Malta Maritime Forum welcomes cross-party call for island clause in EU climate laws

The Malta Maritime Forum (MMF) has welcomed a joint cross-party initiative by PL MEP Thomas Bajada and PN MEP Peter Agius aimed at mitigating the impact of EU climate legislation on Malta.  

Dr Bajada and Dr Agius have joined Italian and Cypriot MEPs to call on the European Commission to introduce an “island clause” in the EU Emissions Trading System (ETS).

Launched last year to cover the costs of CO2 emissions from large vessels, the ETS has been described by the Association of Tractor and Trailer Operators (ATTO) as a “tax” on island states, one which will ultimately be passed on to consumers.

According to ATTO’s calculations, a single round trip between the Port of Genoa and Malta now carries a €734 charge in ETS alone, over and above freight, loading and discharging costs.

View this post on Instagram

A post shared by WhosWho.mt (@whoswho.mt)

“In the context of strong political divisions at both the local and European levels, this cross-party collaboration — bridging political parties and groupings in the European Parliament and uniting representatives from island regions across Europe — demonstrates a commendable commitment to placing the national interest above partisan politics,” the Malta Maritime Forum said.

“The Forum strongly believes that such unity is essential when addressing matters of strategic importance to Malta’s connectivity and overall economic sustainability.”

It pointed out that Malta depends on maritime connectivity for its economic survival and that trade, tourism, fuel supplies and general cost of living are inextricably linked to efficient and affordable maritime transport.

“The current application of the EU Emission Trading Scheme to maritime transport, while well-intentioned in its climate objectives, is disproportionately impacting island economies,” the MMF said. 

“Serious flaws in the design and implementation of the ETS regime have brought about prohibitive unfair competitive conditions for ports located within the EU in the face of growing and aggressive competition from new and expanded transhipment hubs in nearby non-EU jurisdictions that are not subject to equal regulatory burdens.” 

“This predicament continues to place Malta’s global shipping connections and consequent economic competitiveness, at serious risk.”

The MMF proposed extending the current exemption for minor islands to include all island states, excluding EU transhipment ports from the definition of “port of call” to prevent carbon leakage and traffic diversion to non-EU hubs, and excluding short-sea Ro-Ro and passenger services that are part of intermodal operations to safeguard essential lifeline connections.