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Singapore: MPA revises Green Ship Programme to support maritime decarbonisation

25 Apr 2022

The Maritime and Port Authority of Singapore (MPA) on Friday (22 April) issued Shipping Circular No. 7 of 2022 regarding a revision of the Green Ship Programme (GSP) for Singapore-flagged ships that will take effect from 1 May, 2022. 

This Circular serves to provide an update on the details of the Green Ship Programme (GSP) for Singapore-flagged ships, in view of the amendments to International Maritime Organisation (IMO)’s MARPOL Annex VI Energy Efficiency Design Index (EEDI) requirements which were adopted on 20 November 2020 and have entered into force on 1 April 2022 as well as the rising need to decarbonise the industry. The GSP is one of the four programmes under the Maritime Singapore Green Initiative (MSGI). 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 commenced 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:

  1. Exceed IMO’s MARPOL Annex VI Phase 3 EEDI requirements by 10% or more;
  2. 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); or
  3. 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. Details of the EEDI-related criteria and applicable ship types can be found in Annex B.

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 Singaporeregistered 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.

Use of Zero-Carbon Fuels

The GSP will also recognise Singapore-flagged ships that use fuels with zerocarbon 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.

If the documentary evidence (such as IEE Certificate or IAPP Certificate) is not ready at the time of provisional registration, the ship owner has to inform the Singapore Registry of Ships in writing at the point of provisional registration of the intention to participate in the GSP. The documentary evidence will then need to be submitted within  1 month of provisional registration. For existing ship owners who have made modifications to make their ships green and would like to enjoy the rebate on ATT, please provide the documentary evidence at least two months before the ATT due date. 

There will be no pro-rated rebate if documentations are not submitted on time. Submissions can be made via email to marine@mpa.gov.sg.

Interested ship owners may approach one of our eight Recognised Organisations (ROs)3 for the issuance of the documentary evidence (such as IEE Certificate, IAPP Certificate and EIAPP Certificate).

Ships that qualify for the GSP will be given a “Green Letter of Recognition” issued by MPA. The “Green Letter of Recognition” will also be given to the company owning the qualifying ship.

This circular will take effect and supersede Shipping Circular No. 12 of 2019 on 1 May 2022.

Any queries relating to this shipping circular should be directed to the Singapore Registry of Ships dedicated contact via email: marine@mpa.gov.sg.

CHEAH AUN AUN
DIRECTOR OF MARINE
MARITIME AND PORT AUTHORITY OF SINGAPORE

Note: A link to the complete document including ANNEX A, ANNEX B and ANNEX C can be found here.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 April, 2022

 

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