Circular: EU ETS clause

Monday 11th December 2023

To all ship management members and insurance brokers

The European Union Emission Trading Scheme (EU ETS) will come in to force on 1st January 2024, the cost to the shipping industry will be in the billions.  

Ship managers will have an important role in managing the scheme for their owners. It is therefore vital ship management agreements set out the responsibilities and liabilities for doing so.

Robert Hodge, ITIC’s General Manager, is a member of BIMCO’s documentary committee, which includes other shipping stakeholders. During the most recent meeting, BIMCO adopted a groundbreaking ETS allowances clause for its ship management agreement, SHIPMAN, and three ETS clauses tailored for voyage charter parties. These clauses were crafted to facilitate compliance with evolving regulations, offering a strategic approach to navigating the changing nature of carbon emissions in the maritime sector.

The clause has now been approved by BIMCO’s Documentary Committee and is ready for incorporation into SHIPMAN:

ETS – SHIPMAN EMISSION TRADING SCHEME ALLOWANCES CLAUSE 2023

Robert will be giving an overview of the EU ETS scheme and the new BIMCO clause in a webinar on Wednesday 13th December at 10am (GMT). The webinar will last 30 minutes and be followed by a Q&A. The topics covered will include:

• The risks of the scheme
• An overview of the ETS clause
• What managers should be doing to protect themselves

If you are unable to attend the live webinar, but would still like to watch, please register to attend and a recorded version will be sent to you.

Click here to register to watch the webinar