Cyprus recognizes that the maritime sector should contribute its fair share to the decarbonization and energy transition of the shipping sector, while at the same time safeguarding the competitiveness of the sector, however since the maritime sector moves to more sustainable greener practices to achieve IMO goals, the sector faces both challenges and opportunities in transitioning to alternative fuels and innovative technologies. 

The International Maritime Organization (IMO) established ambitious targets for reducing greenhouse gas emissions from shipping. One of the most important challenges is the uniform compliance with these regulations, by both Member states and companies, safeguarding the competitiveness of the sector. 
The development of a port infrastructure to support alternative fuels, and shore power supply is another challenge which all coastal states should deal with. Adequate infrastructure is essential for the use of zero and near zero GHG fuels
and technologies in maritime transport, ensuring that the ship is able to bunker alternative fuels across Europe’s ports as well as world widely, thus maintaining the competitiveness of the maritime sector. In addition to the above, the availability
of alternative fuels is still limited in many countries globally, creating supply chain challenges that could impede widespread the adoption of innovative technologies.
In terms of the cost implications, the initial costs associated with the transitioning to alternative fuels are in many cases higher than the traditional fossil fuel (HFO). This includes not only the cost of the newbuilding vessel but also retrofitting equipment at the existing ships and the training of the crewmembers on innovative technoloies. 
On the other hand the opportunities in transitioning to alternative fuels and innova- tive technologies are significant and should be taken into the account by all involved parties.The green transition is a great opportunity for all countries to reward first movers through environmental incentives. As part of its continued monitoring of environmental developments, and contributing to the endeavour to decarbonize ship- ping, the Shipping Deputy Ministry has authorized a new series of green incentives to reward ships that demonstrate effective reductions in greenhouse gas emissions. In order to support shipowners for their sustainable shipping efforts, with the revised Environmental Incentives scheme adopted 2024, the yearly tonnage tax for ships registered in the Cyprus Register of Shipping was lowered by up to 30% for each eligible ship that demonstrates effective emissions reduction beyond the agreed global levels. By offering environmental Incentives we promote the use of alternative fuels such as hydrogen and biofuels, innovative technologies and progressive vessel’s construction adopting new technologies and equipment. 
The companies are encouraged to invest in research and development in order to create more efficient technologies, zero carbon based fuel oil, management systems and innovative technologies that leads to improved operational efficiency of the ships. The transitioning to alternative fuels and/or innovative technologies encourages collaboration among stakeholders and shipping companies, fuel suppliers and regulatory entities to share knowledge and resources effectively. 
The transition towards alternative fuels and innovative technologies demonstrates both significant challenges and opportunities for the maritime sector. Addressing regulatory compliance issues, developing necessary infrastructure, cost implications are critical challenges that need sustainable solutions. Inversely, the establishing 
of the innovative technologies and alternative fuels, enhancing energy efficiency, incentivize first movers, the collaboration among stakeholders Member states and company and aligning are the key opportunities within transitioning to cleaner fuels and technologies. 
* Shipping Deputy Minister to the President of the Republic of Cyprus