Issue link: https://maltatoday.uberflip.com/i/1449831
I n June 2021, Malta started the pro- cess to declare an Exclusive Economic Zone (EEZ) with the potential of ex- tending its footprint by as much as 71,446 sq. km beyond territorial waters. Conse- quently, the government enacted legisla- tion for the legal framework for economic activities in an EEZ outside the country´s territorial waters. With Malta´s size of just 316 sq. km, the zone could potentially be 226 times the size of the tiny Mediterranean is- land. Finance Minister Clyde Caruana stressed the huge economic potential such a declaration would give to the Maltese Islands. In the coming years, Malta´s EEZ could be used for fisher- ies, artificial islands, wind farms, solar farms, wave-generated electricity, and revenue from shipping movements. Just recently, the government showed further commitment to proceed with the EEZ plans by identifying two areas for offshore economic activities. A 900 sq. km zone of shallow waters around Hurd´s Bank will be the designated Area 1 of Malta´s EEZ and a 6,500 sq. km belt around the island extending between 12 nautical miles to 25 nautical miles will form Area 2. e former is said to have the greatest potential due to its shallow offshore characteristics with a depth ranging from 50m to 100m, in compar- ison to depths ranging from 100m to even 1 km in designated Area 2. Concessions are planned to be award- ed to private companies in a tendering procedure with planning and envi- ronmental permits, which will be fast- tracked and issued within only three months after all required documents have been submitted. ese concessions are foremost aimed at projects for the production of renew- able energy, the production and storage of hydrogen, fish farms, and the estab- lishment of artificial islands. e pro- cedure is in motion, and the finance ministry is actively looking for interna- tionally recognised companies interest- ed in undertaking targeted projects in Malta´s newly declared EEZ. e observation has to be made, that oil exploration and seabed mining are not included among the objectives not- ing such exception when in the past the government has considered such objec- tives of crucial strategic importance to the economy of the Maltese islands. e current plan seems to have a rath- er green undertone aiming at attracting the attention of investors who wish to use the area for developing projects both in the renewable and more excit- ing in the hydrogen production. With the production of hydrogen on its list, Malta is paving the way for its own production of green hydrogen, which uses renewable energy sourc- es instead of fossil fuels for energy, to stop being 100% reliant exclusively on the Sicilian hydrogen ready pipeline in the future. Even though the technology used for the production of green hydro- gen still needs to be fully developed and tested, it is a long-term project with the potential of making Malta fit and com- petitive as an exporter for the future. Legally, Malta is given jurisdiction- al rights and duties to a declared EEZ under the United Nations Conventions on the Law of the Sea (UNCLOS). But with power, over the two designated areas for economic activities outside the country´s territorial waters, comes great responsibility. Malta must have the capacity to monitor any areas that fall within its EEZ, and must ensure ef- fective policing, and needs to manage its resources properly. On the one hand, Malta has the respon- sibility to choose and examine the pro- jects carefully to follow ecological and environmental standards. Especially in the area of Hurd´s Bank, the underwater devastation through bunkering already must be alarming with a high vessel den- sity and lacking ecological control. is is to forget the deleterious eco- logical impact to the seabed from the already existing fish farms. It, therefore, seems important for the government to be extra cautious when issuing fast- tracked permits from the Planning Au- thority and the Environment Authority. Especially if the environmental impact assessments are to be carelessly rushed, and the environmental costs should properly be taken into account. On the other hand, the main problem can be seen in the exercise of the juris- diction over the newly claimed territo- ry together with its rights and duties. Malta needs to establish control and enforcement procedures in its econom- ic zone to prevent unsafe practices and environmental pollution and illegal ac- tivities, which might include illegal fish- ing, smuggling, and the trafficking of drugs, among others. e area around Hurd´s Bank, which is outside Malta´s territorial waters, is known for illegal oil and gas activities, as became publicly known in 2019 when Venezuela used Hurd´s Bank to make ship-to-ship transfers of oil products to bypass US sanctions. In practice, the establishment of an EEZ would mean that those activities would now fall un- der the direct jurisdiction of Malta. Moreover, under Article 60 of UN- CLOS, the coastal state is given exclu- sive jurisdiction with regard to customs, fiscal matters, safety, and immigration, besides an exclusive right to construct, authorise and regulate artificial islands, structures, and installations. Within its EEZ, Malta, therefore, has the obliga- tion to take all measures necessary to ensure that human rights are fully pro- tected and that no person is deprived of any protections afforded by the law. In the context of such obligations and effective policing, Malta has to invest in adequate resources to check the vast ar- eas of the sea it is now responsible for. In that instance, costs of the enforcement of law and order have to be taken into consideration, as well as the question of a sizeable navy and air surveillance craft sufficient to monitor all of the areas un- der Maltese jurisdiction. In a nutshell, the ambitious dream of Malta´s EEZ could be the way forward to extend territorial potential thus ex- ploiting the commercial viability of the EEZ option. As can be expected, with more territory comes a higher respon- sibility and the question arises wheth- er Malta Enterprise can attract FDI to harness fully the capacity and economic power to make optimal use of its EEZ rights, fulfil its duties and keep up with its obligations. Time will tell if these waves of change will usher prosperity. With hindsight, the oil and gas exploration drive was mothballed eleven years ago so let us hope a bold attempt is now made to reap the fruits from the EEZ treasure chest. Malta's EEZ: such acreage, if well used, can lead to prosperity Lina Klesper Lina Klesper is a Legal Assistant at PKF Malta, an audit and consultancy firm 8 OPINION 10.2.2022