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2022 April 22   18:06

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 .

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