Ahead of the upcoming MEPC meeting scheduled for 14 October in London, the Malta Maritime Forum (MMF) calls on IMO member states to formally endorse the Net-Zero Framework. This worldwide initiative represents a crucial milestone in the decarbonisation of international shipping and will offer essential clarity for the industry as it moves towards low-emission operations.
Should the IMO framework be adopted, the MMF encourages the European Commission to ensure there is maximum alignment between the IMO framework and existing EU policies such as FuelEU Maritime and the EU Emissions Trading System (ETS). A consistent regulatory environment is indispensable to prevent double payments, lessen administrative complexity, and avoid market distortions and business leakage, which are already threatening the competitiveness of European ports. The MMF anticipates with interest the forthcoming evaluation by the European Sustainable Shipping Forum (ESSF) and advocates for a harmonised approach that underpins the EU’s climate objectives while preserving a fair and competitive landscape for the maritime sector.
In relation to the Fit for 55 Package, the Forum has persistently engaged with the Commission, highlighting the significant incentive created by the ETS for shipping companies to circumvent the scheme by redirecting their transshipment activities and indeed, their port calls, from EU ports to newly constructed or expanded terminals in North Africa. The Forum is gravely concerned about the disproportionate risks that EU ETS poses to Malta’s maritime connectivity and continued economic wellbeing. To this end, last July, it submitted further robust arguments to the EU Commission evidencing business leakage, carbon leakage, loss of maritime connectivity, and the undermining of EU principles, such as competitiveness, cohesion, fair competition, de-risking, supply-chain integrity, carbon neutrality, and socio-economic resilience.
The MMF expects Malta to take a strong stance in its European and international policy, advocating for the withdrawal or phasing out of FuelEU and ETS to prevent double taxation and uncertainty in the industry at the global level.
