Container ships could be moving to non-EU ports to evade a new environmental tax on shipping, according to a report approved by the European Parliament on Wednesday.
According to the European Commission, the EU Emissions Trading System (ETS) "makes polluters pay for their greenhouse gas emissions, helps bring emissions down and generates revenues to finance the EU's green transition.
However, the European Parliament report suggests that the new tax, which came into effect on January 1, has only served to move cargo ships to ports with lower emission costs.
(The EP) "Underlines the risks of delocalisation of container transhipment activities to non-EU ports with the aim of evading the requirements of the EU emission trading system (ETS)," the report says.
On Wednesday, parliament approved the report with 584 votes in favour and 21 against.
Maltese MEP Josianne Cutajar is on the EP's transport committee. That committee was responsible for drafting the report.
"Container ships that typically opted for EU ports like the Malta Freeport, are instead relocating to other ports, namely those in North Africa, so as to avoid the new ETS emissions tax," a statement from Cutajar's office said on Wednesday afternoon.
"It is essential to continue pressuring the (European) Commission towards a fair and effective solution to the issues raised by ETS," the statement said.
Cutajar included an amendment in the report that highlights how ports are especially important for islands where "ports often serve as the only social and economic connection lifeline to the rest of the Union".
ETS has been a hot-button issue for Maltese industry which social partners raised with the government late last year, as the true potential implication of the new EU rule came to light.
Express Trailers, one of Malta's largest logistics companies, said it is forced to increase its prices because of the EU tax.
A few weeks ago, the company's CEO Etienne Attard told Times of Malta that the upcoming Emissions Trading System (ETS) "punishes" Malta for being an island state.
The Malta Freeport has also said it fears many ships will bypass EU ports altogether to avoid paying the tax.
Besides the environmental tax, the report calls for a European port strategy to ensure fair competition, encourage cooperation between European ports and eliminate harmful practices such as underpricing.
It also warns against investments in ports by foreign state-owned players from autocratic regimes, mentioning China specifically.