Victoria harbour, Hong Kong at night

BIMCO aiming to complete CII and ETS Clauses for publication in May

Published: 28 April 2022

Work continues apace to prepare two important carbon clauses for publication in May. The most of challenging of these tasks is the development of a CII Compliance Clause for Time Charter Parties. Technical, commercial and legal experts have been meeting weekly for many months to try to find a practical solution for owners and operators operating under the new CII regime. As of 2023, ships will enter an annually narrowing emissions “corridor” where owners and charterers will need to work closely together to ensure continuing compliance. The BIMCO CII Clause will need to balance the operational restrictions imposed on owners by the low carbon regime against allowing charterers to optimise the ship’s commercial activity during the charter period.

Also a priority is the Emissions Trading System Allowance Clause which is based on a mechanism for transferring allowances between charterers and owners rather than a payment scheme. This avoids the complexities of emissions allowances price fluctuations. Allowances are transferred on a monthly basis; surrender is annual. Charterers can either register to have their own account on the EU Registry system or can obtain allowances through brokers or banks. Owners have the right to suspend performance if charterers fail to transfer allowances when due.

BIMCO’s Documentary Committee will decide on publishing the CII Compliance Clause and the EU ETS Clause on 18 May.
Grant Hunter


Grant Hunter

Director of Standards, Innovation and Research

London, United Kingdom