The maritime world is still coming to terms with the shift brought about by the introduction of FuelEU Maritime. But while the regulation’s technical challenges have captured headlines, the true upheaval is unfolding in the legal departments and boardrooms where commercial negotiations are being redefined from the keel up, reports Baltic Exchange.
Shift caused by FuelEU Maritime
A year on from its introduction and market players are still scrambling to define responsibility, allocate risk, and capture the new financial opportunities presented by the European Union’s decarbonisation mandate.
The clock is ticking on a new era of liability, as Oliver Goossens, senior lawyer at GARD, notes, “The FuelEU regulations have now been in force for a full year, penalties are already being incurred and the deadline for payment is fast approaching.”
This impetus is driving a frantic overhaul of fundamental contractual documents. Yet despite the best efforts by industry bodies to provide standardisation, “many parties are still negotiating clauses to cover responsibility for compliance“, Goossens said.
Without agreed clauses, strategies remain undefined. This lack of standardisation is amplified by the fact that the principle of the “polluter pays” is struggling to align with the regulation’s strict legal framework.
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Source: Baltic Exchange
