23/10/2024
The introduction of FuelEU creates a new regulatory burden on shipowners and managers.
In the first of our ‘At a Glance’ publications, we consider and answer some of the key questions arising in respect of FuelEU, its...
Decarbonisation and sustainability are core considerations in the future of the shipping industry.
The IMO has mapped out an ambitious pathway towards a carbon neutral industry. The ultimate goal is worthy, but there are likely to be disruptions and challenges along the way that make it important for all stakeholders to plan and prepare in order for it to succeed.
The IMO have formulated the following shipping industry targets to bring shipping in line with the aspirations of the Paris Agreement:
2030:40% reduction in CO2 (compared to 2008 levels)
2050: 70% reduction in CO2
50% reduction in greenhouse gases
These targets will have to be met both by technological and operational means. The use of new technologies, operational procedures and fuels to comply with new efficiency standards will carry inevitable challenges and potential for disputes.
In this section of our website, we aim to provide Members with the information and resources needed to anticipate and prepare for the contractual challenges that are likely to be encountered as the green transition unfolds.
Please read our overview of the green transition in which we outline the IMO’s emissions targets, consider how the industry can achieve them and highlight some of the associated contractual implications.
Click on the links below for more details on specific topics.
Latest Articles
14/12/2023
On 8th December, 2023, BIMCO published four emissions scheme clauses: three clauses for voyage charterparties and a clause for use in ship management contracts. The purpose of the clauses is to allow parties to choose a...
28/06/2023
On 16th May, 2023 the European Parliament approved amendments to the EU Emissions Trading Directive, bringing shipping within the scope of the EU Emissions Trading Scheme (“EU ETS”). As a result, from 1st January, 2024, ships of 5000GT and above which transport cargo or passengers for commercial purposes will be subject to the EU ETS.
This publication considers how the EU ETS works, the implications for owners and charterers and how parties can allocate the costs and responsibilities for complying with an ETS in their charterparties.
23/12/2022
The CII regulations come into force on 1st January, 2023 and will rate ships A, B, C, D or E on the basis of the intensity of their carbon emissions. The way that a ship is operated (speed, amount of cargo, number of voyages etc) will of course have a large impact on a ship’s carbon intensity, so owners and time charterers have for some time been grappling with how to allocate risk and responsibility for this issue.
To assist with the issue, BIMCO has published its CII Operations Clause for Time Charter Parties 2022. The clause is long, some four and half pages, but the basic structure of rights and responsibilities is reasonably clear. However, there remain several outstanding issues, primarily relating to sub-clauses (g) and (i) which we consider further in this insight.
31/08/2022
Taking on the role of an owner and a charterer in a hypothetical fixture discussion, Alexandra Couvadelli and Alex McCue discuss the implications of incorporating the BIMCO EEXI clause into the charterparty.
17/12/2021
As the deadline for EEXI compliance moves closer, BIMCO has published a new clause for time charters intended to give owners flexibility in ensuring that their ships are compliant.
02/09/2021
On 14th July, 2021, the European Commission adopted a series of legislative proposals aimed at reducing greenhouse gas emissions, known as the “Fit for 55” package. The package marks a key step towards the EU’s aim to reduce greenhouse gas emissions by at least 55% by 2030 as compared to 1990 levels, and then to carbon neutrality by 2050. The proposals include, most notably for the maritime industry, measures to promote the use of alternative fuels and key amendments to the EU’s Emission Trading Scheme (“EU ETS”).
23/06/2021
The 76th session of the IMO’s Marine Environment Protection Committee (MEPC 76) convened remotely from 10th to 17th June, 2021. The Committee, which addresses environmental issues under IMO's remit, discussed and implemented a number of key measures in furtherance of the IMO’s environmental goals. Here, we take a quick look at some of the highlights and their impact on Members. Podcast also available.
12/04/2021
There is a wind of change in the shipping industry as business and political leaders recognise and respond to the climate crisis. Decarbonisation and sustainability are now core considerations in the future of the sector. Podcast also available.