DENMARK Trends and Developments Contributed by: Johannes Grove Nielsen and Camilla Søgaard Hudson, Bech-Bruun
entity, irrespective of whether the ship-owner or the ISM company has any control over the ship’s emission – eg, in cases where the ship has been chartered. The EU ETS will result in several additional costs, both for administration and for acquiring allow - ances. The EU ETS aims to adhere to the polluter pays principle and has thus incorporated access for the ship-owner to pass on costs to the entity ultimately responsible for the operation of the ship, or for the purchasing of fuel. However, the practical enforcement of this prin - ciple is associated with significant challenges, particularly in the context of national imple - mentations. While Sweden and Norway have effectively incorporated Article 3gc of Direc - tive 2023/959 into their national laws, ensuring clear pathways for cost recovery, Denmark’s approach raises concerns about the sufficiency of legal grounds for reimbursement. Addition - ally, ship-owners face potential risks where the entity ultimately responsible for the operation of the ship, or for the purchasing fuel, is a non-EU entity, as the ability to pass on costs may be compromised without robust contractual provi - sions.
To mitigate these risks, ship-owners must proac - tively incorporate clauses, such as those provid - ed by BIMCO, into their contracts to ensure that the costs of surrendering allowances are recov - erable under applicable national law, especially outside EU jurisdictions.
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