Malta has welcomed the European Commission's declaration on the possibility of allowing small countries with special markets to apply for a derogation on emissions trading.

The Ministry for Resources said the Commission explained that in special circumstances small countries with regulated markets may be allowed to apply for a specific derogation from the obligation to auction 100 per cent of the emissions in the electricity-generation sector.

Speaking during the Environment Council meeting in Luxembourg, Resources Minister George Pullicino raised the need to reach an agreement on the EU's climate and energy package by the end of the year, adding Malta agreed with its general principles.

Mr Pullicino stressed the need for a stronger research system on the impact of genetically-modified organisms (GMO) on the environment. He insisted that companies that sought to place GMOs on the market should be bound to ensure the safety of GMO varieties and that these did not pose a risk to geographically sensitive areas.

He said Malta considered the cultivation of GMOs to be incompatible with Natura 2000 sites and other zones dedicated to traditional or organic cultivation.