Climate clause from Bimco ready after eight months of deliberations
CII: Bimco has released a long-awaited clause clarifying which of two parties will be responsible for handling the new Carbon Intensity Indicator (CII) climate rules: shipowners or operators.
BY NIKLAS KRIGSLUND
A highly anticipated contract clause that will help shipping navigate new – and complicated – environment regulation has finally landed.
Bimco has publicized a clause that makes it clear who has the responsibility for whether vessels live up to the future CII rules.
This standard clause comes after months of debate about whether shipowners or operators must shoulder the responsibility if something goes wrong.
And the answer is operators in time-charter contracts.
”After more than eight months of deliberation and consultation, we have arrived at a clause which serves as an excellent starting point for negotiations for owners and charterers and which is workable in practice,” says Nicholas Fell, chairperson of Bimco’s Documentary Committee, in a press release announcing the clause.
Disagreement within Bimco on responsibility for ships poor climate ratings
Coming into force in January, 2023, the CII regulation ranks ships by their CO2 emissions. Shipowners, carriers, and operators have called for a standard clause that could be added to contracts in light of the new rules.
CII recently faced criticism from a number of large carriers, including the world’s biggest, MSC, which said the rules won’t work as intended.
Bimco has previously told ShippingWatch that it has been difficult to author a text that all parties could agree with, which has prolonged work.
Bimco informs that the clause will be revised ”as the underpinning regulatory regime develops,” Fell says.