‘Europe must introduce island mechanism that protects strategic freight routes’ – JetFreight CEO

JetFreight CEO Olvin Galea has stressed the need for the EU to introduce a permanent island mechanism that recognises essential connectivity, protects strategic freight routes and prevents unavoidable transport costs from being passed directly to island citizens. 

Mr Galea spoke of the European Union’s Emissions Trading System (ETS) and ETS 2. The ETS is the world’s first carbon market, launched in 2005, and remains one of the largest globally. In July, the European Commission presented its long-awaited proposal to revise the EU Emissions Trading System (ETS) Directive.

Recently, Joseph Bugeja, Chairman of the Association of Tractor and Trailer Operators, said that Malta’s logistics operators and consumers are already experiencing the economic impact of the European Union’s Emissions Trading System (ETS), and that the result is straightforward: higher transport costs that ultimately increase the price of almost everything imported into Malta.

Mr Galea echoed this statement, saying that the warning from Malta’s transport industry regarding ETS and ETS2 must be taken extremely seriously.

“Malta’s connection to mainland Europe is not a luxury, it is our economic lifeline. We cannot move freight by road or rail directly into the European market. Almost everything we import or export must first cross the sea, and this unavoidable journey is already carrying an additional ETS cost of approximately €1,000 per trailer on a return trip.”

ETS2 , he said, is expected to add a further layer of carbon-related costs from 2028, “affecting road transport and fuel used once our trailers reach mainland Europe.”

He explained that these costs will ultimately be reflected in the prices that businesses and families pay.

He stressed that this being about the question of fairness in Europe, highlighting that businesses on the European mainland can transport their goods by rail or on the road, but Maltese businesses have to pay for maritime crossings that cannot be avoided.

“Applying identical environmental charges to these entirely different geographical realities does not create equality it institutionalizes inequality,” he said.

He said that these charges operate like internal EU tariffs, and stressed the detrimental impact they can have on island economies, adding that they could be as damaging as import duties imposed by the USA on the EU.

He said that Malta, Cyprus and the island communities of Greece cannot be treated as though they possess the same transport alternatives as continental Europe. “We cannot build a railway to the mainland, and we cannot eliminate our dependence on shipping through policy decisions alone. I fully support responsible environmental action. However, climate policy must reduce emissions and not punish geography.”

Mr Galea recently urged the EU to back its recently unveiled island strategy with dedicated funding and support measures to safeguard freight links between islands and mainland Europe.