Maritime Forum, MEPs call for change to ‘perverse’ EU emission tax rules
MEPs told ETS charges are putting Malta’s maritime sector at a competitive disadvantage
The Malta Maritime Forum has urged Maltese MEPs in Brussels to “work together to change perverse EU rules on emission taxes” that are impacting maritime transport costs and Malta’s connectivity.
During a meeting hosted by MEP Peter Agius, Maltese MEPs agreed that the EU Emissions Trading System (ETS) is imposing “a disproportionate economic burden which overlooks the operational realities of Malta's maritime sector”.
The discussion focused on ways to achieve a coordinated national effort to change EU rules on maritime transport which could lead to higher transport costs and regulatory loss of competitiveness on the Maltese maritime industry and the economy.
Data presented by the Malta Maritime Forum revealed that a shipping service from the Far East to Malta is paying an estimated €102,321 extra charge in ETS allowance payments per call when compared to the same route to nearby ports in North Africa which are not subject ETS.
Malta Maritime Forum Chairman, Godwin Xerri explained that as a result of the ETS the growth in non-EU hubs far outpaced that in EU ports to the tune of 500,000 TEUs in Europe to 6 million TEU in non-EU hubs.
Xerri explained also how the transfer of business from Europe to North Africa is resulting in curtailed connectivity for Malta and the rest of Europe with a spill-over effect on competitiveness.
Alex Montebello, Vice Chairman of the Malta Maritime Forum explained the unfair cost disadvantage suffered by EU transhipment hubs compared to competitors outside the Union resulting in transfer of business.
Malta Maritime Forum CEO Kevin J Borg outlined how the EU rules are having the undesired effect of ‘carbon leakage’ essentially transferring business but not achieving the emission reduction targets as intended.
MEPs Alex Agius Saliba, Thomas Bajada and Daniel Attard and representatives from the offices of MEP David Casa and EP President Roberta Metsola also participated in the meeting.
The discussion highlighted how the case for reform must be anchored not merely as a Maltese matter, but as a broader European concern in line with the competitiveness agenda currently being advanced by the European Parliament.