FuelEU Maritime regulations are set to reduce the greenhouse gas intensity of energy used by ships, promote shore-side electricity, and accelerate the adoption of renewable fuels of non-biological origin, such as e-ammonia and e-methanol. With limited guidance available so far, BIMCO is developing a FuelEU clause for time charterparties, anticipated for release in the latter half of 2024.

The challenge lies in creating a comprehensive FuelEU clause for time charterparties that addresses all potential scenarios. This is complex due to the diverse approaches to managing credits/penalties, including banking, borrowing, and pooling, each presenting unique and novel contractual considerations.

Although a 'standard clause' is not yet available, we advise owners and charterers to carefully consider how FuelEU will be handled in any charterparties currently under negotiation.

Key considerations for parties regarding FuelEU include:

**Administrative Compliance:** Parties have the option to exclude the EU/EEA from the vessel's trading range, thereby avoiding the regulation's application. If EU/EEA trade is permitted, owners will typically be responsible for the administrative aspects of compliance, including the preparation and submission of monitoring plans. Consequently, charterers would likely be tasked with providing owners with the necessary information for accurate reporting.