The Isle of Man Ship Registry (IOMSR) is set to become the first flag state in the world to incentivise ship owners by offering a new green discount on registration fees for ships deploying green technology.
The green discount will give ship owners a 15 percent reduction on their annual registration fee. The discount is available to operators of cargo ships, commercial yachts or passenger ships which are investing in biofuels, alternative fuels, wind, or shore-side energy technology and is due for approval in March to become effective April 1, 2022
Minister for Enterprise, Dr. Alex Allinson MHK, commented: ‘The Isle of Man Government has made a clear commitment to sustainability as outlined by our strategic objectives in the Island Plan. Initiatives like these contribute to our wider climate change agenda, as well as demonstrating our commitment to innovation and building a world-class Ship Registry. I am proud that we are the first flag to introduce this incentive and look forward to seeing more initiatives like these in the future.’
To qualify for the green registration fee, vessels will need to provide evidence that they can use alternative fuel or other green power sources, including liquefied natural gas, liquefied petroleum gas, methanol, ammonia, hydrogen, hydrogen-enriched fuel, fuel cells, or battery systems. Using biofuel or biofuel blends as the primary source of fuel for a period of not less than 120 days during the 12 months is also a qualifier and, in a node to emerging technologies, they are also including the ability to use wind-assisted propulsion or wind energy for power generation. Finally, they will provide incentives to ships that can use cold ironing drawing shore power while loading or unloading cargo and turning off their main and auxiliary engines at berth.
Cameron Mitchell, Director of the IOMSR, commented: ‘The IOMSR is a progressive flag state and we are looking at ambitious ways to take action on the decarbonisation agenda that make a difference. There is a lot of debate in the sector regarding which alternative fuels will be best in the future which conversely can create confusion and delay innovation. We want to jump-start work in this area with this new discount and state clearly that if you are a shipping line making steps towards hitting IMO Greenhouse Gas (GHG) emissions targets, the Isle of Man flag will reward you. We want to welcome many more new, greener ships to our fleet.’
The move to offer immediate financial incentives for green technology ships follows on from the IOMSR becoming the first flag state to join the ‘Getting to Zero Coalition’ in 2020. The Coalition’s core aim is to hit the IMO’s 2050 target to develop commercially viable, deep-sea zero-emission vessels by 2030.