Since 2018, shipping companies have been obligated to report carbon dioxide (CO2)emissions for vessels over 5000GT engaged in EU trade. As of 2024, stringent regulations will require these companies to purchase emissions allowances, covering a significant percentage of intra-EU and EU port emissions. The responsibility for compliance falls on the shipping companies, with specific criteria for reporting methane (CH4) and nitrous oxide (N2O) emissions during voyages and offshore services.
Emission Allowance Obligations from 2024 Onwards
In the coming year, shipping companies are set to purchase and surrender emissions allowances, beginning at 40% for intra-EU voyages and EU port emissions, and 20% for voyages to or from the EU. These percentages will progressively rise until 2026, reaching 100% for intra-EU voyages and 50% for international voyages, with exceptions. This marks a substantial step toward environmental accountability within the maritime industry.
Shaping Agreements and Contracts: BIMCO’s Contribution
The responsibility for submitting emissions allowances rests with the shipping company, defined as the entity overseeing the ship’s operation. Shipowners or managers, in compliance with the International Safety Management Code (ISM), may assign this duty to another party but must explicitly outline this in contracts. BIMCO’s “Emission Trading Scheme Allowances Clause for Time Charter Parties 2022” serves as a valuable reference for crafting such agreements, and providing clarity and accountability in emissions reporting.
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Source: WEST
