BusinessToday Previous Editions

2 NEWS 8.9.2022 KURT SANSONE PASSENGER movements through Malta International Airport in August exceeded the 700,000 mark for the first time since 2019 in what is tradition- ally the busiest month. A total of 712,122 passengers travelled through MIA last month, marking a recovery of 86.5% of pre-pandemic traffic. e company said on ursday the result was registered on the back of a recovery of 84.2% in seat capacity. Occupancy levels, known as the seat load factor, on flights operated to and from Malta, reached an all-time high of 90.4%, an increase of 2.4 points over August 2019. e peak in traffic observed on 21 August was followed by a shift brought about by some drops in seat load factors as the month's holiday rush started to slow down. e top drivers of traffic for the month were Italy, the UK, France, Germany and Spain, cumulatively accounting for 67% of August's passenger numbers. While the UK and Germany featured among the top five markets, the number of pas- sengers travelling to and from these countries remained sig- nificantly below 2019 levels. However, Italy, France, Po- land, Switzerland, Greece and Austria all registered different levels of growth over 2019. At 44%, the Greek market reg- istered the most significant growth, which was driven by solid connections to three air- ports offered by two airlines. France was the second fast- est-growing market with an increase of 34% in passenger movements. MIA is currently connected to nine French air- ports through flights operated by five airlines. Tourism recovery continues as MIA surpasses 700,000 passenger mark for first time since 2019 Central Bank and European Investment Bank co- host conference on carbon neutral economy THE Central Bank of Malta (CBM) to- gether with the European Investment Bank (EIB) co-hosted a hybrid confer- ence entitled 'Financing the transition to a carbon neutral economy,' held on Monday 5 September. e hybrid con- ference was held at the Central Bank of Malta in Valletta. CBM Governor, Professor Edward Scicluna delivered his opening remarks and was followed by an address from the EIB's Vice-President, Gelsomina Vigliotti who held that "today's con- ference, organised together with the Central Bank of Malta, represented a unique opportunity to highlight the in- vestment needs for the country and its businesses to promote a green and sus- tainable future. As the EU climate bank we stand ready as a trusted partner to support the Maltese economy against the current and future challenges." e Minister for the Environment, En- ergy and Enterprise, Miriam Dalli deliv- ered the keynote speech. In her keynote address, Minister Dalli highlighted the fact that an indispensable element in the decarbonisation of our economy is the stewardship of key financial ena- blers such as the European Investment Bank and the Central Bank of Malta. "is is because the financial industry holds the capital required for this his- torical transition and we need to ensure that both fiscal and monetary policy are supportive of this capital flow towards green projects and sustainable indus- tries," said Minister Dalli. EIB Chief Economist, Debora Revolt- ella, presented the main results from its 2021 Investment Survey. e survey offers unique insights on the corporate investment landscape, in particular as regards firms' investment priorities and the constraints they face. e 2021 edi- tion of the survey delves into the mas- sive shock produced by the COVID-19 crisis, and the response and recovery programmes put in place by the Europe- an Union and by national governments. e report also assesses the extent to which European firms are addressing the need to make their businesses more green and digital. EIBIS 2021 shows that on balance few- er Maltese firms invested during 2020. eir outlook towards future invest- ment remained negative, though much less negative compared to EIBIS 2020. As regards climate change, Maltese firms were less likely than the average EU firm to feel the effects of climate change or to have invested in energy efficiency. However, Maltese firms are starting to internalise the risks asso- ciated with the transition to net zero, with around 85% either having already carried investment to deal with climate change or planning to do so in the next three years. CBM experts Joanne Ciantar and Ste- fan Scerri, from the Financial Stability, Surveillance and Research Department, presented a first assessment of the Mal- tese financial sector's direct exposure to economic sectors that may be affect- ed by the transition to a less polluting economy. According to this assessment, the direct exposure of banks and non- banks to such sectors has remained concentrated towards low emission sectors at least since 2016, which in- dicates that the potential impact from climate-related transition risks are rel- atively contained. However, operations within such low CO2 emission sectors could induce activity in more polluting sectors, and one cannot thus exclude spillovers on the latter or second-round effects. e impact on the financial sec- tor is expected to be higher if the tran- sition is more abrupt and it is therefore essential that the financial sector takes early steps to manage financial risks re- lated to climate change and incorporate environmental considerations in their activities and risk management practic- es. Commenting on the conference, Gov- ernor Scicluna stated how "over the next years, regulatory authorities will be introducing the appropriate incen- tives in financial services regulations so that the flow of credit towards achiev- ing a climate neutral society takes prior- ity. However, a lot will need to be done by financial institutions and by non-fi- nancial corporations themselves." Central Bank Governor Edward Scicluna

• Cover