A delegation from the Malta Maritime Forum (MMF) travelled to Brussels to discuss the impact of the EU’s Emissions Trading System (ETS) with European institutions, industry associations and Maltese policymakers. The visit was intended to contribute to discussions ahead of the upcoming review of the Directive expected in July.
During the visit, the Forum presented data highlighting what it described as the negative repercussions of the ETS, including potential business and carbon leakage. It also discussed possible alternatives to the implementation of the system, while acknowledging the importance of the EU’s climate objectives.
Meetings were held with a number of stakeholders, including Glenn Micallef, European Commissioner, officials from European Commission Directorate-General for Climate Action, Malta’s Deputy Permanent Representative to the EU and Maritime Attaché, as well as representatives from the European Tugowners Association, European Maritime Pilots Association, European Sea Ports Organisation and the Federation of European Private Port Companies and Terminals.
The delegation also met Maltese Members of the European Parliament Peter Agius, Alex Agius Saliba, Thomas Bajada and Daniel Attard, as well as representatives from the offices of David Casa and Roberta Metsola.
While in Brussels, the Forum raised concerns about the unintended effects of the ETS, arguing that the system risks undermining its climate objectives due to the difficulty of enforcing rules beyond EU jurisdiction. According to the MMF, transhipment activity is increasingly shifting to expanding hubs along the North African coast, as cargo carriers reroute away from EU ports to avoid ETS requirements. This trend could risk reducing southern EU ports to feeder hubs playing a secondary role to non-EU ports where cargo is primarily transhipped.
The Forum said this development runs counter to the objectives of the European Commission’s new port strategy, noting that EU ports risk losing competitiveness while overall emissions remain unchanged. Data presented by the MMF indicated significant growth in non-EU ports at the expense of EU transhipment hubs, a shift that has led to increased feeder traffic and potentially higher overall emissions.
The Forum also highlighted the particular risks faced by small island economies such as Malta. With high ETS costs and relatively limited domestic container volumes, Malta risks losing direct calls from major shipping lines. If cargo destined for Malta is unloaded at neighbouring non-EU ports, this could affect the island’s connectivity and competitiveness, with implications for sectors such as manufacturing and logistics.
During its meetings, the Forum presented several recommendations to the European Commission. These include a temporary freeze on EU ETS and FuelEU measures for maritime transport until a global decarbonisation framework is established, clear assurances that EU measures would be withdrawn once a global system is in place, and the extension of derogations for small islands to major islands until 2035.
The MMF also proposed excluding EU transhipment ports—where transhipment exceeds 65 per cent of total activity—from the definition of “port of call” under the ETS Directive, excluding short sea shipping from the system until road transport ETS2 becomes operational, and introducing a risk-assessment mechanism for ETS monitoring.
The Forum thanked Malta’s MEPs for what it described as a constructive and non-partisan approach to the issue, and expressed appreciation for the support shown by Commissioner Micallef and European Parliament President Metsola.
Encouraged by the feedback received during the visit, the MMF said it plans to continue its advocacy efforts with further meetings in the coming weeks, urging EU policymakers to consider its recommendations in order to ensure a level playing field for European ports while advancing effective and coordinated maritime decarbonisation.
The MMF delegation consisted of Godwin Xerri, Chairman; Alex Montebello, Vice Chairman; Claudia Vella Casagrande, Director; and Kevin J Borg, CEO.
