PN MEP Peter Agius has proposed a temporary 50% reduction in the European Union's Emissions Trading System (ETS) charges on air and maritime transport to and from Malta, arguing that the current system places a disproportionate financial burden on island states, an EPP statement said on Tuesday.

Agius tabled 86 amendments during the European Parliament's plenary session in Strasbourg, proposing an "Islands Derogation" that would remain in place until 2040 and could save Malta an estimated €60 million annually.

The ETS currently imposes additional charges on air and maritime transport, which Agius argued do not adequately account for Malta's dependence on these services or their impact on the cost of living.

"Right now, Malta is paying a disproportionate price for all sea and air transport through an additional EU ETS tax which, unfortunately, does not take into account the total dependence of islands such as Malta on sea and air transport, nor the impact of the ETS on the cost of living on islands," Agius said.

He proposed an Islands Derogation to take into account the unique additional burdens faced by islands, including a 50% reduction in the applicable ETS tax on all air and maritime transport to and from Malta.

The statement referred to recent comments by the Association of Tractor and Trailer Operators (ATTO) and the Malta Chamber, which indicated that approximately 67,000 containers are transported by sea to and from Malta annually.

According to ATTO, the ETS charge amounts to €530 per trailer or container, in addition to existing freight and fuel costs, which already contribute to the expense of transporting goods to and from Malta.

The statement also cited figures from the Central Bank of Malta indicating that the ETS places an additional annual burden of €88 million on flights to and from Malta.

Under Agius's proposed amendments, the 50% reduction would apply temporarily to air and maritime transport involving islands until 2040, with the derogation gradually phased out over that period.

The proposals also include measures intended to encourage greater direct investment in environmentally sustainable maritime transport, alongside increased transparency over how ETS revenues are used.

"I am calling for a partial and temporary 50% derogation from the existing ETS tax because the Maltese people want to play their part in Europe's efforts to fight climate change. We want to support measures to save the planet for our families and future generations, but these efforts must be proportionate in their impact on islands," Agius said.

He added that the proposed gradual phase-out was intended to encourage transport operators and public authorities to invest in greener transport solutions before 2040.

"This balanced approach will allow me to build support among fellow MEPs from other Member States for an 'Islands Derogation' that could save Malta €60 million a year in costs that feed into the cost of living," he said.

Agius said he had been raising concerns about the impact of the European Green Deal on Maltese consumers since 2021, arguing that Malta had failed to secure adequate consideration of its circumstances when the ETS rules were adopted.

"Since being elected as an MEP, I have made it my mission to correct this mistake. My amendments are now gaining support from several MEPs in the European Parliament, and I am confident that we can make progress for Malta in the coming weeks," Agius concluded.