BIMCO releases emissions trading clause for time charterparties
BIMCO has published a new clause which allocates costs and responsibilities for obtaining, transferring, and surrendering greenhouse gas emissions allowances for ships operating under an emissions trading scheme.
The basis of the BIMCO Emissions Trading System Allowances (ETSA) Clause for Time Charter Parties 2022 is that the party providing and paying for the fuel under the time charter is the party that is responsible for providing and paying for emissions trading allowances.
BIMCO advise that the shipowner must monitor the ship’s emissions and provide the relevant emissions data and calculations to the charterer. Using this information, the charterer transfers the appropriate allowances to the owner on a monthly basis. The BIMCO ETSA clause addresses the adjustment of allowances due to off-hire events and what happens if the charterers fail to transfer allowances when due.
Note that the clause addresses “greenhouse gas emissions” and is not limited to CO2 emissions. This aligns with recent developments in extending the EU Emissions Trading System (EU-ETS) to shipping, with the European Parliament wanting all greenhouse gas emissions to be included, such as methane and nitrous oxides.
The drafting team included North’s Helen Barden, Senior Solicitor (FD&D).
The BIMCO clause and accompanying guidance notes can be read at: https://www.bimco.org/contracts-and-clauses/bimco-clauses/current/etsa_clause
Source: North P&I Club
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