The Malta Maritime Forum has applauded the joint initiative undertaken by Maltese Members of the European Parliament Peter Agius and Thomas Bajada who recently called for the introduction of an “Island Clause” within the EU’s Emission Trading Scheme (ETS).
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 Forum strongly believes that such unity is essential when addressing matters of strategic importance to Malta’s connectivity and overall economic sustainability.
As an island state situated at the periphery of the EU, Malta depends fundamentally on maritime connectivity for its economic survival. Its 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. 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 Forum has consistently called for a comprehensive review of the EU ETS framework as applied to shipping. Not only are serious questions being raised about the scheme’s effectiveness in achieving its stated environmental objectives but its unintended consequences are placing peripheral island states at a structural disadvantage.
In this regard, the Malta Maritime Forum reiterates its concrete and constructive proposals aimed at safeguarding Malta’s maritime connectivity while respecting environmental ambitions. The Forum proposes to:
- Extend the existing derogation for minor islands to also include Island States, ensuring equal treatment and proportionality under EU law.
- Exclude EU transhipment ports from the definition of “port of call” under the EU ETS Directive in order to prevent carbon leakage and diversion of traffic to non-EU hubs.
- Exclude short sea shipping Ro-Ro and passenger connections forming part of intermodal or combined transport operations from the scope of the ETS Directive, thereby protecting essential lifeline services.
- Incorporate a forward-looking risk assessment mechanism based on predictive criteria into the ETS monitoring framework, allowing early identification and mitigation of connectivity risks.
The joint proposal for an “Island Clause,” by the Maltese MEPs highlights the European Commission’s
obligation to address the economic, social and territorial disadvantages faced by island regions. The forthcoming EU Strategies for Islands and Coastal Communities and for Maritime Industry and Ports present a timely opportunity to restore proportionality and fairness within the ETS regime.
The Malta Maritime Forum stands firmly behind this initiative and calls on the European Commission to act decisively in defence of Europe’s island states. The complementary objectives of climate action and economic sustainability must go hand in hand. Persistent risks to Malta’s maritime connectivity weaken the Islands’ resilience and future prosperity.
In March, a delegation from the MMF shall visit Brussels to make the necessary representations with the pertinent authorities, institutions and like-minded pan-European port and port-services associations.
