Climate change is an unescapable reality that for decades humanity ignored at its own peril, prioritizing economic growth at all costs. More than ever, the world has grown conscious that we have a last opportunity to change course and ensure a healthy future for our planet.

Failure to act will increase threats to our society and to the natural world, and ultimately to our economies and livelihoods.

This is why addressing climate change requires decisive action. No economic sector can consider itself immune from this reality, as some way or another we all contribute to this phenomenon, and we are all effected by it. Even yet, it is important that we comprehend how our nation will be affected since the need to act does not negate the fact that various stakeholders will be impacted differently.

The European Union has taken a strong leadership in front of this climate catastrophe. Its Fit for 55 package introduces legislation aimed at reducing greenhouse gas emissions in the Union by at least 55 per cent by 2030, compared to 1990 levels. The proposals cover a wide range of areas, including renewable energy, energy efficiency, transportation, agriculture, and carbon pricing.

Contrary to some misconceptions, global shipping represents less than 3 per cent of global emissions. Given that ships transport large volumes over very long distances, their impact is a fraction of the impact caused by other modes of transport. Suffice to say that when compared to transport by truck, the emission caused by ships is four times less per ton mile transported.

Addressing climate change requires decisive action

This said, shipping too has to make its contributions to CO2 emission, but it is somewhat unfair that the maritime industry will bear a significant brunt of the proposed changes being introduced by the EU. As a maritime economy, we will be affected in no small manner, and it is our collective duty to brace for impact and future-proof our industry through the necessary, forward-thinking reforms.

Let us consider a few of the immediate challenges to the maritime sector.

One of the EU packages includes the imposition of further fiscal burdens on vessels entering European ports. While we are onboard with the rationale behind it, competitiveness will suffer throughout the continent. Added to this, there is a higher risk that peripheral countries, including Malta, which is visited by some 6,000 ships every year, will suffer through cargo diversion to non-EU ports. Shipping lines which traditionally berth in European ports might choose to save fiscal and compliance costs by choosing non-EU locations towards North Africa and the Balkans. On the other hand, delivery of new, compliant vessels will take a number of years. This will have a direct bearing on our transhipment activity.

Same applies to our successful and profitable bunkering industry. Malta sells more than three million tons of fuel per year, both to ships in our ports and also to those which sail by Malta. Clearly, this business will face challenging times as Europe pushes away from polluting fuels. Yet, it is also an opportunity for investing in cleaner fuels.

This implies investing in storage, procurement, supply. The type of tankers or barges that supply clean fuels are different from what is used today to offer such services, therefore requiring a significant outlay. Storage facilities for LNG or hydrogen are completely different from those used for traditional fuels. In this context, we really need to clearly identify opportunities offered by our offshore zone and what could be done in Malta’s extended economic zone.

These are just a couple of new realities that we must face sooner rather than later.

As a strategic location in the Mediterranean, Malta can have an important role in the maritime industry of the future. Yet, to take up such leadership, we need a maritime vision reflecting these realities. Having first mover advantage in the supply of clean fuels would be the right thing to do to allow us to grasp such opportun-ities.

We can opt for closing ranks and protecting what we have built over the years, but the reality out there calls for courage and foresight.  We have to move out of our comfort zones and adjust and adapt to the realities that the near future will bring.

Malta can have an important role in the maritime industry of the future

Within this context it is most heartening to have this same vision shared by the Hon Dr, Aaron Farrugia, Minister for Transport, Infrastructure and Capital Projects, whom I had the pleasure to meet in recent days and with whom I discussed these challenges facing the local maritime industry. The political support is as important as the private investment to overcome the challenges facing our industry. What is even more encouraging is the fact that on the maritime scene there is no political divide.

Ivan Castillo, shadow minister for maritime affairs, has also espoused these same ideals and declared publicly that he is supporting Malta’s maritime agenda.  Having a public private shared vision which brings together authorities, regulators and the private sector will be the foundations for building together a robust industry that can turn these challenges into opportunities. We also need to enhance the communication channels between the maritime industry and our political representatives in Brussels so that our concerns are well understood and taken into account when such issues as the Fit for 55 are being discussed at the EU level.

The next step in this journey is the development of a national maritime strategy to plot the strategy that the local maritime industry has to take to thrive and build upon the successes that those who came before us managed to deliver.

This voyage will not happen overnight. But it will not happen either if we do not get on with it.