This Circular serves to provide an update on the details of the Green Ship Programme (GSP) for Singapore-flagged ships… …The GSP commenced on 1 July 2011 and was valid until 30 June 2016… …[It] was extended until 31 December 2019, and now it is further extended until 31 December 2024.
From 1 January 2020, MPA will provide incentives to Singapore-flagged ships which:
i. Exceed IMO’s MARPOL Annex VI Energy Efficiency Design Index (EEDI) requirements;
ii. Adopt engine capable of using liquefied natural gas (LNG); and/or
iii. Adopt engine capable of using alternate fuel with CF (conversion factor between fuel consumption and CO2 emission)2 equivalent to or lower than LNG, henceforth referred to as “low-carbon fuels”…
…Singapore-flagged ships that adopt approved SOx scrubber technology will no longer be qualified under the GSP as this criterion will not be going above and beyond existing IMO emission requirements.
A Singapore-flagged ship that exceeds the requirements of IMO’s MARPOL Annex VI EEDI 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 until the ship ceases to exceed the requirements of MARPOL Annex VI EEDI, based on the applicable EEDI phase for that particular ship type and size. Details of the EEDI-related criteria and applicable ship types can be found Annex B.
An existing ship which utilises energy efficient ship design that meet the requirements for the GSP can also take part in this programme, but will only enjoy the 20% rebate on ATT payable every year until the ship ceases to exceed the requirements of the applicable EEDI phase for that particular ship type and size. For registration anew scenarios, that is, those involving existing ships in the Singapore Registry, there is no 50% reduction on the registration anew 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 as its primary fuel will enjoy 75% reduction on the IRF and 50% rebate on the ATT.
With effect from 1 January 2020, the GSP will also recognise Singapore-flagged ships that use fuels with CF (conversion factor between fuel consumption and CO2 emission) lower than LNG, or low-carbon fuels. Please refer to Annex C for the list of fuels and their corresponding CF values. A Singapore-flagged ship that uses low-carbon fuels as its primary fuel will enjoy 50% reduction on the IRF and 20% rebate on the ATT. A Singapore-flagged ship which exceeds the requirements of MARPOL Annex VI EEDI and uses low-carbon fuels as its primary fuel will enjoy 75% reduction on the IRF and 50% 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 as proof that the attained EEDI of the ship exceeds IMO’s requirements on EEDI for that particular ship type and size at the time when the above financial incentives are to be applied. To qualify for the GSP relating to the use of LNG and low-carbon fuels on Singapore-flagged ships, please refer to the application form as shown in Annex D. Please submit this application form and supporting documents at the point of provisional registration.
If the documentary evidence (such as IEE Certificate or Cargo Ship Safety Construction Certificate) is not ready at the time of provisional registration, the ship owner has to inform the Singapore Registry of Ships in writing at the point of provisional registration of the intention to participate in the GSP. The documentary evidence will then need to be submitted within 1 month of provisional registration. For existing ship owners who have made major modifications to make their ships green and would like to enjoy the 20% rebate on ATT, please provide the documentary evidence at least two months before the ATT due date.
There will be no pro-rated rebate if documentations are not submitted on time. Submissions can be made via email to [email protected].
Interested ship owners may approach one of our eight Recognised Organisations (ROs) for the issuance of the documentary evidence (such as IEE Certificate or Cargo Ship Safety Construction Certificate). Please refer to Annex E for the list of ROs.
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.
(For further details and information about operations in Singapore, contact GAC Singapore at [email protected])
Source: Extracts from Maritime and Port Authority of Singapore Shipping Circular No.12 of 2019
