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9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 13.7.2023 T he Maltese parliament first enacted the Ex- clusive Economic Zone (EEZ) Act in 2021, thus extending maritime opportunities for the country beyond territorial waters. The EEZ covers the large stretch of sea be- tween 12 nautical miles and 25 nautical miles. Subsequently, in May 2022, government issued a preliminary market consultation to gauge international interest for the develop- ment of projects in the EEZ. The PMC em- phasised that projects to be considered would involve renewable energy – offshore solar, wind, and wave energy – hydrogen generation, aquaculture and artificial islands. The timeframe for submissions closed in September last year and as yet it remains unclear what project ideas have been put forward. But parliament took an important step yes- terday when it debated several legal changes to define the EEZ and create a legal frame- work that gives potential investors peace of mind. It is positive that Malta is adopting a pro-ac- tive approach to develop its EEZ. This pro- vides a potential to generate economic growth and jobs. The vast stretches of sea present an enor- mous potential to develop large scale alterna- tive energy projects such as floating wind and solar farms. Prime Minister Robert Abela and his finance minister Clyde Caruana told parliament gov- ernment's vision is for the country to become a clean energy hub in the Mediterranean Sea. At a meeting of energy ministers from around the Mediterranean held in Malta earli- er this year, the idea was floated of turning the Mediterranean Sea into the southern version of the North Sea where offshore wind farms abound. The dynamics are obviously different because the Mediterranean is a much deeper sea, requiring more expensive technology. In these circumstances, public and EU funds should be used to entice investors to tag along. The PMC also identified hydrogen pro- duction as a possible economic activity. The combined use of solar and wind energy to generate electricity and the infinite availability of seawater to be desalinated and hydrolysed, provides an option to create green hydrogen. The University of Malta has a preliminary research project focussing on the creation of a prototype mechanism to generate clean offshore hydrogen. This could be a long-term investment that truly puts Malta on the map of green energy. But the potential to develop the EEZ does not only concern energy. Aquaculture could also be developed outside territorial waters thus shifting this industry further away from our shores having a less detrimental impact on inshore water quality and coastal landscapes. The PMC also suggests the creation of arti- ficial islands. This has long been a pipe dream for different administrations. Creating artifi- cial islands is costly, especially at the depths around Malta, and what would make them economically viable is the type of project de- veloped on them. Exploiting the EEZ is not a magic wand to economic success. But just like several other Mediterranean countries have been exploiting their respective EEZs, Malta should not shy away from doing likewise. In the oil and gas exploration sectors – which were not included in the PMC since these are regulated in a different manner – Malta, unlike most of its neighbours has had a dismal track record of exploration. Not enough studies were done; not enough explo- ration licences were issued; and not enough wells were drilled over the years. The same mistake of not trying hard enough should not be repeated in other sectors being considered as part of the new drive to exploit the EEZ. Oil and gas exploration may have fallen out of fashion now, given the global drive to re- duce carbon emissions. But a sustained invest- ment in renewable energy should be a priority. It is also constructive that the legal frame- work proposed by government has the un- conditional backing of the Opposition. This message of unity is important in the eyes of investors and neighbouring countries. Exploiting our exclusive economic zone

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