Maritime and Port Authority of Singapore (MPA) has decided to offer discounts on fees and taxes for ships which exceed environmental regulatory standards set by the International Maritime Organisation (IMO).
The discounts were announced in a circular published on 22 April and will come into effect from 1 May 2022 until 31 December 2024.
The incentive is a part of MPA’s updated Green Ship Programme (GSP) for Singapore-flagged ships under the Maritime Singapore Green Initiative (MSGI).
MPA will provide incentives for Singapore-flagged ships which:
A ship that exceeds the requirements of IMO’s Marpol Annex VI Phase 3 EEDI targets by 10% or more will enjoy a 50% reduction on initial registration fees (IRF) and a 20% rebate on the annual tonnage taxes (ATT).
A ship that is already registered with the Singapore Registry of Ships but exceeds the IMO EEDI target by 10% or more can also receive a 20% rebate on the ATT if it qualifies under the GSP.
Vessels which use LNG or fuels with conversion factor lower than LNG get 75% reduction on the IRF and 50% rebate on the ATT.
Finally, Singapore-flagged ships that use zero-carbon fuels such as ammonia or hydrogen as their primary fuels will get 100% reduction on the IRF and 100% rebate on the ATT.
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