The Association of Truck and Trailer Operators (ATTO) on Tuesday welcomed the European Commission's efforts to address some of the concerns raised by island Member States in its proposed reform of the EU Emissions Trading System (ETS).

The reduction of the transhipment threshold from 65% to 50%, together with additional anti-evasion safeguards, demonstrates a better understanding of Malta's unique geographic realities and the importance of maintaining Malta Freeport's competitiveness,ATTO said.

However, the current package remains incomplete. While the measures announced represent progress for Malta's transhipment sector, they do not yet provide the necessary safeguards for the wider logistics ecosystem, particularly the international trailer transport sector which facilitates the movement of approximately 55,000 trailers annually and ensures Malta's continued supply of goods.

"The European Commission's efforts show that the realities of small island states like Malta were always real and that now, these are being acknowledged. However, these efforts remain only part of the solution because international trailer operators are an equally essential component of Malta's economic resilience and must not be overlooked in the ongoing ETS reform process," ATTO Chairman Joseph Bugeja said.

"As an island economy with no fixed link to mainland Europe, Malta depends entirely on maritime connectivity for the movement of goods and our international trailer operators continue to have a critical role in Malta's supply chain, ensuring the daily movement of essential goods, supporting businesses and maintaining the island's connection with the European Single Market," he said.

"However, a structural disadvantage that remains unaddressed is that around 60% of trailers arriving in Malta with cargo must subsequently be repositioned empty to the Port of Genoa before their next journey. This requires a sea voyage of approximately 700 nautical miles, yet these empty movements continue to attract ETS-related costs. When combined with the Bunker Adjustment Factor (BAF), the additional cost can reach approximately €1,000 for a single round trip trailer movement between Malta and Genoa."

"These are unavoidable costs arising from Malta's geographic reality and lack of alternative transport options. They directly affect the competitiveness of Maltese businesses and ultimately increase costs throughout the supply chain," he added.

ATTO said it has consistently maintained that decarbonisation policies must recognise the structural disadvantages faced by island economies.

"Malta cannot be expected to carry the same burden as mainland Member States when alternative transport solutions simply do not exist. A one-size-fits-all approach risks weakening Malta's competitiveness, increasing costs for businesses and consumers, and placing Maltese operators at a disadvantage within the Single Market."

ATTO therefore called on the Maltese Government, Malta's representatives in the European Parliament and the European Commission to ensure that the final ETS revision includes targeted measures to safeguard the international trailer transport sector.

"The Commission has taken an important step forward in recognising Malta's transhipment challenges. The next step must be to ensure that the full logistics chain is protected. Malta's connectivity depends not only on Freeport, but also on the international trailer operators that keep the country supplied and connected to Europe," concluded Joseph Bugeja.