BIMCO: ETS ALLOWANCE CLAUSE
Published: 28 June 2022
The Emissions Trading System (ETS) Allowances Clause 2022 for Time Charter Parties is now available on the BIMCO 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 off-hire events and what happens if the charterers fail to transfer allowances when due.