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Sweden to remove 'cold ironing' tax

Country becomes first in the world to abolish tax on plug-in shoreside power.



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Updated on 12 May 2009 09:39 GMT

Three of Sweden's leading shpping bodies have signed an agreement to stimulate the further use of onshore power supply at a ceremony where it was also confirmed that the government will abolish the 'cold ironing' tax.

The Swedish Maritime Administration, Ports of Sweden and the Swedish Shipowner's Association gave their support to the initiative at a signing ceremony, which took place at the port of Gothenburg.

Plug-in shoreside power, also known as "cold-ironing," allows ships to shut down their auxiliary engines while the ship is docked, for a 100 percent reduction of air pollution at berth. Without shoreside electricity, vessels would use their own diesel-powered auxiliary engines to power refrigerated containers, pumps, lighting, air conditioning and computers while at dock.

The Port of Gothenburg was the first port in World to use high-voltage, onhore power supply, and is also a driving force in the World Ports Climate Initiative to improve air quality in ports around the world.

Also attending the ceremony was Moderate Party MP and party fiscal affairs spokeswoman Lena Asplund, who confirmed that the government has said that onshore power supply will not be subject to tax.

"This makes Sweden the first country in the world to abolish the tax," the port of Gothenburg said in a statement.

At present around ten vessels are supplied with onshore power supply in Gothenborg, including the vessels operated by the pulp and paper group Stora Enso and Stena Line ferries.

The Port of Gothenborg said it is also planning to extend the power supply to other berths in the future.






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