The Council of Ministers has approved revised green incentives for ships for the year 2024, as stated by the Deputy Minister of Shipping, Marina Chatzimanoli, after the body's meeting on Wednesday.

Announcing the approvals from the Ministry, Ms. Chatzimanoli mentioned that the revised green incentives are designed to reward ships demonstrating effective greenhouse gas emission reductions. These incentives are part of an ongoing effort to monitor environmental developments at both European and international levels and contribute to the decarbonization of the shipping industry.

She noted that the Shipping Council developed a revised draft of incentives with the aim of issuing a new decree by the Council of Ministers, clarifying that the Decree includes three environmental incentives for ships. She added that the third environmental incentive, a new addition not included in the previous decree, will be offered from 2024.

Ms. Chatzimanoli further clarified that the annual tonnage tax will be reduced by up to 30% for each ship demonstrating climate impact reduction measures, ensuring that shipowners are rewarded for sustainable efforts. Ms. Chatzimanoli stated that the Shipping Council has prioritized supporting sustainable shipping and believes that "environmental incentives will enhance the shift of the Cypriot flag and the broader Cypriot maritime cluster to the use of environmentally friendly ships and methods."

In a statement from the Deputy Ministry of Shipping, it is further clarified that the "discounts" on tonnage tax are aimed at owners of Cypriot and community ships that meet the conditions of the environmental incentives. The Deputy Ministry of Shipping also notes that it has prioritized supporting sustainable shipping and believes a range of different measures, both globally and regionally, are required to achieve emission reduction goals and a sustainable future for the industry.

These include the use of more environmentally friendly fuels, the development of related infrastructure, the electrification of ships, and the use of energy-efficient technologies. The combination of all these options provides the potential for improving the commercial and environmental sustainability of the industry, while simultaneously contributing to rewarding shipowners for investments in sustainable practices.