Go
X

Menu Search BIMCO Basket
Home X

Update on work to develop ETS Allowances Clause for SHIPMAN

  1. Insights and information
  2. Contracts
  3. 20230703 SHIPMAN
Ship on the sea with sunset/sunrise

Update on work to develop ETS Allowances Clause for SHIPMAN

Published: 03 July 2023

The subcommittee tasked with the revision of BIMCO’s suite of third party management contracts continues its work to develop a standard Emission Trading Scheme Allowances (ETSA) Clause for use with the popular ship management agreement SHIPMAN. The aim is to present a draft standalone clause for possible adoption by BIMCO’s Documentary Committee when it meets next in Copenhagen on 11 October.

Mindful of the inclusion of maritime transport in the EU Emissions Trading System as of 1 January next year, drafting of the ETSA Clause has been a top priority for the subcommittee since the SHIPMAN revision was launched in May 2022. Recent developments in the EU, notably in relation to the interpretation of who will be the regulated entity, has required renewed consideration by the subcommittee to ensure that the clause caters for the different options which may be the end result.

“We are drafting a clause for wide application – not one which will cater just for the EU ETS – and are therefore working on providing options to allow for whichever company shall be the regulated entity under the regime applicable wherever the vessel trades”, says Capt. Ajay Hazari of Anglo Eastern who chairs the subcommittee composed of experts in the ship owning, management, insurance and legal community.

The SHIPMAN revision is moving ahead and the subcommittee at its recent meeting also started considering the feedback received from an industry consultation on the contract and any adjustments that might be relevant to make on this background. This review, as well as drafting work on the ETSA Clause, will continue at the next meeting which is intended to be held in August.

Separately, the Carbon Clauses subcommittee will soon begin work to develop an ETS clause for voyage charter parties. More information on this to follow over the couple of months.
Christian Hoppe

CONTACT BIMCO

Christian Hoppe

General Counsel

Copenhagen, Denmark

More from CONTRACTS