BIMCO Adopts 2024 FuelEU Maritime Clause to Support Shipping Decarbonization

The BIMCO FuelEU Maritime Clause for Time Charter Parties 2024 was created to help the shipping industry comply with upcoming decarbonization regulations. It allows charterers to choose compliance strategies and places responsibility on shipowners. Extensive industry consultations ensured practicality. BIMCO continues to develop clauses to support environmental obligations. Collaboration was key in creating this important clause.
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The BIMCO FuelEU Maritime Clause for Time Charter Parties 2024 was recently adopted by BIMCO’s Documentary Committee in preparation for the implementation of the FuelEU Maritime Regulation on 1 January 2025. This new clause is intended to help stakeholders in the shipping industry align their contractual frameworks with the upcoming decarbonization regulations from the EU and the International Maritime Organization (IMO). As the industry faces increasing pressure to reduce emissions, BIMCO continues to expand its portfolio of carbon clauses to support compliance.

The development of the FuelEU Maritime Clause involved extensive industry consultations to ensure its practicality and effectiveness. Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, emphasized the importance of creating a standard clause that can be applied to various scenarios and commercial relationships. The clause allows charterers in longer period charter parties to choose their compliance strategy, whether through pooling, banking, or borrowing.

Nicholas Fell, Chair of BIMCO’s Documentary Committee, highlighted the collaborative effort that went into creating the FuelEU Maritime Clause. The clause places responsibility for compliance with the FuelEU Maritime Regulation on the shipowner, although this duty may be delegated to a third-party shipmanager. BIMCO is also working on developing a clause for its ship management agreement, SHIPMAN, to address compliance with decarbonization regulations. Additionally, BIMCO has already adopted various Emission Trading Scheme (ETS) clauses for different types of charter parties to assist stakeholders in meeting their environmental obligations.

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