This clause is designed for incorporation into agreements for the sale and purchase of vessels.
The purpose of the clause is to allocate costs and responsibilities between the buyers and the sellers of a ship operating under an emissions scheme, such as the EU Emissions Trading System (ETS).
Emissions Trading Scheme Clause for Memoranda of Agreement 2025
Notwithstanding any other provision under this Agreement, the Parties hereby agree as follows:
“Emission Allowances” means an allowance, credit, quota, permit or equivalent, representing a right of a vessel to emit a specified quantity of greenhouse gas emissions recognised by the Emission Scheme(s).
“Emission Scheme” means a greenhouse gas emissions trading scheme which for the purpose of this Clause shall include the European Union Emissions Trading System and any other similar systems imposed by applicable lawful authorities that regulate the issuance, allocation, trading or surrendering of Emission Allowances.
"Reporting Period" means a period from 1 January to 31 December of the year during which information referred to in the applicable Emission Scheme(s) is monitored and recorded.
“Verifier” means a legal body or legal entity appointed to carry out verification activities and which is accredited in accordance with the applicable Emission Scheme(s) with respect to the Vessel.
“Verified Partial Emission Report” means a report verified by the Verifier confirming the Vessel’s emissions recorded for the Reporting Period in which delivery will occur in accordance with the applicable Emission Scheme(s).
(a) The Sellers warrant and undertake that:
(i) at the time of delivery, they will have complied with all reporting requirements in accordance with any applicable Emission Scheme(s) for the Reporting Period in which delivery will take place up to and including the time of delivery; and
(ii) following delivery, they will submit a Verified Partial Emission Report (or equivalent) and any relevant information or data in accordance with any applicable Emission Scheme(s) for the Reporting Period in which delivery will take place up to and including the time of delivery; and
(iii) they will provide evidence of the submission under (ii) above to the Buyers upon their request as soon as reasonably practicable.
(b) The Sellers shall remain responsible for the Emission Allowances under the applicable Emission Scheme(s) for the Reporting Period in which delivery will take place up to and including the time of delivery and shall surrender such Emission Allowances in accordance with the applicable Emission Scheme(s).
(c) The Buyers shall become responsible for the Emission Allowances under the applicable Emissions Scheme(s) in respect of the period following delivery and shall surrender Emission
Allowances in accordance with the applicable Emission Scheme(s) for the period following delivery.
(d) The Sellers shall indemnify and hold harmless the Buyers against any and all claims, losses, damages or liabilities which may be incurred or alleged against the Buyers and/or the Vessel under any Emission Scheme(s) and/or as a result of or in connection with any non-compliance or failure to surrender Emission Allowances under the applicable Emission Scheme(s) in respect of the Vessel’s emissions during the Reporting Period in which delivery will take place up to and including the time of delivery.
Explanatory notes will follow as soon as possible