Marine Department to launch two new incentive schemes in relation to green maritime fuel-related vessels to promote green transformation of shipping industry
The Marine Department (MD) announced today (June 12) that the Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels and the Green Vessels Registration Incentive Scheme will be launched on June 16 for a period of three years, with a view to encouraging more vessels to bunker green maritime fuels in Hong Kong and accelerating the green transformation of the Hong Kong fleet.
The International Maritime Organization has set a target of achieving net-zero carbon emissions in international shipping by around 2050. To leverage the trend of decarbonisation in the international shipping industry, the Government has committed in the Action Plan on Green Maritime Fuel Bunkering promulgated in November 2024 the provision of various financial incentives to help lower the cost of transitioning to green maritime fuels by the maritime industry and expedite the development of Hong Kong as a green port. In this year's Budget, the Government has allocated approximately $34 million to implement relevant initiatives, including providing port dues concessions for vessels powered by green maritime fuels as well as those carrying green maritime fuels, and offering incentives for green fuel-powered vessels registered in Hong Kong.
The Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels provides concessions for green maritime fuel-related vessels, including ocean-going vessels (OGVs) powered by or bunkering specified green maritime fuels in Hong Kong, and OGVs carrying green maritime fuels for supply in Hong Kong. Specified green maritime fuels covered under the Scheme refer to liquefied natural gas (LNG), methanol, ammonia, hydrogen, and bio-diesel (blended with at least 20 per cent bio-fuel). Eligible OGVs conducting specified operation(s) throughout their stay in Hong Kong may apply for a reimbursement of their port dues (including port facilities and light dues, anchorage dues, buoy dues and fees for port clearance permits) paid in accordance with the Shipping and Port Control Regulations (Cap. 313A). The amount of the incentive is equivalent to 25 per cent or 50 per cent of the port dues paid.
Eligible shipowners or their agents must submit the application form together with the required supporting documents to the MD within three months of their vessels' completion of the above operation(s) in and departure from Hong Kong. The approved incentive amount will generally be disbursed within 30 working days. The amounts of incentives applicable to different types of OGVs are set out in the Annex.
A spokesman for the MD said, "Following the launch of the Green Maritime Fuel Bunkering Incentive Scheme last year, the new initiative further provides incentives to encourage the industry to adopt green maritime fuels, which are often more expensive than traditional fuels, and to build up demand for green maritime fuel bunkering services in Hong Kong early. This will in turn attract other players in the green maritime fuel bunkering supply chain, such as bunker suppliers, bunker operators and traders, to establish and expand their operations in Hong Kong. We expect this scheme to attract more than 1 000 visits to Hong Kong by green maritime fuel-related vessels."
Meanwhile, the Green Vessels Registration Incentive Scheme provides incentives to green fuel-powered vessels currently or newly registered in the Hong Kong Shipping Registry (HKSR), thereby attracting and retaining the registration of green vessels in Hong Kong.
Under the scheme, all Hong Kong-registered ships that use green maritime fuels as their primary propulsion fuel, which include LNG, methanol, ammonia and hydrogen but exclude conventional fuels and biofuels, will be eligible to apply. During the three-year period of the scheme, each eligible vessel will be provided with a subsidy of HK$60,000 once every year, and may enjoy one or at most three years' incentives depending on the timing and duration that the vessel is registered with the HKSR. Each vessel is eligible to receive a maximum subsidy of HK$180,000. Approval and disbursement of the incentives will take approximately three months from the receipt of an application with all required supporting documents. The vessel's Hong Kong registration status must be maintained on the date the incentive is disbursed.
The spokesman said, "This scheme will encourage vessels using green maritime fuels to register in Hong Kong and promote the green transformation of the Hong Kong fleet, which will further enhance the overall competitiveness of the HKSR. We estimate that this scheme will attract approximately 100 vessels powered by green maritime fuels to register with the HKSR. Alongside the vessels powered by green maritime fuels currently registered in Hong Kong, we expect that around 170 such vessels registered in Hong Kong will benefit from the scheme within three years of implementation."
The spokesman added, "'Low-carbon' and 'decarbonisation' will be the inevitable focal points of the shipping industry's future development. At present, Hong Kong leads the Guangdong-Hong Kong-Macao Greater Bay Area in bunker volume, ranking second nationally and seventh globally. We are committed to leveraging our existing strengths to fully develop our green maritime fuel bunkering capabilities, with an aim to establish Hong Kong as a premier hub for high-quality green maritime fuel bunkering and trading centre."
For details of the Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels and the Green Vessels Registration Incentive Scheme, please visit the MD's webpages (www.mardep.gov.hk/filemanager/en/share/forms/pdf/md558.pdf;www.mardep.gov.hk/filemanager/en/share/forms/pdf/md743.pdf). The promotional leaflets have also been uploaded onto the MD's website (www.mardep.gov.hk/filemanager/en/share/publications/pdf/materials/tis_green.pdf).
The Marine Department, Photo source: reference image
