Energy Saving Device Retrofitting Addendum 2026

Introduction

The shipping industry is facing an increasing number of environmental and energy efficiency requirements at both international and regional levels. Regulatory measures aimed at reducing greenhouse gas emissions and improving vessel efficiency are creating growing incentives for owners and charterers to identify and implement measures that reduce fuel consumption, improve environmental performance and support compliance with applicable regulations.

One way of achieving these objectives is through the installation of energy saving device(s) onboard vessels. Depending on the technology concerned, such devices may reduce fuel consumption, lower emissions and improve overall vessel efficiency.

Historically, the installation of energy saving device(s) during a charter period has presented a commercial challenge because the party funding the retrofit may not necessarily be the party receiving the principal benefits generated by the device(s). Owners will often incur the cost of purchasing and installing the equipment, while charterers may receive some or all of the resulting fuel savings and operational benefits during the charter period. As environmental regulation continues to evolve and expand, retrofit projects may enhance a vessel’s ability to comply with applicable regulatory requirements and generate environmental benefits and advantages under existing or future environmental schemes. This allocation can leave the party bearing the cost without receiving a commensurate share of the benefits, weakening the commercial incentive to invest in energy efficiency projects that would otherwise be worthwhile.

The BIMCO Energy Saving Device Retrofit Addendum 2026 has been developed to help overcome this challenge. The Addendum provides a flexible framework through which owners and charterers can agree how the costs, time implications, operational benefits and environmental benefits arising from an energy saving device retrofit are to be allocated between them. By enabling the parties to structure cost-benefit sharing arrangements that reflect their particular commercial circumstances, the Addendum aims to encourage investment in retrofit projects.

The Addendum is intentionally technology-neutral and is capable of supporting a broad range of current and future energy saving technologies, ranging from relatively simple devices to more sophisticated systems requiring ongoing monitoring and verification of performance. As performance assessment methodologies continue to develop and may vary significantly between technologies, the parties are required to agree the detailed technical assessment arrangements in a “Performance Assessment Protocol” set out in Schedule II.

Drafting team

The BIMCO Energy Saving Device Retrofit Addendum was developed by a subcommittee representing owners, charterers and P&I insurers, supported by the BIMCO secretariat.

BIMCO thanks the following subcommittee members for their contribution:

• Mattias Kjellberg, Stena Rederi, Chairperson
• Sanjay Relan, Pacific Basin Shipping Ltd
• Giannis Webster, Costamare Shipping Company S.A.
• Heather Johnson, Chevron Shipping Company, LLC
• Ann Shazell, Cargill International SA
• Keith Dawe, Cargill International SA
• Joanna Meadows, NorthStandard P&I Club

The BIMCO secretariat comprised:

• Carl Wilhelm Lindahl
• Indu Chitran
• Amanda de Vaux

As part of the development work, the subcommittee consulted a large group of stakeholders engaged in shipping and decarbonisation. BIMCO would like to thank them all for their support and valuable input to the process.