MPA to invest $100mn in Maritime Singapore Green Initiative

The Maritime Singapore Green Initiative seeks to further reduce the environmental impact of shipping and related activities to promote clean and green shipping.

According to the Maritime and Port Authority of Singapore, Maritime Singapore Green Initiative is a comprehensive initiative comprising three programmes - 'Green Ship Programme', 'Green Port Programme' and 'Green Technology Programme".

Emphasising Singapore’s commitment to address greenhouse gas emissions by shipping, Minister Lim said, “To encourage companies who are ready or thinking about undertaking environmentally-friendly shipping practices above and beyond what is IMO-mandated, the MPA will invest up to S$100 million over the next five years in the Maritime Singapore Green Initiative. This initiative underscores Singapore’s commitment as a responsible flag, and port state to clean and green shipping.”

Under the Green Ship Programme targeted at Singapore-flagged ships, MPA will provide incentives to ship owners who adopt energy efficient ship designs that reduce fuel consumption and carbon dioxide emissions. Singapore-flagged ships which go beyond the requirements of IMO’s Energy Efficiency Design Index will enjoy a 50% reduction of Initial Registration Fees (IRF) and a 20% rebate on Annual Tonnage Tax (ATT) payable. Ship owners will also be recognised through certificates and a new “SRS Green Ship of the Year” award starting from the next Singapore International Maritime Awards.

The Green Port Programme is aimed at encouraging ocean-going ships calling at the Port of Singapore to reduce the emission of pollutants like sulphur oxides and nitrogen oxides. Ships that use type-approved abatement/scrubber technology or burn clean fuels with low sulphur content beyond MARPOL requirements within the port can enjoy a 15% reduction on port dues payable.

The Green Technology Programme aims to encourage local maritime companies to develop and adopt green technologies through co-funding of up to half of qualifying costs. For a start, MPA will set aside S$25 million from the Maritime Innovation and Technology (MINT) Fund for this programme. If response is good, MPA will set aside another S$25 million for this programme.

Mr. S.S. Teo, President of the Singapore Shipping Association was pleased with the Maritime Singapore Green Initiative. He said, “I am glad that the MPA has taken the initiative as a leading ship registry, to become the world’s first maritime administration to launch a comprehensive pro-environment initiative for Singapore’s maritime sector. The three Green Programmes will enhance shipping’s environmental image, and raise the social awareness of Singapore’s shipping community, as we take on an even more active role in further reducing greenhouse gas emission from shipping.”