‘Malta should be part of this’ – MEP on European emissions tax revolt
Peter Agius says he was 'surprised' Malta had not joined 10 countries in signing letter to European Commission
MEP Peter Agius has criticised Malta for failing to join a group of 10 countries in calling on the European Commission to review a controversial emissions tax.
Agius was responding to reports of a letter signed by energy ministers from 10 countries – including Austria, Bulgaria, Czechia, Croatia, Greece, Hungary, Italy, Poland, Romania, and Slovakia – calling on the commission to review its Emissions Trading System (ETS).
ETS requires large cargo vessels docking at EU ports to buy ‘allowances’ on their carbon emissions, effectively amounting to a carbon tax. Critics say the system harms European competitiveness and disproportionately affects member states like Malta.
The 10 countries acknowledged that while climate change must be tackled decisively, Europe could only succeed “if our industrial base remains strong”.
In a post on Wednesday on X, Agius wrote: “Malta should be part of this effort to review emission rules! As an Island, Malta is facing twice the impact of ETS on air and sea connectivity”.
Speaking to Times of Malta, the MEP stressed, “now is the time to hammer the point that ETS has to change”.
“I was surprised Malta did not sign it, as it will help pile pressure on [European Commission president] Ursula von der Leyen. We should join the pressure,” he said, describing the implementation of ETS as “too fast” and calling for a review as early as possible.
Since Europe’s Green Deal – committing to investments in innovation, clean technology, and green infrastructure – was signed in 2019, the world had changed “significantly”, the letter, seen by Times of Malta, read.
“Energy prices have skyrocketed, inflation has made the investments required for the transition even more costly, and current decarbonising solutions are not yet sufficiently developed for economic sustainability for hard-to-abate industries.”
In its current form, ETS until 2034 is “too steep and overly ambitious”, the countries said, arguing that high energy prices amid recent geopolitical developments meant the system now posed an “existential risk” to industry.
Energy ministers called for a “thorough review” of ETS aimed at lowering electricity prices, and extending free allowances beyond 2034.
“Furthermore, it is crucial to smooth the phase-out of free allowances from 2028 onwards to avoid placing an excessive burden on industry during this transition period.”
While the commission has committed to reviewing ETS in July, the 10 countries argue the review should be brought forward to May “at the latest”.
The letter comes as criticism of ETS continues to mount in Malta.
Hauliers said earlier this month that Maltese consumers were paying an additional €654,000 per week in freight and shipping costs between the emissions trading system and rising fuel costs due to the war in Iran.
They “implored” the EU to “reconsider” ETS, arguing the system is “already highly unfair” on Malta.
Last month, MEPs and the government warned Malta was paying “disproportionate” costs due to ETS.