Issue link: https://maltatoday.uberflip.com/i/1544495
7 maltatoday | SUNDAY • 19 APRIL 2026 NEWS Aviation registry growth behind rise in carbon emissions RECENT media reports have raised alarm, suggesting that Malta is the only EU member state where greenhouse gas (GHG) emissions intensity has increased since 2013. But while Eurostat data ap- pears to support this narrative, a report by Aaron G. Grech, chief officer of the Economics Division at the Central Bank of Malta, argues this conclusion is a "statistical illusion". He says it is driven by methodology rath- er than an actual deterioration in Malta's environmental per- formance. According to Eurostat data, Malta's greenhouse gas (GHG) emissions intensity has risen by 17% since 2013. This report- edly makes Malta the only EU member state to have experi- enced an increase in emissions intensity during this period. The core of the confusion lies in how different interna- tional bodies define national emissions. Eurostat applies the "residence principle," which attributes emissions to Malta based on where a business is registered. If a company is Maltese-res- ident, its global emissions are included in the national total, regardless of where the activity physically takes place. In contrast, the United Na- tions (UN) Framework Con- vention on Climate Change uses a "territorial approach," which counts only emissions physically occurring within Maltese territory. When as- sessed through this lens, Mal- ta's emissions have risen only modestly despite significant economic growth, suggesting a degree of decoupling between growth and pollution. Under the UN-based measure, Malta's emissions intensity by 2023 had improved by nearly a quarter compared to 2018 levels. By 2024, when adjusting for aviation activity occurring outside Maltese airspace, Mal- ta's real emissions intensity reached a historic low, standing at roughly a quarter of its 2005 level. The aviation factor A central reason for this di- vergence is Malta's interna- tional aircraft registry. By the end of 2024, 913 aircrafts were registered under the Maltese flag, and under Eurostat's res- idence-based accounting, the fuel burned by these aircraft— even on flights between South America and Asia—is attribut- ed to Malta. However, only 4.38% of flights operated by Malta-registered aircraft actually entered Mal- tese airspace in 2024. This means the vast major- ity of emissions counted are generated abroad, not within Malta. Once these internation- al aviation operations are ex- cluded, the apparent spike in emissions disappears. Adjusted data shows Malta's emissions intensity continued to decline after 2018, reaching a historic low by 2024—around a quarter of its 2005 level. The CBM report noted a gen- erally positive environmental trajectory, supported by two major structural shifts. The transition from heavy fuel oil to natural gas, along with the interconnector to the Europe- an energy grid, reduced ener- gy-sector emissions from 53% of the national total in 2012 to just 25% by 2018. Concurrently the Maltese economy has increasing- ly shifted toward high-value, low-emission services such as gaming and computer pro- gramming, which generate sub- stantial economic output with a very small carbon footprint. Remaining hurdles Despite the broader narra- tive of rising intensity being challenged, the report warns that Malta still faces impor- tant policy gaps. The country is expected to fall short of EU "effort-sharing" targets in spe- cific sectors, including domes- tic transport, agriculture, waste management, and construc- tion. The paper also stresses that misinterpreting these complex indicators can fuel "sensation- alism" and mislead both the public and investors. If climate policies are perceived as inef- fective despite delivering re- sults, resistance to further nec- essary measures may increase. Ultimately, the Central Bank's findings suggest that Malta's economy is not becoming more emissions-intensive in real terms. Rather, its role as a glob- al aviation registry hub has in- advertently distorted headline emissions data. To support a credible transi- tion toward climate neutrali- ty by 2050, the report calls for clearer communication and more nuanced, evidence-based public discourse to preserve trust in Malta's environmental objectives. Reporting by James Debono A Central Bank of Malta discussion paper indicates that Malta's apparent rise in carbon emissions is largely driven by its growing international aircraft registry, which skews Eurostat figures By the end of 2024, 913 aircrafts were registered under the Maltese flag, and under Eurostat's accounting, the fuel burned by these aircraft, irrespective of where the flights took place, is attributed to Malta. However, only 4.4% of flights operated by Malta- registered aircraft actually entered Maltese airspace in that year