The Maritime and Port Authority (MPA) of Singapore has issued a new Shipping Circular detailing revisions to the Maritime Sector Green Initiative (MSGI), which will take effect from 1 January 2025 until 31 December 2027. According to the circular, MPA will offer several incentives to owners of Singapore-registered ships (SRS).
In particular, under the revised MSGI, the Green Ship Programme (GSP) has been enhanced to address the
targets set by the International Maritime Organization (IMO) to peak greenhouse gas (GHG) emissions from international shipping as soon as possible and reach net-zero by or around, i.e. close to 2050; the emergence of greener engines/technologies; and the Carbon Intensity Indicator (CII) requirement under MARPOL Annex VI which entered into force on 1 January 2023.
Under the enhanced GSP, MPA will provide ship owners of Singapore-registered ships (SRS) with the following incentives:
#1 Adopt Zero-Emission fuelled engine/technology
SRS that adopt engines/technologies capable of using zero-emission fuels (e.g. hydrogen, battery) as its primary fuel. These ships will enjoy 100% concession on the Initial Registration Fee (IRF) and 100% concession on the Annual Tonnage Tax (ATT).
#2 Adopt Zero-Carbon coupled with near-zero emissions fuelled engine
SRS that adopt engines capable of using zero-carbon fuels (e.g. ammonia with pilot fuel capped at 25% on an energy basis with ammonia slip, NOx and N2O addressed) as its primary fuel will enjoy 100% concession on the IRF and 80% concession on the ATT.
#3 Adopt Low-Carbon fuelled engine with CF Value < 1.375
SRS that adopt engines capable of using fuels with CF (conversion factor between fuel consumption and CO2 emission) < 1.375 as its primary fuel will enjoy 75% concession on the IRF and 50% concession on the ATT.
#4 Adopt Low-Carbon fuelled engine with 1.375 < CF Value < 2.750
SRS that adopt engines capable of using fuels with 1.375 < CF Value < 2.750 as its primary fuel will enjoy 50% concession on the IRF and 20% concession on the ATT.
#5 Exceed IMO’s MARPOL Annex VI EEDI requirement
SRS that exceeds the requirements of IMO’s MARPOL Annex VI Phase 3 EEDI by 10% or more will enjoy 20% concession on the IRF and 20% concession on the ATT.
#6 Achieve CII Rating A
SRS that achieve a CII “A” rating would also receive an additional 5% concession on ATT.
