Maritime Forum Urges PN & PL To Stop ‘Politicising’ New Climate Tax On Shipping
The Malta Maritime Forum has called on the government, as well as the opposition to stop its “political bickering” over the new EU climate tax on shipping and find a way forward together.
“We sincerely appeal to the political forces to spend our limited resources and energies on strategies that will contribute to desired solutions,” the organisation said.
The EU Emission Trading Scheme is part of the Union’s policy to combat climate change and it places a cap on emissions rights which can be exchanged and bought between companies.
This cap decreases annually as a means to achieve climate neutrality.
The ETS further imposes an emissions tax on every ship that enters an EU country – if it comes from outside the EU, the ship would need to pay 50% of its greenhouse gas emissions and if it comes from within the EU it would need to pay 100% of these emissions.
After the EU ETS extension to the shipping sector came into effect this month, panic set in for a few former and current PN politicians who criticised the government for not successfully negotiating a better deal for Malta or allocating funds to help Maltese companies with this transition.
“The MMF appeals for the country to continue to pull resources in the same direction and continue to make the necessary representations to the European authorities with a united front without politicising this matter as unfortunately, has been the case in recent days with mud-slinging exchanges made in the public domain,” the MMF urged.
It said that member states were given limited time to examine and understand the full implications, saying it will go down in the history of the EU as the “fastest tracked regulations as if there was an agenda to expedite the necessary discussion and approval”.
“As the implementation date drew closer, the reality of the implications became apparent and no one can blame the shipping lines for working out contingency plans to avoid paying billions of euro by traversing the Mediterranean but avoiding calls at EU ports. This is where we stand at the moment.”
The forum further stated that carbon emissions from shipping within EU waters will not be reduced because of the potential shift of transshipment activity to non-EU ports – these would have to travel longer distances, thus increasing carbon emissions.
The regulations can also stunt economic growth, the forum said, because transshipment businesses that would formerly use European ports (like the Malta Freeport) will now move their business to non-EU ones. Jobs will decrease for this same reason.
“With this state of affairs there is definitely no scope or time for petty political bickering but there is the urgent need for a national effort to ensure that all risks associated with the poor implementation of these regulations do not damage the Maltese economy,” the statement concluded.
“We appreciate the daunting political task that government faces but the country must do whatever it takes to ensure that the direct maritime connections which Malta depends upon and from which we have benefitted for many decades continue to remain in place for the benefit of our nation and its people.”
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