Shipping industry body BIMCO has adopted new FuelEU Maritime and EU Emissions Trading System clauses for use in ship sale and purchase agreements.

Approved by BIMCO’s documentary committee, the clauses are intended to make it clearer how regulatory obligations are handled between buyers and sellers during a transaction, BIMCO said in a statement on its website last Thursday. 

The FuelEU clause places responsibility on the seller to ensure compliance up to the point of delivery, including providing verified compliance data for previous reporting periods.

After the vessel has been delivered, full responsibility for FuelEU compliance passes to the buyer.

Under the ETS clause, sellers must meet emissions reporting requirements and surrender allowances for emissions generated before delivery.

Buyers become responsible for emissions allowances from delivery onwards, with safeguards included to protect them against any pre-delivery non-compliance by the seller.

“Regulations such as the FuelEU Maritime and EU ETS are complex and reshape our industry,” Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, said.

“Therefore, contractual clarity is essential.

“The new clauses offer parties the tools they need to manage compliance obligations and avoid uncertainty during ship transactions.”

BIMCO said the clauses are designed to help the industry manage the growing impact of environmental regulation on ship transactions.