MPA announces incentives for newbuild harbour crafts using alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (31 December) issued Port Marine Circular No. 15 of 2024 regarding the introduction of Green Craft Programme (GCP) for newbuild harbour craft: 

This circular supersedes Port Marine Circular No.10 of 2022 and will take effect from 1 January 2025 until 31 December 2027.

The MSGI has been enhanced to better align with the targets established by the International Maritime Organization (IMO) to achieve peak greenhouse gas (GHG) emissions from international shipping as soon as possible, and to guide the industry towards reaching net-zero by or around 2050.

Under the revised MSGI, with effect from 1 January 2025, the incentives for new build harbour craft under the Green Port Programme (GPP) will be subsumed under the new GCP, which encourages the early adoption of zero-emission fuel and technologies, as well as zero- and low- carbon fuels for new build harbour craft.

All craft that are currently registered under the 5-year waiver of craft port dues for low or zero carbon-fuelled and fully electric MPA licensed harbour craft under the GPP will continue to enjoy the waiver of craft port dues until the end of 5-year validity period, or until 31 December 2027, whichever is earlier, provided that the craft (a) maintains the MPA licence, and (b) successfully demonstrates the use of zero-emission fuel/technology or zero/low carbon fuel throughout the year. 

For those craft that have yet to reach the full 5-year validity period as at 31 December 2027, they will also need to provide MPA with documents including calculations and verified proof of mitigation technologies to continue to enjoy port dues waiver for the full 5-year validity period, to be in line with GCP. The craft registered under the GPP will not be eligible for the new GCP.

The new GCP will offer craft port dues concessions for new build harbour craft (with MPA Harbour Craft Licence issued between 1 January 2025 and 31 December 2027) meeting one of the following criteria:

Participants in the GCP are required to meet the following terms and conditions:

1. To participate in the GCP, shipowners/charterers should ensure that their new build harbour craft are registered under the GCP via the online registration process for new Harbour Craft Licence in digitalPORT@SGTM at https://digitalport.mpa.gov.sg/. The documents to be submitted during the registration process for verification is listed in Table 1.
2. The eligibility for the port dues concession under the GCP will be assessed during the registration of new build harbour craft. Only one concession scheme will be granted to an eligible new build harbour craft, determined by the declared engine type and the submission of relevant supporting documents to MPA. MPA will work with participants on verified data and calculations, as well as the proof of the mitigation technologies.
3. To enjoy the applicable craft port dues concession under the awarded concession scheme, the craft must (i) switch to zero-emission fuel/technology or zero/low carbon fuel for the main engine and auxiliary engine when operating in the Singapore Port Limits, and (ii) use zero-emission fuel/technology or zero/low carbon fuel throughout operations in the Singapore Port Limits.
4. Craft registered under the GCP will be subjected to annual documentation review by the MPA during the concession period. Supporting documents (listed in Table 1) must be made available to MPA upon request throughout the applicable concession period to demonstrate the use of zero-emission fuel/technology or zero/low carbon fuel. The approved concession will be granted at the end of each licence period.

The port dues concession offered under the GCP is valid in conjunction to any other concessions that the vessel may enjoy. All participants of the GCP are subject to the Terms and Conditions outlined in this Port Marine Circular (PMC). MPA reserves the right to amend the Terms and Conditions of the GCP, based on developments in IMO regulations and Singapore’s domestic climate targets (Nationally Determined Contributions).

For queries regarding the programme, please refer to the Frequently Asked Questions (FAQs) in Annex I. Should you have any further questions, please contact us at [email protected]. For queries related to harbour craft licensing, please contact Marine Licensing and Permits (MLP) at 1800 272 7777 or email at [email protected].

Note: The full circular by MPA can be found here. 

Photo credit: Maritime and Port Authority of Singapore
Published: 2 January, 2025