This week I came across an article containing the words laughable and ridiculous in the heading. It relates to the bottle recycling scheme, and the storage space required by restaurant owners to load hundreds of recyclable bottles. True, it is indeed bulky. Considering the limited space available to restaurant owners, also in view of the spike in the rental prices over the past years, a solution must be found to optimise space.
However, let’s go back to pre-EU membership. All restaurants were required to keep the glass bottles they sold to customers. It was in their interest to retain them, as they carried a small refund. These glass bottles were then returned to the suppliers, for recycling, and for a refund. We had one of the best systems, which today, the EU is aspiring to achieve in what they label as sustainability. Malta was 30 years ahead of the EU. However, here I ask what used to happen in the past with such piles of glass bottles. Were these glass bottles stored anywhere at the restaurant’s premises? Did we use a system where the collection of glass bottles was more frequent? Frankly, the current recycling system is required, and we cannot do without it. If we do not recycle plastic bottles, it is a major problem, because the tonnes that go unrecycled, must cover an own resource fee to the EU. What does this mean? It means that if Malta does not recycle enough plastic, the difference must go to the EU in the form of a fee per tonne of unrecycled plastic. It is a form of an indirect environmental tax. It is not necessarily bad, because it fosters sustainability, and protects the environment.
However, no politician or policymaker is explaining these things to the public. I think the public has the right to know, and the introduction of such policies must come through a consultation system. It is indeed a headache, and we require a solution. In 2022, on the eve of the recycling introduction, I spoke to someone close to the centre of power, to perhaps introduce the recycling system in phases. The reason was not related to storage spaces, but to contain expected inflation given the surge in prices due to imported inflation. He told me that people do not talk to him about these things. You know, as if he sampled all of Malta. The end result is now history. And this is the problem when you do not have experienced economists around the centre of power.
Nevertheless, the problem though is that the private sector must understand, now more than ever, that the free-market system decides how many restaurants we have on the market. It is a matter of demand and supply, especially in an EU market. We cannot cap it or stifle competition. And I hope we do not go there. Also, we must understand that the concept of ESG will be expediating this process. And these are minor policies relative to what we must endure in the coming years, and I will explain. The EU embarked on a journey to decarbonise its continent. Besides, the EU is also mitigating and correcting the harmful effects of plastic, aluminium and excessive waste that cause adverse impacts on biodiversity and the environment. Furthermore, the EU is also trying to advance the concept of the circular economy. It means that consumer products that can be recycled, and introduced back to the circular economy, reduces waste, and is indeed beneficial for the environment.
Notwithstanding that Malta advanced over the years, we still have a problem to implement EU regulations across major sectors. What I see is a denial problem, embedded into our system. When the Nationalist Party spent 25 years in power, they wasted years to introduce reforms and to align with EU policies and regulations. It was a political tactful approach. However, at the expense of the collective. The reforms were needed to join EU membership, with many problems being faced post 2004. However, the acceleration of new regulations was not at the same rate relative to today. The new regulations and directives, which EU member states are required to implement, is being accelerated to unprecedented levels. In a matter of a year and a half, there were multiple agreements on regulations and directives between Council and the European Parliament. In my eight years in Brussels, I never saw such an acceleration. Usually, it used to take years of prolonged negotiations to agree on a regulation. This brings me to the point that if the current administration is not going to keep up with the same rhythm, we are risking on falling behind faster than in the preceding decades. Let’s take the upcoming directives and regulations. This is why I said that the recycling of plastic is nothing compared to what we are expecting.
For instance, the revised Energy Performance of Buildings Directive, which entered into force in May, will require the Maltese government to increase the rate of renovation, especially for those buildings that are performing the worst. Besides, last year, the EU agreed on the revision of the EU energy efficiency directive, establishing ambitious targets. It is binding EU member states to collectively reduce roughly 12% of energy consumption by 2030. Furthermore, EU member states are required to take the necessary measures to achieve ambitious targets under the Waste Framework Directive. By next year, member states are required to prepare for the reuse and the recycling of municipal waste, which must increase to a minimum threshold of 55% to 65% by weight between 2025 and 2035.
These ambitious targets require the coordination of all those concerned, not least the numerous agencies and authorities that were established over the years. There must be an element of strict coordination between different stakeholders. Otherwise, it is going to be quite difficult to retain our competitiveness. We do not afford any lingering when implementing EU directives and regulations. The impact on the logistics and operations, especially to coordinate between different entities is crucial for a proper transition, and to keep up with the never-ending acceleration of regulations and directives. The EU is to forge ahead with such policies. It is up to us to stop whining and get things done. Authorities must ensure that their policies are not exerting additional costs and pressure on the private sector. However, the private sector cannot expect the government to provide for everything. What we need is the proper functioning of the operationalisation of our system, from trash collection and separation, recycling of materials, proper and efficient authorities that respond quickly to EU regulations, and competent people who understand EU policies. Well, those who never understood EU policy must not be running our public entities.
Finally, those around the centre of power must forget about their egos. Else, we have to patiently endure the ineptness of those who were frustratingly foisted on us to run public entities.