'More red tape' alert: shipping needs to prepare now for UK ETS
Shipping companies are being urged to prepare now for the arrival of the UK Emissions ...
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PRESS RELEASE
Global, sector-focused law firm HFW has continued to support BIMCO in helping the shipping industry work towards decarbonisation by drafting a suite of three new voyage charterparty clauses for parties to allocate costs and responsibilities relating to ships operating under an emission scheme.
Emission schemes are ‘cap and trade’ markets that permit the emission of greenhouse gases in exchange for allowances. Over time, the quantity of allowances available to industry are reduced as an incentive to reduce emissions through increased efficiency and the use of alternative fuels.
BIMCO has published three voyage charterparty emission schemes clauses, which are intended to provide industry stakeholders with the flexibility to choose a procedure suitable for their specific trade and business:
- ETS Emission Scheme Freight Clause For Voyage Charter Parties: click here.
- ETS Emission Scheme Surcharge Clause for Voyage Charter Parties: click here.
- ETS Emission Scheme Transfer of Allowances Clause for Voyage Charter Parties: click here.
HFW green shipping and decarbonisation experts Alessio Sbraga and Joseph Malpas formed part of the drafting sub-committee for this suite of voyage charterparty clauses. HFW was the only law firm on the sub-committee.
This follows HFW’s work drafting several other “game-changing” carbon emissions clauses for BIMCO, including an emissions trading scheme allowances clause for time charters, CII clauses for voyage charter parties and time charter parties, the industry’s first standard offshore decommissioning contact, and two clauses relating to the International Maritime Organization’s 2020 sulphur emission rules.
The firm also helped BIMCO draft the industry’s first standard contract for autonomous shipping, its first cyber security clause, a “faster, simpler” ship sale and purchase agreement, and a model clause addressing force majeure events occurring under contracts.
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