BIMCO Adopts Energy Saving Device Retrofit Addendum
The shipping industry is working to improve fuel efficiency and ship performance to address decarbonization requirements, new regulations and rising operational costs. To support these developments, BIMCO has adopted the Energy Saving Device Retrofit Addendum 2026.
The new contractual framework is designed to facilitate the installation of energy-saving devices during the period of a time charter. It provides owners and charterers with a flexible mechanism for agreeing how the costs, time implications, and fuel-saving benefits associated with retrofit projects should be allocated.
"The new addendum addresses a long-standing commercial challenge. Energy-saving technologies have become increasingly sophisticated, but investments in retrofit projects have been complicated by a misalignment of commercial interests between owners and charterers," says Stinne Taiger Ive, Deputy Secretary General & Director of Contractual Affairs at BIMCO.
When shipowners are funding the purchase and installation of equipment on board a ship, some or all of the operational benefits often accrue to charterers during the charter period.
As a result, the incentive for parties to implement retrofit projects has been reduced, even when such projects could generate significant fuel savings and environmental benefits.
The new addendum addresses this gap by allowing parties to customise how costs and benefits are shared for each project, rather than prescribing a single commercial model.
"The shipping industry is under increasing pressure to cut emissions and improve energy efficiency. Our objective has been to create a practical tool that can help unlock investments in retrofit solutions and support the industry's decarbonisation efforts," says Nicholas Fell, Chairperson of BIMCO's Documentary Committee.
The addendum has been drafted as a technology-neutral framework to accommodate a broad range of current and future energy-saving technologies. In addition, as environmental regulations continue to evolve, one of the addendum's key features is a framework that addresses both existing and future environmental schemes.
