BIMCO has developed a FuelEU Maritime Clause for Time Charter Parties 2024 in order to help companies entering into ship charter agreements to align their contractual frameworks with EU regulation on greenhouse gas (GHG) emissions that comes into force January 1, 2025.
The clause was adopted by BIMCO’s Documentary Committee on November 25.Adopted in July 2023 as part of the European Commission’s (EC) Fit for 55 legislative packageto reduce EU greenhouse gas emissions by at least 55% by 2030, the FuelEU Maritime Regulation (Regulation (EU) 2023/1805) promotes the use of renewable, low-carbon fuels and clean energy technologies for ships, which it says is essential to support decarbonization in the sector.
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BIMCO stands for the Baltic and International Maritime Council, a global trade association that promotes professionalism, transparency, and standardization in the maritime industry. BIMCO is the world’s largest shipping organization, with over 2,000 members in more than 130 countries
FuelEU Maritime sets maximum limits for the yearly average GHG intensity of the energy used by ships above 5,000 gross tonnage calling at European ports, regardless of their flag. The EC says targets will ensure that the greenhouse gas intensity of fuels used in the sector will gradually decrease over time, starting with a 2% decrease by 2025 and reaching up to an 80% reduction by 2050.
BIMCO says it continues to add to its portfolio of carbon clauses to support the industry, as the shipping industry faces an increase in decarbonization regulations from the EU and the International Maritime Organization (IMO). The focus has been on developing a standard clause that is workable for most scenarios and commercial relationships. For longer period charter parties, the charterers will have the flexibility to decide on their compliance strategy whether that be utilizing pooling, banking or borrowing.
The company responsible for compliance with FuelEU Maritime under the new BIMCO clause is the shipowner. In reality, however, it may be a third-party ship manager who has agreed to take over all the duties and responsibilities imposed by the IMO Code for the Safe Operation of Ships and for Pollution Prevention (ISM). BIMCO is therefore working on developing a clause for BIMCO’s ship management agreement, SHIPMAN.
In December last year, BIMCO’s Documentary Committee adopted a new Emission Trading Scheme Allowances Clause for BIMCO’s ship management agreement, SHIPMAN, and three ETS clauses for Voyage Charter Parties. Moreover, in June this year, the Documentary Committee adopted three ETS clauses for Contracts of Affreightment.
