Malta warns of competition distortions from EU maritime emissions rules

The Malta Maritime Forum (MMF) has warned that the European Union’s Emissions Trading System (EU ETS) for maritime transport is causing “serious competition distortions and leakages.” The forum informed Parliament’s Standing Committee on Foreign and European Affairs that the current application of the system may threaten Malta’s maritime connectivity and broader economy by encouraging transhipment operations to shift to ports outside the EU.

The MMF noted that reduced connectivity could impact various sectors, including feeder services, port operations, bunkering, and legal services, potentially leading to job losses and industrial relocation. While supporting decarbonisation goals, the forum argued the system fails to meet climate objectives as ships continue to traverse the same waters but move cargo away from EU ports.

In response to these challenges, Maltese Labour MEPs Alex Agius Saliba, Daniel Attard, and Thomas Bajada have proposed amendments to the EU ETS. Their proposals include changing how obligations are calculated for island states to reflect actual cargo capacity used rather than total vessel capacity. They are also seeking to extend existing derogations for small island connections until 2040 and requesting increased support for sustainable aviation fuels and direct funding to help decarbonise fleets.