Shipping 2026

MALTA Trends and Developments Contributed by: Ann Fenech, Adrian Attard and Daniel-Luc Farrugia, Fenech & Fenech Advocates

Obligations under the EU Emissions Trading System (“EU ETS”) Directive – a core pillar which affects com - mercial ships calling in EU ports – are intensifying, as the scheme is fast approaching full application to maritime transport. In fact, from 1 January 2026, shipping companies were required to surrender allow - ances covering 100% of verified CO₂-equivalent emis - sions falling within the scope of the Directive. In this context, Malta has actively positioned itself as a proactive jurisdiction, offering practical support to shipping companies through the establishment of Holding and Trading Accounts under the EU ETS. Over the last couple of years, the Maltese National Administrator has also strengthened its administrative capacities by allocating additional resources, enhanc - ing the Registry’s ability to process account applica - tions more efficiently. This administrative support has become increasingly important for ship-owners, managers, brokers and other stakeholders seeking to comply with EU ETS obligations. Stakeholders who have already established and are operating Holding Accounts are therefore well placed to manage their compliance requirements, including the purchasing and surrendering of allowances in line with the Directive. In the authors’ view, the delayed implementation of the IMO’s NZF or any other global standard will for the time being reinforce, rather than diminish, the stra - tegic importance of well-prepared EU maritime hubs such as Malta during this transitional phase of the energy transition, particularly for stakeholders whose vessels call at any EU ports. FuelEU: Malta’s Onshore Power Supply Capabilities The FuelEU Maritime Regulation, which has effec - tively been in force since 1 January 2025, introduced stringent measures to reduce the maritime industry’s greenhouse gas (GHG) emissions. As part of the EU’s Fit for 55 agenda, the Regulation aims to cut fuel car - bon intensity by 55% by 2030, comparable to 1990 levels. It mandates the adoption of renewable and low-carbon fuels, with a “well-to-wake” approach, accounting for emissions throughout the fuel life cycle.

Ships must progressively reduce GHG intensity per unit of energy consumed, beginning with a reference value of 91.16 grams of CO₂-equivalent per mega - joule, reduced incrementally over time. Another key requirement mandates vessels moored at TEN-T Ports for over two hours to connect to onshore power supplies (OPS) or equivalent zero-emission technologies. The Regulation also introduces flexibil - ity mechanisms, enabling companies to bank surplus reductions, borrow future credits (with penalties), or pool excess compliance for trade. These tools provide pathways for efficient compliance management. Malta has been making several inroads to strengthen its position as a leader in maritime decarbonisation by investing in shore-to-ship infrastructure, positioning itself as a jurisdiction promoting compliance with the FuelEU Regulation. The inauguration of Malta’s first shore power facility within the Grand Harbour, a natural port that accom - modates some of the largest cruise liners in the world year-round, marked the Mediterranean’s first opera - tional shore-to-ship facility. This commitment to sus - tainability has also been echoed at the Malta Freeport, a leading trans-shipment hub within the Mediterra - nean region, where construction of a new OPS facility is ongoing. Malta’s proactive efforts towards achieving this goal could undoubtedly assist and support shipping com - panies in meeting some of their FuelEU obligations. In the authors’ view, Malta’s approach so far could position Maltese ports as an attractive option (in the Mediterranean region) for owners seeking to mitigate the high costs associated with the Regulation. Sanctions Outlook: More Restrictions Likely to Impact Shipping The shipping sector remains highly sensitive to geo - political developments. Given that the start of the year has already been marked by an exceptional level of volatility with direct implications for global maritime trade, it is not unreasonable to expect that 2026 may bring further unexpected challenges in this respect.

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