MPA issues an update on the details of the Green Ship Programme for Singapore - flagged ships
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, according to MPA's release.
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 : i. Exceed IMO’s MARPOL Annex VI Phase 3 EEDI requirements by 10% or more ; ii. Adopt engine capable of using low - carbon fuels with CF (conversion factor between fuel consumption and CO 2 emission) 2 equivalent to or lower than LNG (i.e. (bio) - LNG, (bio) - methanol, (bio) - ethanol) ; or iii. Adopt engine capable of using zero - carbon fuels (e.g. ammonia, hydrogen).
Annex A shows the incentives for Singapore - flagged ships that qualify for the GSP. Vessels will now need to exceed IMO’s Phase 3 EEDI requirements by 10% or more to enjoy discounts under the EEDI criterion for the GSP.
The MSGI seeks to reduce the environmental impact of shipping and related activities and to promote clean and green shipping. The MSGI comprises Green Ship Programme, Green Port Programme, Green Energy and Technology Programme and Green Awareness Programme.
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 a new scenarios, that is, those involving existing ships in the Singapore Registry, there is no 50% reduction on the registration a new 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.
A Singapore - flagged ship that uses LNG or fuels with CF ( conversion factor between fuel consumption and CO 2 emission) lower than LNG as its primary fuel will enjoy 75% reduction on the IRF and 50% rebate on the ATT. Existing Singapore - registered ships can also take part in this programme, but will only enjoy the 50% rebate on ATT payable every year until 31 December 2024.
The GSP will also recognise Singapore - flagged ships that use fuels with zero - carbon content (such as ammonia, hydrogen ) as its primary fuel. These ships will enjoy 100% reduction on the IRF and 100% rebate on the ATT.
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.
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. 1 2 This circular will take effect and supersede Shipping Circular No. 12 of 2019 on 1 May 2022 .
