BIMCO ETS Allowances Clause for Time Charter Parties 2022
The BIMCO rider that passes the cost of EU Emissions Trading System allowances to the time charterer as the party controlling fuel and voyage.
The BIMCO ETS - Emission Trading Scheme Allowances Clause for Time Charter Parties 2022, published in May 2022, allocates the cost of emission allowances under the EU Emissions Trading System to the time charterers, who direct the voyages and pay for the fuel, while the owners remain the shipping company responsible to the administering authority for surrender. It is attached to forms such as NYPE 2015 by rider.
The full article will cover the clause mechanics, the monthly statement and transfer of allowances, the treatment of off-hire periods, the position at redelivery and on default, and how the clause sits with the EU ETS maritime phase-in from 2024.