Distributing Environment-Friendly Ships to Capture Greenhouse Gases Properly

 

- Confirming the Environment-friendly Ship Distribution Plan for 2025, including building 54 environment-friendly ships and remodeling 27 ships

 

- Receiving applications from coastal shipping companies for the 1st round of certification of environment-friendly ships (January 31 through March 27)

 

 The Ministry of Oceans and Fisheries (MOF; Minister Kang Do-hyung) announced that it has prepared the 2025 Implementation Plan for Environment-Friendly Ship Distribution in accordance with the 1st Master Plan for Environment-Friendly Ship Development and Distribution (2021-2030).

 

 The government enacted the Act on the Promotion of Development and Distribution of Environment-Friendly Ships in December 2018 to mandate the public sector to build environment-friendly ships and provide the private sector with a legal basis to reduce acquisition taxes and provide subsidies when converting into environment-friendly ships. As a result, 199 ships were converted into environment-friendly ships as of last year.

 

 This year, the government, local governments, and public institutions plan to invest approximately KRW 222.3 billion (KRW 163.5 billion from the national budget, KRW 58.8 billion from the local governments’ budgets) to support the building or conversion of 81 environment-friendly ships.

 

 The public sector plans to build a total of 34 environment-friendly vessels, including electric-powered or hybrid ships, to reduce greenhouse gas emissions. Additionally, 15 operating ships will be equipped with diesel particulate filters (DPF) to reduce fine dust emissions.

 

 In the private sector, support will be provided for building 20 ships in keeping with the demand for transitioning to environment-friendly vessels. Financial assistance such as secondary financing will continue to be offered as well for 12 vessels for installing environment-friendly equipment.

 

 Meanwhile, applications for the 2025 First Phase of the Certified Environment-Friendly Vessel Supply Support Project will be accepted from Friday, January 31 to Thursday, March 27 to support the construction of environment-friendly vessels by small and medium-sized coastal shipping companies operating in domestic ports.

 

 Eligible applicants include coastal shipping companies that order certified environment-friendly vessels such as electric-powered or liquefied natural gas (LNG)-fueled ships. Selected applicants can receive subsidies of up to 30% of the ship's construction cost depending on the certification grade and vessel construction expenses.

 

 “We will make generous investments in small and medium-sized shipping companies to convert into environment-friendly ships, drastically reduce greenhouse gases in the shipping industry, and proactively respond to strengthening international decarbonization regulations,” Minister Kang Do-hyung said.

 

 Detailed information on the 2025 Implementation Plan for Environment-friendly Ship Distribution and the 2025 Certified Environment-friendly Ship Distribution Support Project is available on the News-Notice bulletin board of the MOF website (www.mof.go.kr).