The ships need a minimum score based on fuel consumption and emissions
In an attempt to cut greenhouse gas emmissions, the Indian government will introduce a discount for all ‘green’ ships docking at the country’s ports. The ships need a minimum score based on fuel consumption and emissions including sulphur di-oxide and carbon-di-oxide.
Green is now the new buzz at the shipping ministry. In an endeavour to cut down on greenhouse gas (GHG) emissions and limit damage to coastal life, the ministry is planning to introduce a discount for ‘green ships’ that enter Indian ports.
This is a prevalent practice at some major ports such as Hamburg in Germany, Antwerp in Belgium and Panama. The ministry has proposed offering a rebate of 25% on vessel related charges on such ships.
To qualify for a discount a ship needs to score 30 or more points on the International Environmental Ship Index, which rates vessels on a scale from 0 to 100 based on factors such as fuel consumption and emissions including sulphur dioxide and carbon dioxide.
The minimum qualifying score at Indian ports, for availing the discount, is yet to be finalised. The proposal forms part of the discussions of the working group on shipping and inland water transport set up by the Planning Commission for the 12th Plan period. “The exact definition of green ships for India will be worked out after the details are discussed by the group,” a senior government official told The Indian Express.
According to experts, energy-efficiency and sustainability are presently the centre of attention in the marine sector. The market for ‘green’ ships is booming and governments and companies are investing more for newly built vessels and also for improving existing ships to make them ‘greener’. This is also significant for fuel accounts for a third of the total costs and cutting down fuel consumption will lead to savings, in addition to making it ‘greener’.
Around 10% ships entering India are ‘green ships’. According to official estimates, 31,000 vessels dock at Indian ports. With vessel related charges amounting to Rs 12.97 lakh per ship, the total revenues earned work out to Rs 4,000 crore. The 25% rebate proposed, will imply a revenue loss of Rs 101 crore annually.
“We have proposed that the liability of Rs 101 crore is shared by state and central governments,” the official said.
Source : Indian Express
