The Deputy Ministry of Shipping of Cyprus recently announced a new ‘Green Incentive Programme’ to reimburse vessels that show effective emissions reductions. From fiscal year 2021, annual tonnage tax will be reduced by up to 30% for each vessel that demonstrates hands-on measures to reduce its environmental impact, making sure that shipowners are rewarded for sustainable shipping efforts. That said, successful applicants will receive their discounts by next year.

Such incentives are given to promote greater environmental sustainability in the shipping sector. At the same time, it provides the opportunity to enhance green technologies.  Further tax benefits, in addition to the ones already offered by the Cypriot shipping sector, can also cover profits from the sale of vessels, any interest earned and further dividends that are paid.

The aim of this new environmental incentive programme is to support shipowners on a pathway to decarbonisation and to achieve a regional and global reduction in emissions.