BIMCO Adopts Four ETS Clauses
BIMCO’s Documentary Committee has adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, and three ETS clauses for Voyage Charter Parties. The clauses aim to facilitate collaboration and provide clarity and certainty between parties as new regulations come into force, changing the way the industry operates to achieve compliance and cut emissions.
On January 1, 2024, the EU Emissions Trading System (EU ETS) will be extended to cover CO2 emissions from ships of 5,000GT and above calling at EU ports, regardless of flag. Ships engaged in voyages between two EU ports, and voyages between the EU and a third country, will be covered by the EU ETS.
BIMCO’s new ETS clauses have been developed for use with any applicable emission scheme, including, but not limited to, the EU ETS. This is done to ensure that the clause can be used with other schemes that may come into force in the future.
The purpose of the ETS clause for SHIPMAN is to allocate costs and responsibilities between owners and managers, thereby facilitating compliance with emission trading schemes. This includes the reporting of emission data, as well as the transfer and surrender of emission allowances for ships operating under an emission scheme.
The clause has been developed for inclusion in the upcoming revision of SHIPMAN (expected to be published during the first half of 2024) and as a freestanding clause for use with SHIPMAN 2009.
BIMCO’s Documentary Committee also adopted three ETS clauses for voyage charter parties which are an ETS – Emission Scheme Freight Clause for Voyage Charter Parties 2023, an ETS – Emission Scheme Surcharge Clause for Voyage Charter Parties 2023 and an ETS – Emission Scheme Transfer of Allowances Clause for Voyage Charter Parties 2023.
Other already published carbon clauses from BIMCO include the Emission Trading Scheme Allowances Clause for Time Charter Parties, CII Clause for Voyage Charter Parties, CII Operations Clause for Time Charter Parties and the EEXI Transition Clause for Time Charter Parties.
In addition, a BIMCO subcommittee is currently working on the development of an ETS clause for Contracts of Affreightment.