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Cyprus pushes for greener shipping by reducing annual tonnage tax

 

The Cyprus Shipping Deputy Ministry (SDM) has announced a new range of green incentives 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. 

Ships which demonstrate reduction of the total fuel oil consumption in relation to the distance travelled, compared to the immediately previous reporting period will obtain an annual tonnage tax rebate of between 10 to 20%.

Vessels using an alternative fuel and achieving CO2 emissions reductions of at least 20% in comparison with traditional fuels will receive a rebate on annual tonnage tax of between 15 and 30%. Any vessel detained for any reason during PSC inspection, that violates any regulation of European Commission related to environmental protection, or in laid-up condition (warm or cold) during the calendar year will not be eligible for the incentive.

Vassilios Demetriades, Cyprus Shipping Deputy Minister, commented: “As a leading maritime nation, we have an obligation to support efforts in reducing GHG emissions. We believe that flag states are well positioned to support ship owners in making sustainable shipping choices which they can benefit from both operationally and financially. Striking the right balance between the green transformation and competitiveness is a challenge but also presents opportunities.

“Cyprus believes incentives such as this will encourage greater environmental sustainability across the global industry while also enhancing Maritime Europe’s competitive advantage in new green technologies. This creates opportunities for jobs and growth, providing a first-mover advantage to the EU shipping industry. Clear objectives for 2030 and 2050 have been set by the IMO and all industry stakeholders must unite to create a clear pathway to achieve and exceed these goals.”

Ranking amongst the top international fleets, Cyprus flags over 1,000 oceangoing vessels with a total gross tonnage exceeding 24 million. Cyprus is also in the process of formulating a long-term strategic vision for shipping, maritime and marine related activities, addressing the current challenges and opportunities and setting a vision, mission and objectives for the next two decades (2021-2040). 

For more information on Cyprus SDM, and its latest green incentives you can visit 2021-01-18-Environmental Ιncentives.pdf (dms.gov.cy). Photo: Cyprus Shipping

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