Yesterday in Parliament, Prime Minister Robert Abela thanked Italy, Greece and Cyprus for opposing the EU’s proposed changes to the Emissions Trading System (ETS) as it applies to shipping.
The EU ETS requires shipping companies operating large vessels to purchase and surrender emissions allowances to cover their greenhouse gas emissions. The system aims to reduce pollution by putting a price on carbon emissions, encouraging the shipping industry to improve energy efficiency and transition towards lower-carbon fuels. The obligations have been phased in, reaching 100% of covered emissions in 2026.
However, the Prime Minister stressed that viable alternative fuels for shipping are not yet sufficiently available, raising concerns about the practical implications of imposing additional costs on the industry before the transition can be fully achieved.
The Prime Minister also warned that the system could drive ships away from Malta’s bunkering services towards competitors in North Africa, putting the country’s maritime industry at a disadvantage.
He also said he met with a member of the family-owners of Mediterranean Shipping Cruises representatives at his office to discuss the issue.
Foreign Affairs Minister Chris Fearne has described the impact of the ETS on Malta as an “existential” threat, given the country’s dependence on maritime transport for connectivity and the importation of essential goods.
The Prime Minister said the EU would be reforming its proposals in response to these concerns.
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