Singapore incentivise its flagged ships to use low carbon fuels

The Maritime Port Authority of Singapore (MPA) will offer discounted registration fees and tax rebates to Singapore-flagged ships that have lower emissions and use cleaner fuels from next month.

PHOTO: Singapore cargo terminal, one of the busiest in the world. Getty Images

Under its Green Ship Programme (GSP), the MPA will reward shipowners who voluntarily adopt greener solutions that enable them to exceed environmental regulatory standards set by the International Maritime Organisation.

The IMO's Annex VI Phase 3 Energy Efficiency Design Index (EEDI) came into force on 1 April 2022 and mandates that newbuilds should be significantly more energy-efficient than the baseline. The EEDI reduction requirement is typically higher for larger vessels.  

Vessels that exceed EEDI by 10% or more will receive a 50% discount on the MPA's initial registration fees (IRF) and a 20% rebate on its annual tonnage tax (ATT).

Vessels using bio-LNG, bio-methanol and bio-ethanol will enjoy a 75% discount on the IRF and 50% on the ATT.

The MPA will waive all IRF and ATT charges for vessels using zero-carbon fuels like ammonia and hydrogen as their primary fuel.

The Port of Singapore's aims to achieve net zero emissions by 2050.