Malta's Efforts in Tackling Climate Change and Pollution

The Climate Action Authority (CAA), established under the Climate Action Act, 2024, plays a central role in coordinating and overseeing Malta's climate policies and initiatives. This article outlines Malta’s efforts in combating climate change across key sectors, including aviation, maritime, and road transport, while highlighting the vital role of the CAA.

1. Climate Action Authority: A Coordinated Effort to Combat Climate Change

The establishment of the Climate Action Authority (CAA) represents a significant step in Malta’s strategy to address climate change. This body ensures that all climate action efforts are coordinated under one framework, aligning national policies with international obligations, such as those under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.

Key Responsibilities of the CAA

• Setting Strategic Directions: The CAA Board advises the government on climate action, ensuring that all policies impacting climate change are effectively aligned.
• Establishing the Climate Action Fund: This fund supports climate initiatives through revenues from market-based measures, national greenhouse gas reduction projects, and external contributions.
• Promoting Climate Resilience: The CAA ensures that policies and projects are designed to withstand climate impacts, integrating adaptation measures across various sectors.
• Data Collection and Reporting: The authority collects and processes climate-related data to meet international reporting standards, providing transparency and accountability.

These functions ensure that Malta’s climate strategies are data-driven, allowing for the precise targeting of emission reductions.

2. Reducing Emissions in the Aviation Sector

The aviation sector in Malta is crucial for tourism and economic growth, yet it also contributes significantly to carbon dioxide (CO₂) emissions. The European Union’s Emissions Trading System (EU ETS) applies to aircraft operators within the European Economic Area (EEA) and is a vital tool for managing aviation-related emissions.

EU ETS Compliance for Aircraft Operators

Aircraft operators in Malta must comply with a structured system under the EU ETS:

• Monitoring Emissions: Operators must develop a monitoring plan approved by the CAA, ensuring accurate tracking of emissions from flights. This is a critical step for meeting Malta's climate targets.
• Annual Reporting: Operators are required to submit emissions reports annually, verified by independent bodies to ensure accuracy. For example, Air Malta PLC reported emissions and was allocated 52,948 allowances in 2024 and 33,595 in 2025.
• Surrendering Allowances: Based on the reported emissions, operators must surrender allowances to cover their carbon output. This mechanism incentivises the reduction of emissions and the adoption of more fuel-efficient practices.

Malta’s involvement in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) further extends these efforts, targeting emissions from international flights and ensuring compliance with global standards.

3. Tackling Maritime Emissions: EU ETS for Shipping

Malta’s maritime sector is a key economic pillar, given the island's strategic position in the Mediterranean. However, it also poses environmental challenges due to emissions from shipping activities. The EU ETS now includes maritime transport, compelling shipping companies to account for their carbon output.

Emissions Trading for Shipping Companies

Starting in 2025, the EU ETS requires shipping companies to surrender allowances corresponding to their CO₂ emissions, with methane (CH₄) and nitrous oxide (N₂O) to be included from 2026. This extension aims to regulate maritime emissions more comprehensively.

Key Obligations:

• Phased Surrender of Allowances: Shipping companies must meet progressive targets—40% of emissions in 2025, 70% in 2026, and 100% from 2027 onwards. This gradual approach allows time for adaptation while maintaining the commitment to emission reductions.
• Monitoring and Reporting: Companies must monitor emissions according to Regulation (EU) 2015/757, ensuring compliance with EU standards.
• Role of the CAA: The Climate Action Authority oversees the administration of these obligations, ensuring that shipping companies meet their reporting and allowance surrender requirements.

Example: A Maltese-registered shipping company completing EU voyages must submit an emissions report and surrender the appropriate number of allowances based on its CO₂ output for the previous year.

4. Addressing Emissions from Buildings and Road Transport

In addition to aviation and maritime sectors, Malta is preparing for the implementation of a new Emissions Trading System (ETS-2) targeting emissions from buildings, road transport, and certain industrial activities. ETS-2, set to commence in 2027, is crucial for managing emissions from fuel consumption in everyday activities.

ETS-2 Compliance Requirements

Regulated entities under ETS-2 must take specific steps to comply with the new system:

• Greenhouse Gas Emissions Permit: Entities are required to secure a permit from the CAA by January 1, 2025, authorising them to monitor their greenhouse gas emissions.
• Monitoring and Reporting: Emissions from fuel combustion in buildings and transport must be tracked throughout the year, with annual reports submitted to the CAA.
• Surrendering Allowances: Similar to other sectors, entities must surrender allowances equivalent to their emissions, incentivising reductions.

From 2028, regulated entities will also need to report the costs associated with these allowances, adding transparency to the economic impact of climate measures.

5. Malta’s National Greenhouse Gas Inventory: A Data-Driven Strategy

The Climate Action Authority is tasked with compiling Malta’s annual Greenhouse Gas (GHG) Inventory. This inventory is a key tool for assessing the country’s progress in reducing emissions and identifying areas that require further intervention.

Scope of the GHG Inventory

• Direct Greenhouse Gases: The inventory tracks emissions of CO₂, CH₄, N₂O, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆), and nitrogen trifluoride (NF₃).
• Sectoral Breakdown: Emissions are categorised into five main sectors: Energy, Industrial Processes and Product Use (IPPU), Agriculture, Land Use and Forestry (LULUCF), and Waste Management.

Example: The energy sector, responsible for emissions from fossil fuel use in transport and electricity generation, remains a significant contributor to Malta's GHG profile. The CAA uses this data to shape targeted emission reduction policies.

Global Warming Potential (GWP) Analysis

Each greenhouse gas has a different GWP, indicating its ability to trap heat in the atmosphere relative to CO₂. Methane, for instance, has a GWP of 25, making it a significant target for reduction in the agriculture sector, which includes livestock emissions and crop cultivation.

6. Investing in Renewable Energy and Reducing Fossil Fuel Use

Malta’s transition from fossil fuels to renewable energy sources forms a critical part of its climate strategy. The shift from heavy fuel oil to natural gas in power generation has already led to a substantial reduction in emissions.

Key Renewable Energy Initiatives

• Solar Power Investment: With over 300 sunny days each year, Malta has capitalised on solar energy, installing photovoltaic systems across residential and commercial buildings.
• Green Bonds and ESG Platform: The introduction of green bonds has provided funding for renewable energy projects and other environmentally friendly initiatives. These bonds support Malta’s transition towards cleaner energy and promote investment in sustainability.

Example: A solar panel installation in a Maltese household can produce up to 4,000 kWh annually, reducing the household's carbon footprint and reliance on fossil fuel-based electricity.

Path Forward: Malta’s Drive for a Greener Tomorrow

Malta’s efforts to tackle climate change and pollution are driven by a clear framework of policies, coordinated by the Climate Action Authority. By extending the EU ETS to aviation and maritime sectors, and preparing for ETS-2, Malta is targeting key sources of emissions. The CAA's focus on data transparency and international compliance further strengthens the country’s climate strategy.

Through investment in renewable energy, the development of a Climate Action Fund, and engagement with stakeholders, Malta is working towards a sustainable future. Despite being a small island nation, Malta's proactive approach and alignment with international standards make it a noteworthy example of climate commitment.