Director of Standards, Innovation and Research
London, United Kingdom
- (+44) 7786627796
The Emissions Trading System Allowances (ETSA) Clause 2022 for Time Charter Parties is now available to download free of charge from BIMCO’s website.
The clause uses clear language to allocate obligations and responsibilities for obtaining, transferring, and surrendering allowances for greenhouse gas emissions from ships operating under an emissions scheme, such as the impending EU ETS.
The basic principle is that as the charterers are operating the ship and providing and paying for the fuel, they are also responsible for emissions trading allowances, which they transfer to the owners for settlement. The owners must monitor and report the ship’s emissions and provide to the charterers the relevant actual emissions data and the basis of their calculations. Using this information, the charterers transfer the appropriate allowances to the owners at the end of each month. The clause addresses the adjustment of allowances due to offhire events and what happens if the charterers fail to transfer allowances when due.