The Cabinet of Ministers, which was led by Deputy Minister of Shipping Marina Hadjimanoli, approved updated green shipping incentives for the Cypriot shipping sector this week in 2024. This is done in line with the European Green Deal.
The EU’s Green Shipping Deal refers to a set of policy initiatives by the European Commission. Along with the long-term objective of making the European Union climate-neutral by 2050.
The Cabinet has approved incentives to reward vessels for significantly reducing greenhouse gas emissions. They include a possible 30 percent reduction in annual tonnage tax. Hadjimanoli also emphasized the importance of these measures in promoting sustainable shipping practices. Ensuring that Cyprus ships adhere to environmental responsibility standards.
Stressing the importance of these incentives, she said, “Cyprus believes that environmental incentives will bolster the transition of the Cypriot flag. Alongwith, the broader maritime community towards utilizing environmentally friendly ships and methods.”
They include:
1) utilization of cleaner fuels
2) infrastructure enhancement
3) electrification of ships
4) adoption of energy-efficient technologies.
These initiatives, with the reductions in tonnage tax, aim to incentivize shipowners to invest in sustainable practices. Making a contribution to a greener maritime sector.
Meanwhile, the EU reached a milestone agreement to slash maritime emissions in March 2023.
The European Commission complimented the European Parliament and the European Council contract. The agreement aimed to strengthen initiatives to achieve the EU’s ambitious climate targets.
EU has announced FuelEU Maritime. A regulation to reduce greenhouse gas emissions in the shipping sector. The phased reduction begins with a 2% decrease by 2025 and an 80% reduction by 2050. This aligns with the EU’s goal of climate neutrality by 2050. The regulation complements the contract by integrating shipping emissions into the EU Emissions Trading System.
