Isle of Man Ship Registry launches industry first with new reduced fees for ‘green’ ships

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The Isle of Man Ship Registry (IOMSR) is set to become the first flag state in the world to reduce registration fees for ships deploying green technology.

The new measue will give ship owners a 15 per cent reduction on their annual registration fee. The reduced fee is available to operators of cargo ships, commercial yachts or passenger ships which are investing in biofuel, alternative fuels, wind, or shore-side energy technology.

 

The initiative forms part of the Isle of Man Government’s Merchant Shipping (Fees) Regulations 2022, which will be submitted to Tynwald, the legislature of the Isle of Man, for approval at its sitting in March 2022. The regulations set out the IOMSR fees from 1 April 2022 (see notes to editors).

 

Cameron Mitchell, Director of the IOMSR, said:

 

“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 so much 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 green registration fee 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 more new, greener ships to our fleet.”

 

The Isle of Man Minister for Enterprise, Dr Alex Allinson MHK, said:

 

“The Isle of Man Government has made a clear commitment to sustainability as outlined across our strategic objectives within in the Island Plan. Initiatives like these contribute to our wider decarbonisation 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.”

 

The move to offer immediate financial incentives for green technology ships follows on from the IOMSR becoming the first flag state to join the ‘Getting to Zero Coalition’ in 2020. The Coalition’s core aim is to hit the IMO’s 2050 target to develop commercially viable, deep-sea zero-emission vessels by 2030.

 

Notes to editors

 

  1. IOMSR green registration fee background

The IOMSR green registration fee applies to vessels which can provide evidence of one of more of the following:

  • using biofuel or biofuel 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).

 

 

  1. IOMSR BACKGROUND

The IOMSR is one of the world’s leading flag states and is ranked 17 in the world by Clarkson’s with around 400 ships and 14m GT under its flag. The registry has held top spot on the Paris MoU Port State Control whitelist and is firmly on the whitelist in the Tokyo MoU rankings. It is also one of the high-performing flags on the US Coast Guard’s Qualship 21 scheme.

The registry is headquartered in Douglas on the Isle of Man, a self-governing British Crown dependency and is a Category One member of the Red Ensign group.

The IOMSR was the first flag to issue acceptance of a modification for a Very Large Gas Carrier to run on liquefied petroleum gas (LPG) as a greener fuel for Oslo-listed shipping company BW LPG.

 

 

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