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Singapore sets tax incentives for greener ships

Singapore’s Maritime and Port Authority (MPA) will provide incentives on certain fees and taxes for Singapore-flagged ships committed to slashing emissions beyond what is required by the International Maritime Organization (IMO).

In a circular updating its Green Ship Programme (GSP), the MPA announced the discounts starting from May 1 until December 31, 2024. Vessels exceeding the requirements of IMO’s Marpol Annex VI Phase 3 Energy Efficiency Design Index (EEDI) targets by 10% or more will secure a 50% reduction on initial registration fees (IRF) and a 20% rebate on the annual tonnage taxes (ATT). Already registered ships that comply will also get a 20% rebate on the ATT.

Meanwhile, ships that use liquified natural gas (LNG) or fuels with a conversion factor lower than LNG as their primary fuel, such as bio-LNG, bio-methanol, and bio-ethanol, will get a 75% and 50% discount on the IRF and ATT, respectively.

The GSP will also recognise Singapore-flagged ships that use zero-carbon fuels such as ammonia and hydrogen by not requiring them to pay registration fees or tonnage taxes.

“The key principle of the GSP is to reward shipowners who voluntarily adopt solutions that enable ships to exceed environmental regulatory standards set by the IMO,” the MPA circular said.

The Singapore Registry of Ships is the world’s fifth-largest ship registry, with a fleet of more than 4,400 vessels on its register. To qualify, owners have to submit a copy of the International Energy Efficiency (IEE) Certificate along with its accompanying supplement as proof that the attained EEDI of the ship exceeds IMO’s EEDI Phase 3 requirements by 10% or more for that particular ship type and size.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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