Legal Considerations for the use of Electronic Bunker Delivery Notes

Getting to Zero (Paper) - Bunkerspot Magazine, August 2023 Article Summary

July 10, 2023, the IMO’s Marine Environment Protection Committee (MEPC 80) affirmed use of electronic

bunker delivery notes - “EBDN’s.” Steve Simms’s Bunkerspot article addresses the legal considerations of

using EBDNs and also as EBDNs become more widely used, the legal challenges to not using them.

These considerations and challenges are important for bunker sellers and buyers, to not just comply

with but to successfully and profitably innovate. EBDNs are central to the increasing requirements for

marine fuel carbon and other emission reduction, including accurate IMO regulation-required Energy

Efficiency of Existing Ships (EEXI) and Carbon Intensity Indicator (CII) reporting, moving toward and

beyond 2050.

Non-compliant BDNs pose issues in quality disputes and emissions reporting. BDN accuracy and

verifiability are vital due to potential safety risks and legal implications. As the maritime industry shifts

towards decarbonization, BDNs play a crucial role in Energy Efficiency of Existing Ships (EEXI) and

Carbon Intensity Indicator (CII) reporting, becoming essential records for confirming compliance.

The adoption of Electronic Bunker Delivery Notes (EBDNs) offers numerous legal benefits and risks.

EBDNs enhance compliance monitoring and can expedite record-keeping, retrieval, and audits. EBDNs

provide transparency and traceability through digital signatures, time-stamping, and blockchain

technology. They simplify reporting, facilitate compliance with evolving regulations like FuelEU

Maritime, and improve dispute resolution by providing accurate and authenticated records.

While EBDNs offer advantages, users must ensure compliance with electronic signature laws, data

protection regulations, and industry guidelines to avoid legal liabilities. Cybersecurity measures,

redundancy, and proper storage are critical for maintaining EBDN reliability. EBDN systems must meet

legal requirements for authenticity and admissibility as evidence in various jurisdictions.

EBDNs help bunker suppliers align with evolving legal frameworks, industry standards, and customer

demands for accurate emissions reporting and compliance. A well-designed EBDN system can streamline

processes, reduce costs, and provide a competitive edge. The maritime industry's trajectory towards

decarbonization further underscores the importance of adopting EBDNs to ensure legal compliance,

accuracy, and efficiency.

Read the full article and details of considerations here: Getting to Zero (Paper), Bunkerspot | August 2023