CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios LLC
• Category D – vessels used for pleasure and engaged in trade, carrying from 13 passen - gers up to 36 passengers. Green Incentives The Shipping Deputy Ministry has set up a range of green incentives with the aim of rewarding vessels demonstrating effective emissions reductions. Introducing such incentives simul - taneously encourages and rewards ship-owners who opt for lower emissions or who use alterna - tive drives. As from fiscal year 2021, annual tonnage tax is reduced by up to 30% for each vessel that successfully demonstrates proactive measures for lowering its environmental impact, ensuring that ship-owners are rewarded for sustainable shipping efforts. This is achieved by comparing what emissions reductions are required of a ves - sel with what it actually achieved. However, any vessel detained for any reason during a port state control inspection and which violates any regulation of the European Commis - sion related to environmental protection will not be eligible for the incentive. The Shipping Deputy Ministry believes that incentives such as this will encourage greater environmental sustainability across the global industry, while also enhancing Europe’s com - petitive maritime advantage in new green tech - nologies. This creates opportunities for jobs and growth, providing a first-mover advantage to the EU shipping industry. In relation to such initiatives, the Shipping Dep - uty Ministry: • became a signatory to the “Declaration on Zero-Emissions Shipping by 2050” and to
the “Green Shipping Challenge” initiatives launched at COP27; and • has organised a virtual debate on the Euro - pean Commission’s proposed Emissions Trading System for shipping, as well as a live SWOT analysis hybrid event on the potential of low- and zero-emission fuels for shipping, in association with the University of Houston. Digitalisation Programme The Shipping Deputy Ministry is currently under - taking a wide-ranging digitalisation project expected to increase both its efficiency and the range of services available through its online portals. A public tender for the digital transformation of the Shipping Deputy Ministry has already been awarded, and the project is co-financed by the EU. It aims to transform the business processes/ workflows of the Shipping Deputy Ministry and to maximise its operational efficiency based on three key principles: • the establishment of the “one-stop shipping centre”; • seamless process integration; and • operational excellence. It is expected that by the end of 2025 all the services of the Shipping Deputy Ministry will be provided digitally in a streamlined and paperless environment. Furthermore, a mobile phone application (CYSHIP) will soon be available, with various digital services being accessible to its users directly from their mobile phones. One-Stop Shipping Centre The Shipping Deputy Ministry recently launched an internal service to cater to most requirements
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