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MBB warns full ETS carbon charge on island routes will only raise prices

MBB warns full ETS carbon charge on island routes will only raise prices

MBB leads business delegation to Brussels, arguing that full EU ETS charges on island routes without alternatives will not cut emissions but raise costs.

EV
Editorial Staff13 November 2026

The Malta Business Bureau has urged EU policymakers to support investment in port electrification, cleaner maritime fuels and water and energy resilience, broadening its Brussels agenda beyond the immediate cost of emissions trading.

The recommendations were presented during a 19-member business delegation’s visit to the EU institutions, organised as the bureau marks 30 years of representing Maltese business interests.

“Around 70 per cent of Malta’s imports arrive on the Italy to Malta line so the maritime EU ETS reaches Maltese businesses and households through freight rates MBB supports the ETS and its 2030 and 2040 objectives. Our concern is proportionality: on a route with no alternative mode, a full carbon charge cannot change behaviour, it can only raise prices.”

MBB policy executive Juliette Mizzi proposed stronger coordination through an EU Blue Economy Envoy, alongside further cooperation on youth and skills development through Global Gateway.

The bureau’s policy programme also covered sustainable tourism and the competitiveness of transport links serving island economies.

These investment proposals accompanied its request for partial ETS relief on eligible maritime routes and flights. The two strands address different needs: limiting pressure on essential connectivity while supporting the infrastructure and technology required for decarbonisation.

Vice president Sergio Vella said the bureau’s experience had reinforced the importance of engaging early in European policymaking and continuing that work as proposals moved through different institutions.

The delegation met European Parliament President Roberta Metsola, Commissioner Glenn Micallef and Malta’s Permanent Representative to the EU, Neil Kerr. It also held discussions with European business organisations and Maltese MEPs.

Participants represented activities including logistics, aviation, tourism, architecture and professional services, reflecting the range of businesses affected by transport and resilience policy.

The MBB represents the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association in Malta and Brussels.

Its recommendations remain requests for policy action and investment support. The commercial opportunity will depend on whether they translate into suitable EU programmes, financing mechanisms and projects that Maltese businesses can access.