The Cabinet has approved a revised series of green incentives to reward ships demonstrating effective reductions in greenhouse gas emissions.
As of January 2024, the annual tonnage tax will be reduced by up to 30% for each ship taking measures to reduce climate impacts, ensuring that shipowners are rewarded for sustainable maritime efforts.
“The Ministry of Shipping has prioritized supporting sustainable shipping. It believes that a series of different measures, both globally and regionally, are required to achieve emissions reduction goals and a sustainable future for the industry. This includes the use of more environmentally friendly fuels, the development of relevant infrastructure, electrification of ships, and the use of energy efficiency technologies. The combination of these options provides the opportunity to improve the commercial and environmental sustainability of the industry, while also rewarding shipowners for investing in sustainable practices,” according to a relevant announcement.
The “discounts” on the tonnage tax are aimed at owners of Cypriot and Community ships that meet the requirements of environmental incentives.
“Environmental incentives will strengthen the shift of the Cypriot flag and our wider Maritime Cluster towards the use of environmentally friendly ships and methods, which is a key element of our national maritime policy aiming to establish Cyprus’s significant position as a maritime state in areas such as the environment. It also demonstrates the commitment of Cypriot Shipping to the green transformation, which is a key priority of the EU and is reflected in the ‘Green Deal’,” concludes the ministry.
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