Brussels proposes easing shipping levy that critics say hurts Malta

Updated 7.52pm

The European Commission has proposed revisions to the EU’s Emissions Trading System (ETS) that would ease costs for cargo transhipped through Malta and other EU ports.

The proposal, however, stops short of helping most Maltese businesses and consumers, who would continue paying the levy in full.

The commission on Friday proposed a raft of changes to the EU’s Emissions Trading System (ETS), a levy on emissions first introduced in 2005 to cover industrial and energy production and later expanded to include aviation and shipping.

Among the proposed changes, Brussels want to exclude long-distance transhipment cargo brought to EU ports on large container vessels if bound for ports outside the bloc.

Cargo bound for the EU – including goods imported for use in Malta itself- would still be taxed at the current rate and would not be affected by this exemption.

In a statement on Friday evening, the Energy Minister welcomed the stronger protection for Malta Freeport, continued support for air connectivity and recognition of island states’ realities.

Miriam Dalli said she was “satisfied” that the revised ETS proposal incorporates a number of key Maltese priorities.

“Climate action must be fair. Island states cannot be expected to carry disproportionate costs simply because of their geography,” Dalli said.

Read the full story at The Business Picture.