EU Adds Two Indian Shipyards to Approved Recycling List

The European Commission has proposed adding two Indian ship recycling facilities to the European List of Ship Recycling Facilities, marking the first time Indian yards have been recommended for inclusion under the EU Ship Recycling Regulation.

Which Indian facilities have been proposed for inclusion?

The two facilities proposed for the 16th edition of the European List are YSI Recyclers LLP and Shree Ram Vessel Scrap Pvt Ltd, both located in the Alang ship scrapping cluster in Gujarat, the world’s largest concentration of shipbreaking capacity. According to the draft decision, the Commission assessed both the information submitted by the applicants and additional evidence it gathered independently before confirming the facilities demonstrated compliance with the regulation’s environmental, safety, technical and governance requirements.

What is the timeline for this proposal to be finalised?

The draft act, published on July 22, is open for public feedback until August 30, 2026, midnight Brussels time. The Commission said it is seeking views on the proposal, with feedback to be considered before the initiative is finalised. The same update would also remove four facilities in France, Norway and Turkey from the list.

Why does this inclusion matter for India’s ship recycling sector?

If approved, the decision would end a decade-long exclusion of South Asian yards from the European regime, under which EU-flagged vessels are required to use a facility on the European List when sent for demolition. The proposal reflects substantial investments made by Indian recycling facilities over the past decade, with more than 110 Indian yards currently holding a Hong Kong Convention Statement of Compliance issued by International Association of Classification Societies members. More than 30 Indian yards have reportedly applied for EU approval, with several having completed the required compliance process.

What did industry bodies say about the proposal?

BIMCO welcomed the move as a positive step toward a more objective, performance-based approach to ship recycling. European Shipowners’ Secretary General Sotiris Raptis called the step long-awaited, saying it rewards the investment made by the yards to meet EU standards, and urged policymakers to finalise and adopt the list without further delay. Simon Bergulf, Vice President of Environment and Climate at the World Shipping Council, said the yards had invested heavily to address findings from earlier European Commission inspections, calling their potential inclusion an important milestone showing that one of the world’s principal ship recycling regions can comply with the EU Ship Recycling Regulation.

What does this mean for Alang and India’s broader recycling ambitions?

The proposed inclusion is expected to strengthen confidence in India’s ship recycling sector, particularly at Alang, where significant investments have been made to align operations with international standards following the entry into force of the Hong Kong International Convention in June 2025. Industry observers believe the decision could pave the way for more Indian facilities to be added to the European List in future updates, reinforcing India’s position as a global leader in sustainable ship recycling.