Background

Fuel switching – safety alert

In 2009, the United States Coast Guard (USCG) issued a safety alert highlighting the possible hazards arising from switching from residual fuel oils to distillate fuel oils in order to reduce emissions.

IMO has provided interim guidance on the use of biofuels in relation to CII

The 80th session of the IMO’s Marine Environment Protection Committee (MEPC 80), held in July 2023, has approved the interim guidance on the use of biofuels.

BACKGROUND

ETS – Standard Mandate for use in EU Emission Trading System 2024

The Standard ETS Mandate 2024 is made available as an independent, supporting document to the freestanding ETS – SHIPMAN Emission Trading Scheme Allowances Clause 2023 and SHIPMAN 2024 . Parties intending to use the ETS Mandate should be aware that the administering authority of a member state may have its own individual requirements which will have to be complied with. Copyright in the Standard ETS Mandate 2024 is held by BIMCO.

Shipping industry unites to propose ambitious CO2 reduction objectives to global regulator

Four major international trade associations – BIMCO, INTERCARGO, International Chamber of Shipping (ICS) and INTERTANKO – have made a joint proposal to the IMO concerning ambitious CO2 reductions by the international shipping sector, which is responsible for transporting about 90% of global trade and 2.2% of the world’s annual man-made CO2 emissions.

Decarbonising shipping - the contractual challenge

The complexities of maritime decarbonisation are underscored by the industry's multifaceted challenges in reducing greenhouse gas emissions. The European Union (EU) and the International Maritime Organization (IMO) have implemented new rules to address this imperative. The EU and the IMO have set ambitious emission reduction targets for the shipping sector, encouraging the adoption of alternative fuels and energy-efficient technologies. Simultaneously, the IMO’s strategy for the reduction of GHG Emissions from ships outlines a phased approach towards decarbonisation. These regulations necessitate significant technological and operational changes for shipowners, charterers, and operators. Achieving compliance involves navigating intricate compliance frameworks, especially considering the diverse nature of vessels and trades. As the maritime industry steers through these uncharted waters, collaboration, innovation, and a holistic understanding of the regulatory landscape are crucial for a sustainable and decarbonised future. The maritime industry will need to consider whether the contractual structures that have been in place for over a century suit the journey toward decarbonisation.

China adopts 0.50% sulphur limit to match IMO regulation

Chinese regulators have tightened its domestic emission control area regulation (DECA) which came into force on 1 January 2019.

BIMCO's EEXI/CII and ETS Clauses imminent

In a little over a year from now, new legislation from the International Maritime Organization (IMO) will come into force. It aims to reduce CO 2 emissions and will change the way ships are operated. From 1 January 2023, owners and charterers will therefore have to cooperate to comply with the new regulation.

BIMCO position statement on greenhouse gas emissions