BIMCO has launched a new subcommittee to develop a Biofuel Clause for Time Charter Parties, responding to the increasing use of biofuels in shipping amid evolving regulatory frameworks such as the EU ETS, FuelEU Maritime, and the IMO Net-zero Framework, according to BIMCO's release.
The subcommittee, which includes shipowners, charterers, P&I representatives, and technical experts, first met on 7 April 2025.
Their work will focus on defining the scope and standards for biofuels, clarifying supply and handling procedures, and ensuring compliance with performance and regulatory requirements.
The clause will address practical issues such as blending biofuels with conventional fuels, onboard storage, and implications for speed and consumption warranties.
BIMCO aims to offer a flexible yet robust contractual solution to support compliance and maintain vessel reliability.
A draft clause is expected to be presented at BIMCO’s Documentary Committee meeting in October 2025.
Additionally, BIMCO plans to establish a sounding board with industry stakeholders to review and provide feedback on the draft clause.
BIMCO stated its commitment to developing standardized solutions to support the maritime industry's decarbonisation goals.
BIMCO is a global shipping association that develops standard contracts, clauses, and guidelines to facilitate international shipping operations and promote safe, efficient, and sustainable maritime practices.
EU ETS (European Union Emissions Trading System) is a regulatory framework that limits greenhouse gas emissions from various sectors, including shipping within the EU.