Cyprus Shipping Deputy Ministry (SDM) has announced a new range of environmental incentives to support shipowners on pathway to decarbonisation, under the Cyprus Green Incentives Programme, to reward vessels that demonstrate effective emissions reductions. From fiscal year 2021, annual tonnage tax will be reduced by up to 30% for each vessel that demonstrates proactive measures to reduce its environmental impact, ensuring shipowners are rewarded for sustainable shipping efforts.
The Cyprus SDM is a leading advocate for sustainable shipping. It believes broad and diverse measures are needed at both a global and regional level to achieve emissions reduction targets and a sustainable future for the industry. This includes the use of cleaner fuels, the deployment of the relevant fuel infrastructure, the electrification of ships, and the use of energy efficiency technologies. A combination of all of these options has the potential to improve the commercial and environmental sustainability of the sector, but shipowners need to be rewarded for investment in sustainable practices to accelerate uptake.
The Cyprus flag will provide a ‘discount’ on its Tonnage Tax System by comparing what emissions reductions are required of a vessel, with what it actually achieves. For example:
Any vessel detained for any reason during PSC inspection, that violates any regulation of European Commission related to the environmental protection, or in laid-up condition (warm or cold) during the calendar year will not be eligible for the incentive.
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