Issue link: https://maltatoday.uberflip.com/i/1495990
8 OPINION 30.3.2023 How is Malta gearing up for the EU's Green Deal? George Mangion George Mangion is a senior partner at PKF, an audit and consultancy firm, and has over 25 years' experience in accounting, taxation, financial and consultancy services. His efforts have made PKF instrumental in establishing many companies in Malta and established PKF as a leading professional financial service provider on the Island T he European Union's Green Deal is a transformative agenda to com- bine policies necessary to tackle climate change, to reverse biodiversity loss, and eliminate pollution by moving to a circular economy. But is Malta fol- lowing in line to welcome and embrace the Green Deal? is article explains what is required of us in the next decade to follow and upgrade our green ecology and mobility infrastructure. Malta is one of the 27 EU Member States which committed to turn the EU into the first climate neutral continent by 2050. To get there, we pledged to re- duce emissions by at least 55% by 2030, compared to 1990 levels. One expects that smaller countries will find it more of a challenge to set the course for such a healthy revolution, since they do not enjoy economies of scale, one expects them to miss deadlines. Only thus, can we claim to reach a different destiny: a more inclusive, greener, and overall stronger society. e ultimate priority for the EU is to develop a supply of renewable hydro- gen. How can industrial quantities of renewable hydrogen be obtained? e straight answer is via electrolysis using renewable electricity to split water into hydrogen and oxygen. e hydrogen is collected and used primarily in industry (in case of Malta to run power stations), while oxygen is released as the by-prod- uct or captured for use by others. e government issued a PMC last May to encourage investors to submit detailed cost estimates on the necessary equipment needed to start a renewable energy supply from wind and solar pref- erably located in offshore waters with- in the EEZ (exclusive economic zone). One lauds the finance ministry for is- suing this PMC and augurs that in the near future a comprehensive tender is issued calling for submission of detailed technical offers to generate Green Hy- drogen. One remarks positively about this ambitious project so that Malta can honour its international commitments towards de-carbonization. Ideally, preferred bidder/s aim to use the vast area available in shallow waters earmarked in the EEZ which is roughly over one thousand square kilometres. Malta like other EU countries is poised at the start of an exciting journey to- wards a hydrogen-based industry. Any surplus green energy can be transferred on the European gas commodity market via a subsea gas pipe. Readers may ask what is the use of green hydrogen apart from electrici- ty and driving cars/trucks using fuel cells. In fact, many local industries may attract enhanced export orders when switching to hydrogen in their produc- tion processes. e list includes plants that produce fertilizers, chemicals, glass, and many other products. Cur- rently these industries use hydrogen made the traditional way from fossil fuels, releasing large amounts of carbon dioxide into the atmosphere. However, if they replaced hydrogen from fossil fuels with renewable hydro- gen, they would greatly reduce their impact on the planet. It is not rock- et science and a number of EU coun- tries have successfully achieved this milestone. ese are seeing demand for commercial to increase, and in the short term will reduce prices compared to LNG and natural gas. In addition, harmonised rules on gas quality are being proposed, allowing for the blending hydrogen with ammonia and/or methane. Considering that Mal- ta started late to introduce electric cars (registrations are increasing daily as generous subsidies are being offering by Transport Malta for first time buyers) yet we are far away from claiming the trophy for 80% electric cars on the road (currently held by Norway). e Commission seeks member state to ensure that citizens have the infra- structure they need to charge these electric vehicles both for short and long journeys. In addition, Malta needs to hasten preparations to upgrade inland mobility since from 2026, road trans- port will be covered by emissions trad- ing, putting a price on pollution, stimu- lating cleaner fuel use, and re-investing in clean technologies. e Commission is also proposing carbon pricing for the aviation sector, which benefited from an exception un- til now. It is also proposing to promote sustainable aviation fuels – with an ob- ligation for planes to run on sustainable blended fuels for all departures from EU airports. is can mean that avia- tion fuel used by aircraft carrying home an expected three million tourists this year, will see visitors face higher travel costs. e storage potential of hydro- gen is particularly beneficial for power grids, as it allows for renewable energy to be kept not only in large quantities but also for long periods of time. Looking back, the EU strategy on hy- drogen was adopted in 2020 and sug- gested policy action points in 5 areas: investment support; support produc- tion and demand; creating a hydrogen market and infrastructure; research and cooperation and international coopera- tion. Renewable hydrogen will also pro- vide a vital function to support wider system integration, delivering the flex- ibility required to meet the needs of a transitioning energy system. Many predict that renewable hydro- gen will in the near future rapidly re- duce in cost. With continuing support for its development, it can become low- cost, widely-available, and a key part of the green energy system. As can be expected, rrenewable hydrogen can also be used to de-carbonise shipping and aviation. Green hydrogen can be combined with carbon dioxide from industri- al processes that would otherwise be released into the atmosphere or from direct air capture to create synthetic fuels or 'e-fuels' which are used instead of fossil fuels. Stakeholders who want to know more about this exciting sub- ject of Green Fuel may wish to reserve a place at a PKF conference hosted at the Hilton with collaboration of Times of Malta. is packs technical presentations from 16 experts both local and foreign on environment and starting a path to- wards green energy. We are pleased to note that the event will be opened by the Miriam Dalli - minister for energy and sustainable development - delivering a keynote speech on this exciting subject. Mark your calendar to be among dele- gates at the Hilton Malta on 12th April 2023 between 9am and 2 pm. It is an event not to be missed and will be followed by a networking lunch and drinks. is is a revolutionary theme which if taken at the flood will lead to fortune. ere is no doubt that some- thing big must be done to fight climate change. Considering our highly mobilized community, the advent of a booming tourism industry and our 100% depend- ency on fossil fuels, it is time that stake- holders wake up and seriously start ed- ucating themselves on wind and solar energy with the eventual generation of green hydrogen. Danish power company Orsted announced its functional facility in an offshore windfarm