Shipping industry welcomes the proposed inclusion of Indian ship recycling yards on the European List

BIMCO, European Shipowners | ECSA, the International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO, and World Shipping Council (WSC) welcome the European Commission’s proposal to add two Indian ship recycling facilities to the updated European List of Ship Recycling Facilities.

The shipping industry has advocated for the inclusion of compliant non-OECD yards since the entry into force of the EU Ship Recycling Regulation (EU SRR). Beyond its practical significance for shipowners, the proposal sends a strong political signal: non-OECD yards that meet the EU SRR’s safety and environmental requirements can and should be recognised.

The inclusion of these two facilities is an important step towards resolving the structural capacity shortage on the European List. With industry estimates1 pointing to a significant increase in the number of vessels reaching the end of their operational life over the coming decade, the availability of sufficient compliant recycling capacity is essential. A European List that reflects the reality of global recycling capacity is a precondition for the legislation to function as intended: as an incentive for safe and environmentally sound ship recycling worldwide.

This proposed update reflects years of substantial investment and effort, following the adoption of the Hong Kong Convention (HKC) in 2009. Inclusion on the European List should be determined solely on whether a facility meets the EU SRR’s safety and environmental requirements, based on objective assessment and inspection. The yards concerned have made considerable capital investments to upgrade their infrastructure, safety systems, and environmental management to meet the HKC and EU SRR standards. These efforts embody the very purpose of the EU SRR: to reduce disparities between operators in the EU, in OECD and in relevant third countries in terms of workplace health and safety and environmental standards, in support of the globally applicable Convention.

Other yards in the region followed the same path and are soon expected to meet the EU SRR requirements. With more than 95% of global ship recycling taking place in four countries - Bangladesh, India, Pakistan, and Turkey - all parties to the IMO HKC, it is essential to approve facilities in these countries where substantial improvements have been made in securing safe and environmentally sound ship recycling, as soon as they meet the requirements of EU SRR.

This visible progress has been supported by a wider ecosystem of stakeholders: downstream waste management facilities that ensure hazardous materials are treated in an environmentally sound manner, medical and hospital services that underpin worker health and safety, and the Indian authorities, who have put in place a comprehensive statutory framework for ship recycling and supported the certification of compliant facilities.

European Shipowners | ECSA, the International Chamber of Shipping (ICS), BIMCO, INTERCARGO, INTERTANKO, and World Shipping Council (WSC) encourage policymakers to swiftly approve and adopt the updated EU list.

Read the full Joint Industry Statement here.