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MPA Releases Update on Green Ship Program Details for Singapore

This circular serves to provide an update on the details of the Green Ship Program (GSP) for ships flying the flag of Singapore, taking into account the changes to the MARPOL Annex VI requirements on the design index of Energy Efficiency (EEDI) which were adopted on November 20, 2020 and entered into force on April 1, 2022 as well as the growing need to decarbonise the industry, according to the MPA press release.

The GSP is one of four programs of the Maritime Singapore Green Initiative (MSGI).

The key principle of the GSP is to reward shipowners who voluntarily adopt solutions that enable ships to exceed the environmental regulatory standards set by the IMO. The GSP started on July 1, 2011 and based on the last review in 2019, the GSP currently runs from January 1, 2020 to December 31, 2024.

From May 1, 2022 until December 31, 2024, the MPA will provide incentives to Singapore-flagged vessels that: i. Exceed IMO MARPOL Annex VI Phase 3 EEDI requirements by 10% or more; ii. Adopt an engine capable of using low-carbon fuels with a CF (conversion factor between fuel consumption and CO2 emissions) 2 equivalent or less than LNG (i.e. (bio) – LNG, (bio)-methanol, (bio)-ethanol); or iii. Adopt an engine capable of using carbon-free fuels (eg, ammonia, hydrogen).

Annex A shows the incentives for Singapore-flagged vessels that qualify for GSP. Vessels will now need to exceed IMO Phase 3 EEDI requirements by 10% or more to qualify for discounts under the EEDI criteria for GSP.

The MSGI aims to reduce the environmental impact of shipping and related activities and to promote clean and green shipping. The MSGI includes the Green Ship program, the Green Port program, the Green Energy and Technology program and the Green Awareness program.

A Singapore-flagged vessel that exceeds the IMO MARPOL Annex VI Phase 3 requirements by 10% or more will receive a 50% reduction on the Initial Registration Fee (IRF) in the part of normal recording and the bulk transfer program (BTS) during recording. of the ship. It will also benefit from a 20% reduction on the annual tonnage tax (ATT) payable each year. Details of the EEDI related criteria and applicable vessel types can be found in Appendix B.

A vessel already registered in the Singapore Ship Register (SRS) that adopts an energy-efficient vessel design that exceeds IMO MARPOL Annex VI Phase 3 requirements by 10% or more may also participate in this programme, but will only benefit from the 20% discount on the ATT payable annually until 31 December 2024. For registration of new scenarios, i.e. those involving existing vessels in the Singapore registry , there is no 50% discount on new registration fees for the new owner of the vessel as these fees are not considered IRF. However, the ship owner can still benefit from the 20% ATT discount if the ship is SPG eligible.

A Singapore-flagged vessel that uses LNG or fuels whose FC (conversion factor between fuel consumption and CO2 emissions) is lower than LNG as the main fuel will benefit from a 75% reduction on the IRF and a 50% discount on the ATT. Existing vessels registered in Singapore can also participate in this scheme, but will only benefit from the 50% rebate on ATT payable annually until 31 December 2024.

The SPG will also recognize Singapore-flagged vessels that use zero-carbon fuels (such as ammonia, hydrogen) as their primary fuel. These ships will receive a 100% discount on IRF and a 100% discount on ATT.

To qualify for GSP under the EEDI criteria, the shipowner must submit a copy of the International Energy Efficiency (IEE) Certificate together with its accompanying supplement as evidence that the EEDI achieved from the ship exceeds the EEDI Phase 3 requirements. of 10% or more for that particular ship type and size at the time the above financial incentives are to be applied.

Vessels that qualify for the GSP will receive a “Green Letter of Recognition” issued by the MPA. The “Green Letter of Recognition” will also be given to the company owning the qualifying vessel. 1 2 This Circular will enter into force and replace Maritime Circular No. 12 of 2019 on 1 May 2022 .