The BIMCO Emissions Trading Scheme Clause for Memoranda of Agreement 2025 was formally adopted in December 2025, reflecting BIMCO’s commitment to providing clear and practical contractual tools that address the growing complexity of environmental regulation in the sale and purchase of vessels. Developed by a BIMCO subcommittee comprising shipowners, brokers, legal specialists, and P&I experts, and supported by broad stakeholder consultation, the clause offers a clear and practical framework for allocating responsibilities between buyers and sellers of vessels falling within the scope of an emissions trading scheme. The clause builds on the established terminology of earlier ETS clauses and maintaining the scope to cover any applicable emission scheme(s) worldwide extending beyond the European Emission Trading Scheme (EU ETS) and anticipating future cap and trade mechanisms adopted by competent authorities. Sellers’ Obligations Prior to Delivery Under the clause, the sellers are responsible for compliance up to and including the moment of delivery. This includes fulfilling all reporting obligations required under the relevant emission scheme(s) and, where applicable, submitting a verified partial emission report that sets out the vessel’s emissions for the portion of the reporting period during which they owned the vessel. Sellers also remain responsible for surrendering the emission allowances corresponding to all predelivery emissions. This structure ensures that no emissions-related liabilities arising before delivery are transferred to the buyers. Importantly, this approach differs from the regime under FuelEU Maritime. Whereas the EU ETS places predelivery liabilities with the sellers, FuelEU Maritime requires the buyers to assume the sellers’ accrued compliance balance at delivery, meaning these liabilities must be financially settled between the parties at the time ownership transfers. Transfer of Responsibilities to Buyers From the point of delivery, buyers t