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BIMCO publishes three ETS clauses for Contracts of Affreightment
Published: 19 June 2024
The BIMCO Documentary Committee has added to our existing library of ETS clauses by adopting three innovative ETS Clauses for Contracts of Affreightment (COAs). These clauses address Emission Trading Schemes (ETS), such as the EU ETS, within the COA framework.
The subcommittee tasked with the drafting of this suite of clauses has dedicated considerable time and effort to ensuring that the industry has flexibility to choose which of the three clauses best suits their needs and business models. The ETS – Emission Scheme Freight Clause for COAs 2024 is intended for parties seeking to incorporate the costs of complying with an emission scheme within the freight rate. It integrates the existing BIMCO ETS – Emission Scheme Freight Clause for Voyage Charter Parties 2023, previously adopted by the DC late last year. The ETS – Emission Scheme Surcharge or Transfer of Allowances Clause for COAs 2024 is tailored for parties aiming to agree on ETS costs pre-voyage. This clause necessitates the parties to pre-agree a surcharge or the quantity of emission allowances for each voyage under the COA. Finally, the ETS – Emission Scheme Transfer of Actual Allowances Clause for COAs 2024 is for parties who prefer to manage actual allowances post-voyage. This clause includes a reconciliation mechanism that allows for adjustments in the actual quantity of allowances required after the voyage has been performed.
This development illustrates BIMCO's continuous efforts to continue promotion of the decarbonisation agenda in the maritime industry and to assist our members with tools to deal with new regulation. With these new clauses, BIMCO reaffirms its commitment to delivering practical solutions that address the evolving needs of the shipping community.
BIMCO is grateful to the drafting team for their considerable time, effort and commitment in producing the three ETS Clauses for COAs:
Nicola Ioannou, Oceanfleet (Chairperson), Daniel Carr, Stolt-Nielsen, Henning Babiel, ADM, Kelly Vouvoussiras, Rio Tinto, Claire Weustenraed, Pacific Basin, Lisa-Marie Perrella, Fednav, Annie Choquette, CSL Group, Rachel Hoyland, Stephenson Harwood, Helen Barden, North Standard.
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