The European Union's Emissions Trading System could divert maritime and aviation traffic to non-EU countries without delivering climate benefits, Energy Minister Miriam Dalli warned during a meeting of the EU Environment Council.

Ministers discussed the proposed revision of the ETS, with Dalli stressing that the framework must take into account Malta's reliance on maritime transport and aviation for connectivity, essential supplies and economic activity.

Dalli said Malta supported a strong and effective European system to reduce emissions and achieve the EU's common climate goals. However, she stressed that the revised framework must remain predictable while providing all Member States with a practical and realistic pathway towards decarbonisation.

"We want the EU ETS to deliver real emissions reductions while giving every Member State the means to contribute, taking into account our different national circumstances," Dalli said.

Malta is working with a group of like-minded Member States that share the principle that the environmental integrity of the ETS must be safeguarded while avoiding negative impacts on economic competitiveness.

Among Malta's priorities are safeguarding connectivity and security of supply, addressing carbon leakage and ensuring sufficient flexibility and support to make the transition fair and effective.

In this context, carbon leakage refers to maritime and aviation traffic being diverted to third countries without delivering corresponding climate benefits.

Dalli emphasised that tackling climate change and safeguarding economic competitiveness must go hand in hand, arguing that European climate policies should reflect the different circumstances of Member States.