On 13 October the MMF gave an extensive presentation to the country’s social partners at the Malta Council for Economic and Social Development (MCESD) on the risks which Malta is facing from the implementation of the Emission Trading System (ETS) on shipping which will come into effect as from January 2024.

The matter of concern was brought to the agenda of the Council at the request of the Malta Employers’ Association further to a briefing held in September with the MMF.

MCESD members were informed that in the absence of a global measure imposed equitably on an international basis, the provisions contemplated by the EU in the ETS gave rise to unfair competition between EU ports and ports in other continents within the Mediterranean region. This scenario would lead to business and environmental leakage for the EU Member States concerned to the extent that Malta could suffer a permanent loss of its transhipment activity that today accounts for 3 million containers, as well as direct connectivity with several ports worldwide as the major shipping lines could opt to transfer their transhipment operations to non-EU ports where ETS does not apply.

The Meeting was also addressed by the Hon Aaron Farrugia, Minister for Transport, Infrastructure and Capital Projects.

Karin Grech
Author: Karin Grech