approved by the bank’s Board of Directors towards the end of 2023. The policy reflects the bank’s twin approach, ensuring full integration of ESG standards in its own operations, while also ensuring that third party projects financed through the MDB contribute to an “orderly transition to a sustainable economy and enhance social value.”