G/SCM/Q2/EU/81  
 
1 September 2022  
(22-6531) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO THE QUESTIONS POSED BY AUSTRALIA1  
REGARDING THE NEW AND FULL NOTIFICATION  
OF THE EUROPEAN UNION (CYPRUS)2  
The following communication, dated and received on 31 August 2022, is being circulated at the 
request of the delegation of the European Union . 
 
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16. SCHEME FOR MITIGATION OF CLIMATE CHANGE AND ENERGY EFFICIENCY OF FISHING 
VESSELS - MEASURE 1.20 (ARTICLE 41.1 REG. 508/2014 - EMFF 2014 - 2020)  
This gr ant scheme is to modernize fishing vessels and improve the energy efficiency of 
fishing vessels.  
Question 1  
Are there prerequisites or conditionalities for receipt of these grants, in particular relating 
to increasing the fishing capacity of fishing vessels? For example, are grants approved 
subject to a fishing vessel increasing its capacity and length of period at sea?  
Reply : 
This scheme is not related to engine replacement or capacity increase but investments to mitigate 
the effects of climate change and to improve the energy efficiency of fishing vessels:  
(a) investments in equipment or on board aimed at reducing the emission of pollutants or 
greenhouse gases and increasing the energy efficiency of fishing vessels. Investments in 
fishing ge ar are also eligible provided that they do not undermine the selectivity of that 
fishing gear;  
(b) energy efficiency audits and schemes;  
(c) studies to assess the contribution of alternative propulsion systems and hull designs to the 
energy efficiency of fishing v essels.  
As to the question above please see reply to program 17 which is related to engine replacement.  
17. SCHEME FOR THE REPLACEMENT AND MODERNISATION OF MAIN OR ANCILLARY 
ENGINES OF FISHING VESSELS – MEASURE 1.21 (ARTICLE 41.2 REG. 508/2014 – EMF 
2014 -2020) NEW)  
Australia notes that this program expired in 2020.  
 
1 G/SCM/Q2/EU/67  
2 G/SCM/N/373/EU/ Add.5 G/SCM/Q2/EU/81  
 
- 2 - 
 
  Question 2  
Grateful if Cyprus could clarify how Programs 16 and 17 relate to each other, that is, did 
these operate simultaneously or did Program 16 replace Program 17?  
Reply : 
Program 17 is the call related to engine replacement of engines while 16 refers to investments on 
the vessel for energy efficiency.  
There are several prerequisites and conditionalities for this kind of schemes but in particular to 
fishing capacity these are the following co nditions:  
Support for the replacement or modernisation of main or ancillary engines may be granted only:  
(a) for vessels up to 12 meters in overall length, provided that the new or modernized engine 
does not have more power in kW than the current engine;  
(b) for vessels between 12 and 18 meters in overall length, provided that the power in kW of 
the new or modernized engine is at least 20 % lower than that of the current engine;  
(c) for vessels between 18 and 24 meters in overall length, provided that the power in kW o f 
the new or modernized engine is at least 30 % lower than that of the current engine.  
Support under this scheme for the replacement or modernization of main or ancillary engines may 
only be granted in respect of vessels belonging to a fleet segment for wh ich the report on fishing 
capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown a balance with 
the fishing opportunities available to that segment.  
Also Support under this scheme shall only be granted for the replacement or mode rnization of main 
or ancillary engines which have been officially certified in accordance with Article 40(2) of 
Regulation  (EC) No 1224/2009. It shall only be paid after any required reduction of capacity in kW 
has been permanently removed from the Europea n Union fishing fleet register.  
For fishing vessels not subject to a certification of engine power, support shall only be granted for 
the replacement or modernization of main or ancillary engines in respect of which the consistency 
of engine power has been verified in accordance with Article 41 of Regulation (EC) No 1224/2009 
and which have been physically inspected to ensure that the engine power does not exceed the 
engine power established in the fishing licenses.  
 
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