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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 11.01.2024 T he new environmental tax on ship- ping that came into force on 1 Jan- uary will lead to higher transport costs for all imports and exports by sea. The extension of the Emissions Trading Scheme (ETS) to the mari- time sector was to be expected as the EU transitions to a green economy. Reducing carbon emissions that con- tribute to global warming is key to ad- dressing climate change. But in achieving this noble aim, the EU must be sensitive to the particu- larities of certain countries and com- munities. If going green means added financial pressures on families and small and medium enterprises, the inevitable outcome will be pushback that can have dire political conse- quences. The carbon tax is unlikely in the short term to bring about significant change in industry practices but is very likely to create undue inflationary pressures on families and businesses. This is especially so for an island economy like Malta, which depends on sea transport for its trade. Writing in Business Today, Joseph Bugeja, the chairperson of ATTO, an association of tractor and trailer oper- ators, argues that transport operators in Malta cannot be put on the same level as those operators who are not burdened with geographic and com- mercial disadvantages of an island state. "The impact of this Directive is ex- cessively disproportionate when com- pared to our European peers," Bugeja writes. He says that whilst this tax applies across the EU it mostly impacts coun- tries like Malta which rely solely on maritime connections for their essen- tial imports, exports and economic activity. Bugeja clearly states that the EU's one-size-fits-all policy in this case punishes Malta disproportionately. But he also sounds the warning that this tax could impact the Malta Free- port in Birżebbuġa and Valletta Gate- way Terminal in the Grand Harbour. These two ports are pillars of the economy that provide fundamental connections for the transportation of essential goods. While several ship owners and op- erators have taken initiatives to op- erate vessels with more sustainable engines, the transition has not been fast enough. The EU could have cre- ated fiscal incentives to encourage more shipping companies to invest in greener technology before wielding the stick. The outcome of the ETS in the short term is unlikely to yield ap- preciative reductions in carbon emis- sions but will punish island economies like Malta. This is unjust. Unfortunately, no exemptions were negotiated for Malta when the EU directive was approved by qualified majority voting. This leader joins the appeal made by Bugeja for all stakeholders in the sec- tor to put up a united front in address- ing the challenges posed by the ETS Directive to ensure an outcome where Malta's unique interests are duly rep- resented. This also applies to the Maltese po- litical class, since unity is a sine qua non, where the national interest is at stake in international fora. There is, after all, consensus between the gov- ernment and the Opposition on the deleterious impact of the ETS and this should translate into a united front. Bugeja says Malta's response to the ETS Directive requires a "strategic, non-politicised approach" that recog- nises the unique challenges faced by Malta. This leader supports this position. Malta should press the European Commission to monitor the impact of the ETS and adjust its course accord- ingly, especially in those countries and communities that are disadvan- taged by geography. An unjust carbon tax and the national interest n August 2023, the seasonally adjusted volume of retail trade decreased by 1.2% in the euro area and by 0.9% in the EU, compared with July 2023, according to estimates from Eurostat, the statistical office of the European Union. In July 2023, the retail trade volume decreased by 0.1% both in the euro area and in the EU. In August 2023 compared with August 2022, the calendar adjusted retail sales index decreased by 2.1% in the euro area and by 2.0% in the EU. In the euro area in August 2023, compared with July 2023, the volume of retail trade decreased by 3.0% for automotive fuels, by 1.2% for food, drinks and tobacco and by 0.9% for non-food products. In the EU, the volume of retail trade decreased by 2.4% for automotive fuels, by 0.9% for food, drinks and tobacco and by 0.6% for non-food products. Retail Price Volume DID U KNOW?

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