MBB supports the ETS and its objectives, but ‘our concern is proportionality’

The Malta Business Bureau led a 19-strong business delegation to Brussels to engage with institutions, policymakers and decision-takers, over the Emissions Trading System (ETS), competitiveness, the blue economy and the newly published Sustainable Tourism Strategy.

During a policy roundtable for which Commission and EP officials were present, MBB CEO Mario Xuereb spoke about striking the right-balance between connectivity, competitiveness and the challenges brought about by climate change.

“Around 70 per cent of Malta’s imports arrive on the Italy to Malta line, so the maritime EU ETS reaches Maltese businesses and households through freight rates. MBB supports the ETS and its 2030 and 2040 objectives. Our concern is proportionality: on a route with no alternative mode, a full carbon charge cannot change behaviour, it can only raise prices.”

The ETS is the European Union’s carbon pricing mechanism, which places a cost on emissions from shipping, aviation and other sectors.

Policy Advisor Nigel Caruana listed the MBB’s recommendations on ETS.

These include a 50 per cent ETS derogation with no end date for ro-ro cargo ships, ro-pax ships and container ships travelling between a port in a member state and a port on an island in a member state with a surface area of less than 10,000 km² and no road or rail link to the mainland.

They also include charging only for the cargo actually carried on the empty return leg; Keeping the transhipment safeguards at a 50 per cent threshold and the 150 nautical mile rule to protect the Malta Freeport against nearby North African hubs; Providing free allowances covering 50 per cent of the ETS surrender obligations for eligible flights to and from islands below 10,000 km² with no fixed road or rail link; And strengthening support for sustainable aviation fuel.

MBB Vice President Sergio Vella said that lessons learnt by Maltese industry in lobbying and advocacy efforts have fuelled and driven the organisation’s efforts to reach out as early as possible to influence policy proposals. He said the MBB keeps monitoring and pushing for resolution of issues in favour of Maltese business and industry at various stages and different levels of the policy-making process.

On the blue economy, MBB Policy Executive Juliette Mizzi also presented recommendations which include the appointment of an EU Blue Economy Envoy, further cooperation on youth and skills development through Global Gateway; the mobilisation of investment and EU funding in EU port electrification, sustainable maritime fuels and water and energy resilience amongst others.

The delegation also engaged in a Q&A session with Maltese MEPs Alex Agius Saliba, Peter Agius, Daniel Attard and Thomas Bajada. Over the past months MBB engaged with MEPs to propose amendments to the ETS reform proposal put forward by the European Commission earlier this year. M Xuereb thanked them for keeping an open channel of communication throughout.