Cyprus tends to encourage owners to manage more eco-friendly ships by establishing new taxation system based on tonnage of the vessels.
The government of Cyprus has shared their rewarding policy towards the vessels that will show low figures of CO2 emissions. For those vessels that will take effective steps for reduction of negative environmental effect, Cyprus guarantees 30% concession in taxes.
Ships that have reached required Energy Efficiency Design Index and exceeded it, will be able to get annual tax reduction up to 25%.
Vessels which will show decrease in overall consumption of fuel oil as against the overcome distance, in comparison with preceding period, will get up to 20% reduction.
If the vessels which use other types of fuel can reduce CO2 emissions by perhaps 20 percent compared to conventional types of fuel, they will get a concession of tonnage tax up to 30%.
If any vessel hasn’t passed inspection of port state control due to violation of some environmental regulations, then these vessels will not be subject to such an opportunity.
Cyprus, being a leading nation in a maritime sector, feels that it is obliged to promote reduction in emissions. The authorities of Cyprus assume that the shipowners can make a right choice in favor of this directive that will beneficial for them in the aspects of operation of the vessel and commercial issues. It is definitely a challenging task to achieve a balance between transfer to green sources and competitive edge but still there will appear a lot of opportunities.
Cyprus also prompts European countries to implement green policy across the countries. The International Maritime Organization has established objectives for the following 10 and 30 years. Within this period of time all stakeholders in the maritime sphere must cooperate to achieve these targets.