The Maritime Singapore Green Initiative (MSGI), which was due to expire at the end of the year, will also be extended by five years, said Maritime and Port Authority of Singapore (MPA) chief executive Quah Ley Hoon.
"As a key maritime nation, Singapore is committed to promoting environmental sustainability of the industry. MPA has reviewed its MSGI to keep it relevant, with a new focus on decarbonisation," she said.
Under the enhanced MSGI, new carbon emissions-related incentives will replace existing sulfur emissions-related ones in the Green Ship Program and Green Port Program.
The Green Ship Program will also have a new incentive to encourage adoption of engines using alternative fuels with lower carbon content such as liquefied natural gas (LNG), while the Green Port Program will introduce new incentives for the use of LNG bunker during port stay and for ships exceeding IMO’s Energy Efficiency Design Index requirements.
In 2011, MPA pledged to invest up to S$100 million over 5 years in the Maritime Singapore Green Initiative. In 2016, following industry support, the Initiative was further enhanced and extended till 31 December 2019.