MPA to incentivise Singapore-registered ships to adopt greener engines, technologies

The Maritime and Port Authority of Singapore (MPA) on Tuesday (29 October) issued Shipping Circular No. 12 of 2024 informing MPA will provide incentives to ship owners of Singapore-registered ships (SRS) with the incentives for zero- and low-emission engine:

This Shipping Circular provides details on revisions to the Maritime Sector Green Initiative (MSGI), which will take effect from 1 January 2025 until 31 December 2027. 

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:

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).

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.

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.

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.

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.

Achieve CII Rating A

SRS that achieve a CII “A” rating would also receive an additional 5% concession on ATT.

Ships that are already registered as SRS but not currently under the GSP may also apply, should they meet the criteria but have not applied previously, or have carried out modifications to ships to meet the criteria.

For registration anew scenarios, that is, those involving existing ships but changing owners in the Singapore Registry, there would be no concession 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 corresponding concession on ATT if the ship qualifies for the GSP.

This circular will take effect and supersede Shipping Circular No. 7 of 2022 on 1 January 2025.

Any queries relating to this shipping circular should be directed to the Singapore Registry of Ships dedicated contact via email: [email protected].

Note: Full details on the revisions of MSGI- GSP for Singapore-registered ships can be found here.

Photo credit: Maritime and Port Authority of Singapore
Published: 30 October 2024