On 22 April 2022, the Maritime and Port Authority of Singapore issued Shipping Circular No. 07 of 2022 regarding the revised Green Ship Programme (GSP) under the Maritime Singapore Green Initiative (MSGI). This Circular provides an update on the details of the GSP for Singapore-flagged ships, in view of the amendments to the International Maritime Organisation (IMO)'s MARPOL Annex VI Energy Efficiency Design Index (EEDI) requirements, which were adopted on 20 November 2020 and entered into force on 1 April 2022.
With effect from 1 May 2022 until 31 December 2024, the Maritime and Port Authority will provide incentives to Singapore-flagged ships that:
The incentives are summarized as follows:
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 the 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.
A ship that is already registered with the Singapore Registry of Ships (SRS) and 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 the ATT payable every year.
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 a 75% reduction on the IRF and a 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.
Use of Zero-Carbon Fuels
Singapore-flagged ships that use fuels with zero-carbon content (such as ammonia, hydrogen) as their primary fuel will enjoy a 100% reduction on the IRF and a 100% rebate on the ATT.