Striking the right balance on ETS and competitiveness

MBB-led delegation to EU institutions delivers strong message and advocates for Maltese business interests

The Malta Business Bureau led a 19-strong business delegation to Brussels to engage with institutions, policymakers and decision-takers, discuss ETS, competitiveness, the Blue Economy and the newly published Sustainable Tourism Strategy, and advocate for Maltese business interests.

Speaking during one of two policy roundtables for which Commission and EP officials were present, MBB CEO Mario Xuereb spoke about striking the right-balance between connectivity, competitiveness and the challenges brought about by climate change.

“Around 70 per cent of Malta’s imports arrive on the Italy to Malta line so the maritime EU ETS reaches Maltese businesses and households through freight rates MBB supports the ETS and its 2030 and 2040 objectives. Our concern is proportionality: on a route with no alternative mode, a full carbon charge cannot change behaviour, it can only raise prices.”

Policy Advisor Nigel Caruana listed MBB’s recommendations on ETS which include

• a 50 per cent ETS derogation with no end date for ro-ro cargo ships, ro-pax ships and container ships travelling between a port in a Member State and a port on an island in a Member State with a surface area of less than 10,000 km² and no road or rail link to the mainland;
• charging only the cargo actually carried on the empty return leg;
• keeping the transhipment safeguards at a 50 per cent threshold and the 150 nautical mile rule to protect the Malta Freeport against nearby North African hubs;
• providing free allowances covering 50 per cent of the ETS surrender obligations for eligible flights to and from islands below 10,000 km² with no fixed road or rail link;
• and strengthening support for sustainable aviation fuel.

MBB Vice President Sergio Vella said that lessons learnt by Maltese industry in lobbying and advocacy efforts have fuelled and driven the organisation’s efforts to reach out as early as possible to influence policy proposals. He said MBB keeps monitoring and pushing for resolution of issues in favour of Maltese business and industry at various stages and different levels of the policy-making process.

On the Blue Economy, MBB Policy Executive Juliette Mizzi also presented recommendations which include the appointment of an EU Blue Economy Envoy, further cooperation on youth and skills development through Global Gateway; the mobilisation of investment and EU funding in EU port electrification, sustainable maritime fuels and water and energy resilience amongst others.

The delegation held meetings with BusinessEurope and HOTREC at their offices, informal meetings with Eurochambres and also had the opportunity to exchange views in separate meetings with EP President Roberta Metsola; Commissioner Glenn Micallef; and PREU Neil Kerr, who was joined by Deputy Permanent Representative Chris Farrugia.

They also engaged in a Q&A session with Maltese MEPs Alex Agius Saliba, Peter Agius, Daniel Attard and Thomas Bajada. Over the past months MBB engaged MEPs propose amendments to the ETS reform proposal put forward by the European Commission earlier this year. Xuereb thanked them for keeping an open channel of communication throughout and encouraged them to keep pushing the positions discussed with MBB for the benefit of Maltese business and industry.

Attard Holdings, Express Trailers, Concorde IFF, EuroBridge, ATTO, AP Valletta, Deloitte, KPMG, EY Malta, FinPlus Europe, the Institute for Tourism Studies, KM Malta Airlines, Brands International and Harbour Solutions joined the delegation. 

The MBB is the only Maltese organisation based in Brussels. It has been advising the Malta Chamber of Commerce and MHRA on EU policy for the past three decades.

The delegation was supported by Malta’s Permanent Representation to the EU, KM Malta Airlines, VisitMalta and Transport Malta.