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Cyprus approves green shipping incentives for 2024

The Cabinet of Ministers, led by Deputy Minister of Shipping Marina Hadjimanoli, this week approved updated green incentives for the Cypriot shipping sector in 2024, in line with the European Green Deal.

The EU’s Green Deal refers to a set of policy initiatives by the European Commission, with the long-term objective of making the European Union climate neutral by the year 2050.

In terms of the incentives approved by the Cabinet, these measures, including a potential 30 per cent reduction in annual tonnage tax, aim to reward vessels achieving significant greenhouse gas emission reductions.

Hadjimanoli underscored the importance of these measures in promoting sustainable shipping practices, ensuring that Cyprus ships follow environmental responsibility standards.

Moreover, she also highlighted the ongoing monitoring of environmental developments and the Maritime Council’s efforts in formulating encouragement to support the decarbonisation of the shipping industry.

Stressing the significance of these incentives, she said that “Cyprus believes that environmental incentives will bolster the transition of the Cypriot flag, and the broader maritime community, towards the utilisation of environmentally friendly ships and methods”.

Furthermore, it has been noted that various measures are needed to achieve emission reduction targets and ensure the sustainability of the shipping industry.

These include the utilisation of cleaner fuels, infrastructure enhancement, electrification of ships, and the adoption of energy-efficient technologies.

These initiatives, alongside the reductions in tonnage tax, aim to incentivise shipowners to invest in sustainable practices, contributing to a greener maritime sector.

Meanwhile, it should be noted that the EU reached a milestone agreement to slash maritime emissions in March of 2023.

At the time, the European Commission applauded the agreement achieved between the European Parliament and the European Council, which sought to bolster efforts to meet the EU’s ambitious climate goals.

The accord is centred around FuelEU Maritime, a regulation aimed at progressively curbing the shipping sector’s greenhouse gas emissions.

The regulation outlined a phased reduction, starting with a 2 per cent decrease in fuel emissions by 2025, ultimately reaching an impressive 80 per cent reduction by 2050.

The European Commission said at the time that this marked a significant stride in aligning with the EU’s overarching objective of achieving climate neutrality by 2050.

In addition, the commission noted that this agreement is a strategic companion to the provisional deal struck in December 2022, integrating shipping emissions into the EU Emissions Trading System (EU ETS).
Source: Cyprus Mail

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