HFW Continues To Help BIMCO Prepare Shipping Industry For Decarbonisation
Global, sector-focused law firm HFW has continued to help BIMCO draft a series of industry standard clauses to prepare the shipping industry for decarbonisation, ahead of the implementation of complex new carbon intensity (CII) regulations that will significantly impact the future operation of vessels worldwide.
MARPOL's CII regulations, which take effect on 1 January 2023, will require ships to reduce their carbon intensity on an ongoing basis, with CII Ratings awarded based on annual assessments.
BIMCO's 'CII Operations Clause for Time Charter Parties' seeks to assist owners and charterers in contracturally navigating and managing the new regulations.
HFW London partner and shipping emissions expert Alessio Sbraga formed part of the drafting sub-committee for this clause. HFW was the only law firm on the sub-committee.
Alessio Sbraga, Partner, HFW: "The CII regulations will significantly impact the future operation of ships and this represents a significant challenge for all the main stakeholders in the physical transport chain. The CII Clause reflects the fact that an adjusted contractual relationship will be required to meet the challenges thrown up by the CII regulations and to, ultimately, reduce carbon intensity in practice. It provides a workable blueprint promoting collaboration and cooperation between the parties going forward in what should now be properly viewed as a shared commercial adventure in a time charter context. The CII Clause is a timely and important addition to BIMCO's suite of carbon clauses which I am very privileged to have contributed to as part of BIMCO's drafting sub-committee."
HFW has helped BIMCO draft several standard contract and clauses, including an emissions trading scheme allowances clause, a "faster, simpler" ship sale and purchase agreement, and a model clause addressing force majeure events occurring under contracts.
The firm also helped BIMCO draft "game-changing" carbon emissions clauses, the industry's first standard contract for autonomous shipping, its first cyber security clause, the industry's first standard offshore decommissioning contact, and two clauses relating to the International Maritime Organization's 2020 sulphur emission rules.
HFW is widely recognised as the world's leading shipping and maritime law firm, and has been serving clients in the industry for almost 140 years. The firm has more than 200 shipping lawyers and nine Master Mariners across its global network, specialising in dry shipping, admiralty and crisis management, and transactional work.
HFW has more top-tier rankings for shipping in Chambers and The Legal 500 than any other law firm, and its lawyers have featured in Lloyd's List's ranking of the top 10 lawyers and 100 most influential people in the shipping industry for four consecutive years.
The Lawyer’s Litigation Tracker shows that HFW has handled over 60% more shipping litigation cases in the English Courts since 2015 than its nearest rival.
To read BIMCO's CII Operations Clause for Time Charter Parties, visit: https://www.bimco.org/contracts-and-clauses/bimco-clauses/current/cii-operations-clause-2022
HFW is a leading global law firm in the aerospace, commodities, construction, energy, insurance, and shipping sectors. The firm has more than 600 lawyers, including 185 partners, based in offices across the Americas, Europe, the Middle East and Asia Pacific. HFW prides itself on its deep industry expertise and its entrepreneurial, creative and collaborative culture.
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