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

BIMCO, ECSA, INTERCARGO, INTERTANKO, and WSC have expressed their support for the European Commission's proposal to include two Indian ship recycling yards on the updated European List of Ship Recycling Facilities. This move to recognize non-OECD yards that adhere to the EU Ship Recycling Regulation (EU SRR) is long overdue and sends a powerful political message.

The EU SRR, in force, has long called for the inclusion of compliant non-OECD facilities. The addition of these two facilities is crucial in addressing the considerable capacity shortage on the European List. With an anticipated surge in vessels reaching the end of their operational life in the next decade, sufficient compliant recycling capacity is of utmost importance.

The European List, accurately reflecting global recycling capacity, is the foundation upon which the legislation operates, incentivizing safe and environmentally sound ship recycling worldwide. The proposed update aligns with the years of investment and effort made since the adoption of the Hong Kong Convention (HKC) in 2009. The inclusion of a facility on the European List should depend solely on whether it meets the EU SRR's safety and environmental requirements, following objective assessment and inspection.

The Indian yards have significantly invested in upgrading their infrastructure, safety systems, and environmental management to meet the HKC and EU SRR standards. This effort is in line with the EU SRR's goal of reducing disparities in workplace health and safety and environmental standards between EU, OECD, and relevant third countries.

Other yards in the region are also expected to meet the EU SRR requirements soon. Given that over 95% of global ship recycling occurs in Bangladesh, India, Pakistan, and Turkey, it is vital to approve facilities in these countries once they meet the EU SRR's criteria. The progress made by the Indian yards has been supported by a network of stakeholders, including downstream waste management facilities, medical and hospital services, and the Indian authorities.

They have established a robust statutory framework for ship recycling and backed the certification of compliant facilities. European shipowners, ECSA, ICS, BIMCO, INTERCARGO, INTERTANKO, and WSC urge policymakers to expedite the approval and adoption of the updated EU List.