MPA Singapore published a Circular, providing an update on the details of the Green Ship Programme (GSP) for Singapore-flagged ships, announcing green incentives.
The key principle of the GSP is to reward ship owners who voluntarily adopt solutions that enable ships to exceed environmental regulatory standards set by the IMO.
The GSP started on 1 July 2011 and based on the last revision in 2019, the GSP currently runs from 1 January 2020 until 31 December 2024. With effect from 1 May 2022 until 31 December 2024, MPA will provide incentives to Singapore-flagged ships which:
- Exceed IMO’s MARPOL Annex VI Phase 3 EEDI requirements by 10% or more;
- Adopt engine capable of using low-carbon fuels with CF (conversion factor between fuel consumption and CO2 emission) equivalent to or lower than LNG (i.e. (bio)-LNG, (bio)-methanol, (bio)-ethanol);
- Adopt engine capable of using zero-carbon fuels (e.g. ammonia, hydrogen).
Exceeding IMO’s MARPOL Annex VI EEDI requirement
A Singapore-flagged ship that exceeds the requirements of IMO’s MARPOL Annex VI Phase 3 EEDI by 10% or more will enjoy a 50% reduction on the Initial Registration Fees (IRF) under both normal registration and Block Transfer Scheme (BTS) during the registration of the ship. It will also enjoy a 20% rebate on Annual Tonnage Tax (ATT) payable every year.
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A ship that is already registered with the Singapore Registry of Ships (SRS) which adopts energy efficient ship design that exceeds the requirements of IMO’s MARPOL Annex VI Phase 3 EEDI by 10% or more can also take part in this programme, but will only enjoy the 20% rebate on ATT payable every year until 31 December 2024.
For registration anew scenarios, that is, those involving existing ships in the Singapore Registry, there is no 50% reduction on the registration anew fees for the new ship owner as this fee is not considered as IRF. However, the ship owner can still enjoy the 20% rebate on ATT if the ship qualifies under the GSP.
Use of Low-Carbon Fuels
A Singapore-flagged ship that uses LNG or fuels with CF (conversion factor between fuel consumption and CO2 emission) lower than LNG as its primary fuel will enjoy 75% reduction on the IRF and 50% rebate on the ATT. Existing Singapore-registered ships can also take part in this programme, but will only enjoy the 50% rebate on ATT payable every year until 31 December 2024. Please refer to Annex C for the list of fuels and their corresponding CF values.
The GSP will also recognise Singapore-flagged ships that use fuels with zero-carbon content (such as ammonia, hydrogen) as its primary fuel. These ships will enjoy 100% reduction on the IRF and 100% rebate on the ATT.
Documentary Evidence
To qualify for the GSP under the EEDI criterion, the ship owner has 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 at the time when the above financial incentives are to be applied.
To qualify for the GSP relating to the use of zero- and low-carbon fuels on Singapore-flagged ships, please submit the International Air Pollution Prevention (IAPP) Certificate with its accompanying supplements as well as the Engine International Air Pollution Prevention (EIAPP) Certificate with its accompanying supplements and any other relevant supporting documents.
EXPLORE MORE AT MPA’S GREEN SHIP PROGRAMME
