The Malta Maritime Forum has urged the Maltese government to advocate for the withdrawal or phasing out of the EU’s Emissions Trading System (ETS) and FuelEU Maritime regulations.

IMAGE: Bunker barges anchored off Malta. Getty Images

The Malta Maritime Forum (MMF), a non-profit association representing Malta-based shipowners, operators and other maritime stakeholders, said the upcoming IMO vote on its global net-zero framework marks a “crucial milestone” that could provide much-needed clarity for the industry’s green fuel transition.

The forum has called on the European Commission to align the EU’s regional regulations with the IMO’s forthcoming global framework.

It argues that the EU ETS incentivises ships to divert port calls from European ports to North African alternatives to avoid higher compliance costs.

This results in “business leakage, carbon leakage, loss of maritime connectivity, and the undermining of EU principles such as competitiveness, cohesion, fair competition, de-risking, supply-chain integrity, carbon neutrality, and socio-economic resilience.”

According to the MMF, Malta should push for a phase-out or complete withdrawal of the ETS and FuelEU Maritime regulations “to prevent double taxation and uncertainty in the industry at the global level” if the IMO framework is adopted.

The Cyprus Shipping Chamber (CSC) has also expressed its support for the adoption of the IMO’s net-zero framework, aligning itself with a joint letter from global shipping trade bodies, according to reports by Cypriot media outlets.

Signatories of the letter include the International Chamber of Shipping, World Shipping Council and IBIA among others.

By Konica Bhatt

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