Shipping Industry Bodies Welcome EU Proposal to Add Two Indian Ship Recycling Yards to Approved List

Six major shipping industry associations have welcomed a European Commission proposal to add two Indian ship recycling facilities to the updated European List of Ship Recycling Facilities. BIMCO, the European Community Shipowners’ Associations (ECSA), the International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO and the World Shipping Council (WSC) issued a joint statement backing the move.

Why does this matter for the industry?

The associations said they have pushed for the inclusion of compliant non-OECD yards since the EU Ship Recycling Regulation (EU SRR) came into force, arguing the proposal carries both practical and political weight. Beyond adding capacity, the groups said it signals that non-OECD yards meeting the EU SRR’s safety and environmental standards can and should be recognised on the list.

The associations described the addition as an important step toward resolving a structural capacity shortage on the European List, pointing to industry estimates of a significant rise in vessels reaching end-of-life over the next decade, a trend that makes sufficient compliant recycling capacity essential.

What does this mean for the yards involved?

According to the associations, the two Indian facilities have made considerable capital investment to upgrade infrastructure, safety systems and environmental management to meet Hong Kong Convention (HKC) and EU SRR requirements, work they said reflects years of effort since the HKC’s adoption in 2009. They argued inclusion on the European List should rest solely on whether a facility meets EU SRR safety and environmental standards, based on objective assessment and inspection.

The groups noted other yards in the region are following the same path and are expected to qualify for the EU SRR soon.

How significant is South Asia to global ship recycling?

More than 95 percent of global ship recycling currently takes place across four countries, Bangladesh, India, Pakistan and Turkey, all parties to the IMO’s Hong Kong Convention. The associations said it is essential that compliant facilities in these countries be approved as soon as they meet EU SRR requirements, given the concentration of global recycling capacity in the region.

They also credited a wider support ecosystem behind the Indian yards’ progress, including downstream waste management facilities handling hazardous materials, medical and hospital services supporting worker health and safety, and Indian authorities, who have put in place a statutory framework for ship recycling and supported certification of compliant facilities.