Isle of Man Shipping Registry to introduce the world’s first “green” discount for sustainable ships.

The Isle of Man Shipping Registry is set to introduce the world’s first “green” discount for sustainable ships, in an incentive aimed at supporting ship owners which chose to invest in “green” technology and attract newer more environmentally friendly ships to the Isle of Man flag.

The Regulation

The new “green” discount, set out in the Merchant Shipping (Fees) Regulations 2022, will be the first of its kind for a flag state, providing a discount of 15% from the annual registration fee for operators of cargo ships, commercial yachts or passenger ships which have invested in bio-fuel, alternative fuel, wind or shore-side energy technology and can provide evidence of one or more of the following –

  • Using bio-fuel or bio-fuel blends as the primary source of fuel for a period of not less than 120 days during the 12 months preceding the 1 April;
  • Its ability to use alternative fuel – liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol, ammonia, hydrogen, hydrogen enriched fuel, fuel cells, or battery systems;
  • Its ability to use wind assisted propulsion or wind energy for power generation; or
  • Its ability to use shore-side energy to provide continuous electrical power to its equipment while it loads or unloads its cargo at berth with its main and auxiliary engines turned off (cold ironing).

Minister for Enterprise, Dr Alex Allinson MHK, commented:

‘The Isle of Man Government has made a clear commitment to sustainability as outlined by our strategic objectives in the Island Plan. Initiatives like these contribute to our wider climate change agenda, as well as demonstrating our commitment to innovation and building a world class Ship Registry. I am proud that we are the first flag to introduce this incentive and look forward to seeing more initiatives like these in the future.’ –

Cameron Mitchell, Director of the IOMSR, commented:

‘The IOMSR is a progressive flag state and we are looking at ambitious ways to take action on the decarbonisation agenda that make a difference. There is a lot of debate in the sector regarding which alternative fuels will be best in the future which conversely can create confusion and delay innovation. We want to jump start work in this area with this new discount and state clearly that if you are a shipping line making steps towards hitting IMO Greenhouse Gas (GHG) emissions targets, the Isle of Man flag will reward you. We want to welcome many more new, greener ships to our fleet.’

When will it come into operation?

The regulation has been submitted to Tynwald for approval at its sitting on the 15th-17th March.

If approved by Tynwald, the Regulations will come into operation on the 1st April 2022.

References

www.tynwald.org.im/business/opqp/sittings/20212026/2022-SD-0014-MEMO.pdf

www.tynwald.org.im/business/opqp/sittings/20212026/2022-SD-0014.pdf

www.iomshipregistry.com/news/2022/feb/iomsr-is-world-first-in-discounting-fees-for-ships-using-green-technology