Hong Kong's Marine Department (MD) is set to launch two new financial incentive schemes on 16 June, aimed at encouraging the uptake of green maritime fuels and accelerating the decarbonisation of the city's shipping sector.

The Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels and the Green Vessels Registration Incentive Scheme will each run for three years, backed by approximately HK$34m allocated in the government's annual Budget.

The initiatives follow the International Maritime Organization's target of achieving net-zero carbon emissions from international shipping by around 2050, and build on Hong Kong's Action Plan on Green Maritime Fuel Bunkering, published in November 2024.

Port dues concessions

Under the Port Dues Incentive Scheme, ocean-going vessels (OGVs) that are powered by, bunkering, or carrying specified green maritime fuels while in Hong Kong may apply for a reimbursement of port dues — covering port facilities and light dues, anchorage dues, buoy dues, and fees for port clearance permits — equivalent to either 25% or 50% of the dues paid.

Specified fuels covered by the scheme include LNG, methanol, ammonia, hydrogen, and biodiesel blended with at least 20% biofuel. Eligible shipowners or their agents must submit applications, along with supporting documents, to the MD within three months of a vessel's departure from Hong Kong. Approved incentive amounts will generally be disbursed within 30 working days.

An MD spokesman stated: "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."

Registration subsidies

The Green Vessels Registration Incentive Scheme targets vessels currently or newly registered in the Hong Kong Shipping Registry (HKSR) that use green maritime fuels — specifically LNG, methanol, ammonia, or hydrogen — as their primary propulsion fuel. Conventional fuels and biofuels are excluded from eligibility.

Each qualifying vessel will receive an annual subsidy of HK$60,000, up to a maximum of HK$180,000 over three years. Approval and disbursement of incentives is expected to take approximately three months from receipt of a complete application. Vessels must maintain their Hong Kong registration status on the date the incentive is disbursed.

The MD 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."

Green bunkering ambitions

Hong Kong currently ranks second nationally and seventh globally by bunker volume, according to the MD, and leads the Guangdong-Hong Kong-Macao Greater Bay Area in that regard. The spokesman added: "'Low-carbon' and 'decarbonisation' will be the inevitable focal points of the shipping industry's future development. 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."