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Shipping: Green Transformation with Incentive Plan

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Shipping: Green Transformation with Incentive Plan

Up to 30% discount on the annual capacity tax.

The Ministry of Shipping announces a series of green incentives for rewarding ships that demonstrate effective emission reductions. Incentives come in the form of a discount of up to 30% on the annual tonnage tax for each vessel taking precautionary measures to reduce the environmental impact, using mechanisms to protect the marine environment and mitigate the effects of climate change.

Cyprus has made it a priority to support the green transformation of shipping. To this end, it is estimated that a number of measures are needed globally and regionally to achieve emission reduction targets and a sustainable future for the shipping industry. These measures should include the use of more environmentally friendly fuels, the development of relevant infrastructure, the electrification of ships and the use of energy efficiency technologies. The combination of all these options provides the opportunity to improve the commercial and environmental sustainability of the industry while rewarding shipowners for their investment in sustainable practices.

Cyprus will offer tonnage tax rebates by assessing emission reductions required by a ship as well as those using alternative fuels that contribute substantially to the decarbonization of carbon-based fuels. For example, ships that (a) achieve a further reduction in the Energy Efficiency Design Index are rewarded (b) Achieve a reduction in the ratio of total fuel consumption relative to the distance traveled between two consecutive reporting periods (c) use alternative fuels.

It is noted that ships detained for any environmental reason during the Port State Inspection inspection, which violate any European Commission regulation on environmental protection or are decommissioned during the calendar year will not be eligible for tax deduction.

“As a global shipping power, Cyprus has an obligation to encourage and support the efforts of the shipping industry to reduce greenhouse gas emissions. Achieving the right balance between green transformation and competitiveness of the sector is a great challenge, but it also offers opportunities to those who innovate and invest in new technologies, “said Deputy Minister of Shipping Vassilis Dimitriadis.

More information on the Environmental Incentive Plan of the Ministry of Shipping is available here.

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Source: www.philenews.com

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