BIMCO Expands Carbon Clauses Portfolio With New FuelEU Maritime Clause

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Mfame Editor
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As the shipping industry adapts to stringent decarbonisation regulations introduced by the EU and the International Maritime Organization (IMO), BIMCO has unveiled the FuelEU Maritime Clause for Time Charter Parties 2024. This clause, designed for time charter agreements, addresses the complexities of the upcoming FuelEU Maritime regulation effective January 2024.

Key Highlights

  1. Purpose and Scope
    • The clause is tailored to help charter parties navigate the intricate FuelEU Maritime compliance requirements.
    • It offers flexibility for longer-term charters, allowing charterers to select compliance strategies, including pooling, banking, or borrowing of allowances.
  2. Stakeholder Collaboration
    • The clause was developed with extensive consultations involving owners, charterers, legal experts, and stakeholders like P&I insurers to ensure practical application.
    • According to Nicholas Fell, Chair of BIMCO’s Documentary Committee, the regulation is expected to have a broader impact than the EU Emissions Trading System (ETS), making this clause critical for the industry.
  3. Responsibility for Compliance
    • Shipowners are designated as the primary parties responsible for compliance under the clause.
    • However, in some cases, compliance duties may shift to third-party ship managers under the International Safety Management (ISM) Code.

Complementary Clauses and Future Plans

  • BIMCO has expanded its carbon clauses portfolio, addressing a variety of decarbonisation regulations. Notable additions include:
    • Emission Trading Scheme (ETS) Allowances Clause for Ship Management Agreements (SHIPMAN) and Voyage Charter Parties.
    • CII (Carbon Intensity Indicator) Clauses for both voyage and time charter parties.
    • EEXI (Energy Efficiency Existing Ship Index) Transition Clause for Time Charter Parties.
  • Upcoming developments:
    • BIMCO is crafting a new clause for SHIPMAN to manage FuelEU Maritime compliance responsibilities.

Impact on the Shipping Industry

  • The FuelEU Maritime Clause ensures that stakeholders are equipped to manage compliance efficiently while mitigating risks.
  • This move aligns with the industry’s need for standardized contractual frameworks to navigate decarbonisation challenges.
  • The collaborative drafting approach reinforces the clause’s adaptability to diverse commercial and operational scenarios.

Quote from BIMCO Leadership:
“The industry has eagerly awaited this clause. The collaborative drafting ensures a standard clause that is workable for most scenarios and relationships, preparing the shipping sector for a transformative regulatory environment,” said Stinne Taiger Ivø, BIMCO’s Deputy Secretary General.

With this addition, BIMCO solidifies its role as a leader in supporting maritime decarbonisation and compliance.

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Source: BIMCO