Issue link: https://maltatoday.uberflip.com/i/1514336
11 OPINION 11.01.2024 Navigating an unjust ETS directive Joseph Bugeja Joseph Bugeja is the newly appointed Chairman of ATTO which currently represents 80% of operators of tractors and trailers in Malta T he EU's Emissions Trad- ing System Directive more commonly referred to as the ETS Directive has sparked concerns among im- porters and exporters in Malta. e challenges of this new EU tax have started surfacing more prominently this month as the directive came into force on the 1st of January of this year. ese concerns are more than legitimate. Importers and exporters not only have to deal with inflation- ary costs and COLA increases which already have a bearing on their prices but given that most of their road operations are based in Europe, they will also need to factor in the eventual toll increases and other inflationary increases there. erefore, this new environ- mental tax on shipping will una- voidably lead to further increas- es in the price of transport of all imports and exports by sea. Moreover, there also needs to be a recognition of the impact that this tax will have on both Malta Freeport and Valletta Grand Harbour's Ro-Ro opera- tions, two pillars of our economy and fundamental connections for the transportation of essen- tials. Another concern is that whilst this tax applies across the EU, re- ally and truly, it mostly impacts countries like Malta which rely solely on maritime connections for their essential imports, ex- ports and economic activity, a fact exacerbated by the recent pandemic. Malta would have been stranded if not for the weekly maritime connections. Let us not forget that Malta's international trailer operators have always played a vital role in connecting the island to global ports. Currently, Maltese oper- ators are handling an average of 1300 trailers weekly. In principle, we are not against the ETS Directive. We under- stand that the maritime sector, just like other sectors, is also a polluter which should be incen- tivized to start operating with more environmental responsi- bility. In fact, it is already posi- tive that several forward-looking ship owners and operators have already taken various initiatives to operate vessels with more sus- tainable engines. However, what we are saying is that transport operators in Mal- ta cannot be put on the same lev- el as those operators who are not burdened with our geographic and commercial disadvantag- es. e impact of this Directive is excessively disproportionate when compared to our Europe- an peers. At the EU level, this issue falls under Qualified Majority Voting (QMV) making it a delicate dip- lomatic matter. As such, there needs to be a structured ap- proach to ensure a level playing field by leveraging Malta's rep- utable position in international organizations such as the Inter- national Maritime Organisation, where Malta, as the largest Eu- ropean Flag and the sixth largest Flag in the world, already enjoys a very high reputation. e growth and success of Mal- ta's Flag came from the fact that this sector was never politicized. erefore, this is how we need to face this new challenge – by not politicising it and by tackling it professionally and pragmatically. Today, more than ever, all stakeholders in this sector need to put up a united front in ad- dressing the challenges posed by this ETS Directive to ensure an outcome where Malta's unique interests are duly represented. Secondly, there needs to be due engagement with all those spe- cialized individuals at EU level, including Malta's team of MEPs whilst seeking more collabora- tion with the International Mari- time Organisation. As the newly appointed Chair- man of ATTO, our association will remain committed to help- ing address the challenges that our country will be facing due to the ETS Directive in fact, we have already started engaging in discussions and making our as- sociation's views known at both local and international levels. Our collective argument needs to centre around the irrefutable fact that Malta's particular cir- cumstances are not compatible with a one-size-fits-all policy es- pecially when this matter is of a national interest. Malta's response to the ETS Directive requires a strategic, non-politicized approach that recognizes the unique challeng- es faced by our island nation. By fostering a collaborative sce- nario, we can leverage Malta's influence in international mari- time circles and ensure that the impact of the ETS Directive on Malta is mitigated. Protecting Malta's interests is in the nation- al interest and ultimately in the interests of businesses and Mal- ta's consumers. Malta's international trailer operators have always played a vital role in connecting the island to global ports. Currently, Maltese operators are handling an average of 1300 trailers weekly.