BIMCO (International Association of Shipowners) has recently approved the Energy Saving Device Retrofit Addendum 2026, aimed at supporting investment in energy upgrade projects in the shipping industry. This amendment is designed to improve fuel efficiency and the performance of ships in line with decarbonization requirements and reduce operational costs.
New Framework of the Amendment
The new contractual framework allows ship owners and charterers to agree on the costs, timing, and benefits of fuel savings resulting from upgrade projects. This amendment is designed as a practical tool to facilitate investment in energy upgrade solutions and assist the industry's decarbonization efforts.
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Business Challenges and New Opportunities
Stinne Taiger Ivø, Deputy Secretary-General and Director of Contractual Affairs at BIMCO, stated: "This amendment addresses the long-standing business challenges in the shipping industry. Energy-saving technologies have become increasingly complex, but investment in upgrade projects has been complicated due to misalignment of business interests between owners and charterers." Under this amendment, parties can customize how costs and benefits are shared for each project, allowing them not to follow a single business model. This enables ship owners to supply and install equipment while some or all operational benefits typically accrue to charterers during the charter period.
Nicholas Fell, Chair of BIMCO's Documentation Committee, also pointed out the increasing pressure on the shipping industry to reduce greenhouse gas emissions and improve energy efficiency, stating: "Our goal is to create a practical tool that can unlock investment in energy upgrade solutions and support the industry's decarbonization efforts." This amendment is designed as an indirect technology framework to encompass a wide range of current and future energy-saving technologies. One of the key features of this amendment is a framework that gradually responds to existing and future environmental regulations.
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