The proposed extension of the EU-ETS to shipping – BIMCO´s ETS – allowances (ETSA) clause for time charter parties 2022 filling a legal gap

Abstract

This Chapter outlines the proposed inclusion of shipping to the European Union’s Emissions Trading System (EU-ETS) as of November 2022, as well as BIMCO’s ETS — emission trading scheme allowance clause for Time Charter Parties 2022, which covers a legal gap on the very important question on who the end payer of the emission allowances under the proposed system will be. According to the present proposal, the Shipping Company, which is defined as the Shipowner or any other person that has assumed responsibility for the operation of the ship from the Shipowner, is responsible for compliance.