The Baltic and International Maritime Council (BIMCO) is taking proactive steps to address the challenges posed by the increasing use of biofuels in shipping. As regulatory frameworks such as the EU ETS, FuelEU Maritime, and the upcoming IMO Net-zero Framework continue to evolve, biofuels are becoming a more attractive option for reducing emissions. However, their integration into charter agreements is complex, raising questions around fuel quality, engine compatibility, and liability.
To address these issues, BIMCO has formed a subcommittee comprising shipowners, charterers, P&I representatives, and technical experts. The subcommittee met for the first time in April 2025 and will focus on defining the scope and standards for biofuels, clarifying their supply and handling, and ensuring their use aligns with performance expectations and regulatory obligations. The clause will also consider practical realities such as blending with conventional fuels, onboard storage, and the implications for speed and consumption warranties.
The goal of the subcommittee is to provide a flexible yet robust contractual solution that supports compliance without compromising vessel reliability. A draft clause is expected to be presented at BIMCO’s documentary committee meeting in October 2025. To ensure the clause reflects the practical needs and perspectives of the wider maritime community, BIMCO will establish a sounding board comprising industry stakeholders.
By developing a standardized clause for biofuels, BIMCO aims to facilitate the use of biofuels in shipping and support the industry’s transition to more sustainable and environmentally friendly fuels. The association believes that this proactive step will help to address the legal and operational challenges posed by biofuels and provide a framework for their safe and effective use. The development of the clause is a significant step towards reducing emissions in the shipping industry and supporting the achievement of net-zero goals.