A new range of green incentives to reward vessels that demonstrate effective emissions reductions were approved by the Council of Ministers on Wednesday, a press release by the Shipping Deputy Ministry says.

"Within the framework of the continuous monitoring of environmental developments, both at international and European level, and contributing to the efforts towards the decarbonization of the shipping industry, the Shipping Deputy Ministry announces, the approval by the Council of Ministers, today, February 7, 2024, a new range of green incentives to reward vessels that demonstrate effective emissions reductions" it notes.

From January 2024, 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 Shipping Deputy Ministry says it is a leading advocate for sustainable shipping, adding that it believes that broad and diverse measures are needed at both global and regional level to achieve emissions reduction targets and a sustainable future for the industry.

This includes, it continues, 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, and at the same time shipowners are rewarded for investments in sustainable practices, it says.

Furthermore, it notes that the ‘discount’ on the Tonnage Tax is available to owners of Cyprus and Community ships which comply with the requirements of the environmental incentives.

"The environmental incentives will strengthen the shift of the Cyprus flag and of the Maritime cluster to the use of environmentally friendly ships and methods, which is a key component of the national maritime policy aiming to establish Cyprus as a maritime state with environmental responsibility. It also demonstrates the commitment of Cyprus Shipping to the green transformation which is a key priority of the EU and is reflected in the European "Green Deal"" the Deputy Ministry says.