Shipping 2025

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

including the purchasing and surrendering of allowances in line with scheme requirements. Presently, the ETS Directive is in the second phase of the three-year phase-in period, where, from 2025, shipping companies must surren - der allowances for 70% of verified greenhouse gas (GHG) emissions by 30 September 2026. Therefore, the authors expect that in 2025 ship - ping stakeholders will continue to show interest in establishing and operating holding accounts under the Maltese Union Registry. FuelEU: the Advantages of Malta’s Onshore Power Supply Capabilities The FuelEU Maritime Regulation, effective 1 January 2025, introduces stringent measures to reduce the maritime industry’s GHG emissions. As part of the EU’s Fit for 55 agenda, the Regu - lation aims to cut fuel carbon intensity by 55% by 2030, compared 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-equiva - lent per megajoule, reduced incrementally over time. Another key requirement mandates vessels being moored at Trans-European Transport Net - work (TEN-T) ports for over two hours to connect to onshore power supplies (OPS) or equivalent zero-emission technologies. The Regulation also introduces flexibility mechanisms, enabling companies to bank surplus reductions, borrow future credits (with penalties) or pool excess compliance for trade. These tools provide path - ways for efficient compliance management.

Malta has reinforced its position as a leader in maritime decarbonisation by investing in shore- to-ship infrastructure, positioning itself as a prime jurisdiction for FuelEU Regulation com - pliance. The inauguration of Malta’s first shore power facility at Grand Harbour, a natural port that accommodates some of the largest cruise lin - ers in the world year-round, marked the Mediter - ranean’s first operational facility last July. This commitment to sustainability extends to the Malta Freeport, a leading trans-shipment hub, where construction of a new OPS facility began in October 2023 (with completion expected in 2025). The discussed proactive approach taken by Malta coupled with its geographic location could make it a key jurisdiction in supporting shipping companies in meeting their FuelEU obligations, while offering an attractive option to help curb costs. Sanctions: Maintaining Vigilance To date, the EU has adopted 16 sanctions pack - ages, imposing prohibitions, restrictions and embargoes on various industries, with a par - ticular focus on the shipping and energy sectors. The introduction of the Russian oil price cap, the ban on Russian vessels into EU ports, and the reporting obligations in connection with the sale of tanker vessels by EU vendors to non-EU pur - chasers are just a few of the sanction measures introduced. Each new round of sanctions which touches upon any aspect of shipping brings with it a myriad of legal and operational issues for most ship-owners, charterers, financiers and shipping operators. From a Maltese perspective, the applicable sanctions affect not just Maltese ship-owners and Malta-flagged vessels but also any operator or vessel trading within Maltese ter - ritorial waters.

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