Labour MEPs Alex Agius Saliba, Daniel Attard and Thomas Bajada have proposed a series of amendments to the European Union's Emissions Trading System (ETS), seeking to reduce the financial burden on Malta and Gozo while securing greater support for cleaner transport and energy, the Labour Party said in a statement.

The proposals, submitted on behalf of the Labour Party delegation in the European Parliament, cover maritime transport, aviation, energy production, waste management and access to decarbonisation funding.

They also include measures relating to connectivity between Malta and Gozo.

The amendments follow discussions with affected industries and entities, as well as with the European Commission and European political parties, according to the Labour delegation.

"For Malta and Gozo, maritime and air connectivity is crucial," Thomas Bajada and Daniel Attard said. They argued that the movement of essential goods, including food, medicines and raw materials, as well as the wider economy, depends on reliable transport links.

The MEPs said environmental targets should be accompanied by measures that take island-specific circumstances into account and support operators investing in cleaner transport technologies.

One of the main proposals concerns the imbalance between Malta's imports and exports. The delegation noted that vessels can arrive in Malta carrying full loads but leave with considerably less cargo.

Under the proposed amendment, for certain direct routes between EU ports and ports in island member states, ETS obligations would be calculated according to the vessel capacity actually used for cargo on each voyage.

The Labour MEPs said this would mean ETS charges for island member states would be linked to the cargo transported rather than each individual voyage.

The proposals would also reserve at least 20% of resources under the maritime sector support mechanism for small and medium-sized enterprises, short-sea shipping operators, ferries and vessels serving islands and peripheral regions, including public service routes.

The funding would support vessel renewal and the adoption of cleaner fuels and technologies while maintaining passenger and freight connections.

The amendments would further expand the range of sustainable maritime technologies eligible for support, increase aid for routes serving islands and extend eligibility to certain routes currently covered by ETS derogations.

The delegation is also proposing measures concerning harbour tugs, which provide services including towing and assisting vessels during berthing manoeuvres. The MEPs want these operators to have access to support on a fair and proportionate basis.

For smaller vessels providing essential connections between islands or between islands and the mainland, the proposals would simplify certain monitoring and reporting requirements while retaining the environmental objectives of the ETS.

The Labour MEPs are also calling for the existing derogation for connections to small islands to be extended until 2040, together with direct ETS funding to support the decarbonisation of the fleets involved.

They specifically highlighted the Malta-Gozo connection, arguing that the current derogation and any extension do not fully address what they describe as the structural and permanent limitations associated with Malta's double insularity.

The delegation said a more permanent derogation would therefore be preferable.

On aviation, the proposed amendments would extend support for sustainable aviation fuels until 2040 and significantly increase the quotas allocated for this purpose.

In some circumstances, the MEPs are proposing that support cover the full remaining price difference between sustainable and conventional fuels, rather than the 30% currently proposed.

They are also seeking more flexible arrangements allowing airlines to access the support, alongside safeguards intended to ensure that the funding delivers environmental benefits.

The proposals also seek changes to the way European funding for emissions reductions is accessed.

The MEPs want electricity generation facilities to be eligible for financial assistance from the Bank for Industrial Decarbonisation. They are also proposing dedicated support for smaller projects and technical assistance for countries that have benefited relatively little from the Innovation Fund.

The amendments would allow ETS revenue to contribute to economy-wide emissions reductions on islands, while providing transitional arrangements for new waste management infrastructure.

Other proposals seek to prevent the same emissions from being charged twice under European and international systems, as well as provide support to workers and communities affected by the transition.

The amendments were submitted within the European Parliament's Environment Committee, which is the lead committee for the legislation, as well as the Transport Committee. Bajada and Attard are members of both committees.

The proposals will still have to be agreed during negotiations within the European legislative process before they can take effect.