Maltese consumers, industry to face additional €16.5m EU-imposed ETS, fuel surcharges in 2026

Malta’s Association of Tractor and Trailer Operators (ATTO) expressed its serious concern Saturday about the imminent implementation of the 100 per cent Emissions Trading System (ETS) and fuel surcharge, scheduled to come into force on 1 January 2026.

In a statement, the Association warned that this measure will impose yet another disproportionate and unjust financial burden on Maltese consumers and the transport and logistics industry as a whole.

ATTO explained that the ETS and fuel surcharge applied to a single round-trip trailer on the Genoa-Malta-Genoa route will amount to €734.40. Based on 2025 projections, which are expected to close with approximately 54,500 trailers operating on core Ro-Ro vessel routes from Genoa, Livorno, Salerno, and Catania, the cumulative impact is estimated to translate into an additional annual cost of around €16.5 million.

The association questioned whether it is equitable or economically sound for the European Union to impose a uniform 100 per cent ETS surcharge on an island nation with no viable transport alternatives, effectively penalising Malta for its geography rather than supporting its long-term economic sustainability.

“These costs are not only exorbitant, they punish Malta simply for being an island,” said Joseph Bugeja, Chairman of ATTO. He added that “these costs will ultimately and inevitably be passed on to Maltese consumers and industry.”

“Malta does not have the option of overland transport. Unlike mainland states, our supply chains are entirely dependent on maritime connections. There is no alternative route to market. Every surcharge imposed on trailer movements is, in reality, a surcharge on the Maltese consumer, economy, and competitiveness,”  Bugeja added.

ATTO emphasised that while Malta is a committed EU Member State and fully supports environmental objectives, policy implementation must reflect economic realities. The Association warned that applying ETS charges without island-specific mitigation measures undermines competitiveness, fuels inflation, and places Maltese industry at a structural disadvantage within the Single Market.

For the past two years, ATTO has been calling for urgent dialogue at both national and EU levels, insisting that Malta’s status as an island nation with an island-based economy be formally recognised in the application of ETS-related charges.

From 1 January 2026, ETS rates and shipping-related surcharges will increase from 70 per cent to full application on 100 per cent of emissions.

“This becomes a real and measurable cost borne by families and businesses across Malta,” Bugeja said.

“This is no longer a theoretical discussion. Without corrective measures, the outcome will be higher consumer prices, further erosion of competitiveness for local businesses, and increased pressure on national supply chains.”

“For Maltese consumers and businesses, this situation is no longer sustainable. The fundamental question that must now be answered is whether Maltese consumers, as European citizens, should continue to be penalised simply for living in an island state,” he concluded.