Draft:The EU ship recycling regulation

The work on the EU's Ship Recycling Regulation (SRR) was started in 2013, after the adoption of the requirements from the Hong Kong International Convention for the safe and environmentally sound recycling of ships, also called The Hong Kong Convention. The convention was adopted by the International Maritime Organization (IMO) in 2009 and aims to improve global standards for ship recycling. By requiring ships to be recycled only in approved facilities that meet strict health, safety, and environmental standards, the hopes are that the convention will contribute to minimize environmental harm and protect workers.  The convention mandates that ships maintain an Inventory of Hazardous Materials (IHM) throughout their lifespan, helping ensure that end-of-life dismantling practices prioritize safe handling and waste management.

On of the arguments for developing a specified regulation for ship recycling in the European Union, was the fact that the EU saw how many EU ships that ended up in unsustainable recycling facilities. Europeans own around 40% of the world fleet, around 15000 ships. Among these around 10000 fly an EU Member-State flag, but only 7% of the EU-flagged ships are dismantled in the EU territory, and the rest are mostly dismantled in South Asia

After the financial crisis in the early 2010s many ship owners ended up with an unexpected overcapacity of ships, and was selling of their vessels. The phasing out of single hull oil tankers, also provided a rush to change out ones fleet. The EUs new FuelEU maritime initiative is also incentivising decarbonization of the maritime sector, which requires ships to sail on new reenables or less polluting fuels. This implies that the EU fleet already has and will undergo major changes and renewals in the coming years, thus leading to many ships being outdated or phased out, many being concerned for the end-of-life handling of these older ships . The EU considers that around 750 ships are being phased out of operations and scrapped every year

The EU ship recycling regulation aims to address the environmental and health hazards associated with ship dismantling by setting high standards for EU-flagged vessels at the end of their operational lives. One of the key components developed by the EU is the European List of Approved Ship Recycling Facilities, identifying the approved ports for all EU flagged ships to be recycled. For a ship recycling yard to be included in the list, the facilities must comply with strict environmental and worker safety standards, reducing toxic waste release and promoting safe dismantling practices. Member States report to the Commission on which facilities in their territory that comply to the requirements, and thereby get included on the list. Shipyards outside the EU can also be included on the European List but must apply to the Commission with proof of the yard’s standards .

To be included on the European List, ship recycling facilities must adhere to specific requirements set by the EU and aligned with the Hong Kong Convention and other international guidelines. Facilities need authorization, robust structural and operational standards, environmental safety protocols, and measures for monitoring health and safety risks to workers and nearby populations. This includes handling hazardous materials on impermeable surfaces, training workers and provide them with protective equipment, implementing emergency plans, and recording incidents. Operators must also submit recycling plans and completion reports, ensuring full compliance and minimizing environmental and health impacts during ship recycling activities. As of November 2024, it contains of 45 shipyards. Because the list works as a guarantee for an yards safety and validity, shipyards can both be removed and added to the list if they seize to comply to the regulation .

Additionally, to the list of approved facilities, the SRR also mandates each ship to hold an Inventory of Hazardous Materials (IHM), listing hazardous substances used in each ship's construction. By hazardous material’ means any material or substance which is liable to create hazards to human health and/or the environment. New installation of material such as asbestos and ozone-depleting substances are prohibited, and the occurrence of materials containing lead, mercury and radioactive substances, to name a few, are to be reported and restricted. This inventory, which must be maintained throughout the ship's life, helps guide shipyards and recyclers on safe waste management and reduces accidental environmental contamination. The ships also report on the operationally generated waste, meaning wastewater and residues generated by the normal operation of ships. By EU standards, any EU ship going for dismantling, all new European ships, and third-country ships stopping in EU ports need to have an inventory of hazardous materials on board. This also helps control the amount of waste and hazardous materials that are in circulation in the European waters and ports .

Arguments for a stricter regulation of the ship breaking industry  

The strongest, and most common argument for the implementation of this regulation is the benefits for the environment and the workers involved in the ship breaking industry. The effect ship recycling has on the local environment of the shipyard is nothing new and was one of the main motivations for the IMO to develop the Hong Kong Convention. Even though most shipyards in the EU operate with recycling trough dry docking, that is not the case for an extensive part of the docks where the worlds ships are recycled. Any form of recycling of ships are better than just dumping or sinking, but they do not come without environmental and human damage .

Environment

Ship breaking in South Asia, particularly in countries like India, Bangladesh and Pakistan, manage their operations through a process called beaching. Ships get to shore with the help from the high tide, and then dismantled at the beach. This method devastates coastal ecosystems, as ships are dismantled directly on mudflats, releasing toxic waste into surrounding sands, waters, and soils. Hazardous materials—like oil, heavy metals, and rust— also contaminate the environment, and as the tides come up, these pollutions are spread far beyond the area of recycling. Ship breaking yards also need a lot of space, to be able to accommodate to the increasing size of commercial and cruise ships. Surrounding nature, like mangrove forests, are often cut down to expand the space for these facilities. These are essential for coastal protection and biodiversity, thereby affecting both the marine ecosystem, but also undermining natural barriers against storms and flooding. In Bangladesh, the ship breaking industry is responsible for wiping out 21 species of fish and crustacean and endangering 11 other species and in the Alang-Sosiya area in India, the concentration of heavy metals is twenty times higher than the Indian average

Burning of cables, cutting through painted ship parts, release of ozone depleting substances also cause air pollution and expose the environment and workers to toxic fumes. Steel re-rolling practices in the region release toxic vapors due to low heating temperatures, leading to lead exposure and compounding environmental harm. While using scrap steel offers some CO2 reduction benefits over iron ore, these advantages are outweighed by the severe local pollution and health hazards, as well as the lower quality and shorter life span of down-cycled steel products. The cumulative impact of ship recycling through beaching practices continues to threaten local fishing communities, agricultural land, and public health, with devastating long-term consequences for biodiversity and the health of local populations .

Workers

Additionally, to the environmental risks associated with ship recycling, there are several risks involved for those working within the field. So much, that the International Labour Organization, has categorized ship breaking, as one of the most dangerous jobs worldwide. Some of the main issues being that the shipyards hire unskilled labor whom on top of that are not given necessary equipment, nor a safe working environment .

The polluting materials mentioned in the paragraph above also affects those working with the materials, leading to ship breaking contributing to long-term health impacts. Workers are exposed to toxic materials embedded in the ship structures, such as asbestos, heavy metals, and harmful chemicals like Polychlorinated biphenyl (PCBs) and Tributyltin (TBT). These materials are known to cause severe diseases, including cancer, respiratory illnesses, and other chronic conditions, often developing years after exposure. Many workers are forced to live near the ship breaking sites, facing substandard living conditions for themselves and their families. These living areas often have limited access to clean water and healthcare, which again exacerbating their health risks and reinforcing cycles of poverty.

In stats like Bangladesh and India, thousands of unskilled workers, including young teenagers, work in hazardous conditions without adequate safety gear or equipment. They use simple tools to manually dismantle vessels, which exposes them to accidents, including crushing injuries, explosions, and suffocation, often with limited access to emergency medical services. The conditions are exacerbated by a lack of regulatory oversight since much of the ship breaking work is informal, leading to high rates of injuries and fatalities, with many injuries going unreported .

Intended implications of the regulations

The intended aim of the EU’s Ship Recycling Regulation (SRR) is to ensure that ship recycling is conducted in a way that minimizes adverse environmental impacts and enhances the safety and health of workers, so the industry experience fewer of the issues outlined above. Providing shipowners with a choice of sustainable ship-recycling facilities for their vessels, they will hopefully be complied to select shipyards that do not harm the environment or workers’ health. Through detailed reporting and record-keeping requirements, the SRR promotes environmental and human rights transparency in the ship recycling industry. This accountability helps build trust among stakeholders, including EU citizens, who hopefully gain confidence that their environmental and social standards are being upheld.

The regulation encourages the reuse of materials in a sustainable way, leading to more efficient resource use and recycling, contributing to the worldwide and regional need for raw materials. Valuable materials, such as steel, copper, aluminum and zinc, will be able to rejoin the circular economy. Only from steel alone, there are huge potential savings in raw materials, energy and greenhouse gases. This approach can stimulate growth in the EU’s recycling sector, supporting a circular economy model.

The SRR also contribute to EUs positioning themselves as one of the leaders within sustainable shipping practices. Even though the SRR is, as mentioned, buids on the Hong Kong Convention, it goes further in its regulations. Requiring EU-flagged ships to be dismantled at authorized sites that meet environmental and safety standards, the SRR mandates additional hazardous waste tracking and applies to all ships within EU jurisdiction. The EU Ship Recycling Regulation (SRR) enhances the Hong Kong Convention by banning beaching and ensuring labor protections. SRR-listed facilities undergo independent certification, with NGOs allowed to submit compliance complaints. Non-EU ships sold for scrapping in Europe still fall under the Waste Shipment Regulation EU ships and non-EU vessels in EU waters must carry an Inventory of Hazardous Materials (IHM), and the SRR exempts EU ships from the Waste Shipment Regulation to simplify compliance. These are safeguards not included in the Hong Kong Convention . By setting these standards for their own territory and ships, the EU are trying to encourage similar standards globally, pushing for responsible ship recycling practices globally. This influence strengthens the EU’s position as a global advocate for environmental and labor standards .

Challenges

The major objectives to the regulation that can be found in the literature is issue of flags of convenience, how to achieve global enforcement and the uncertainty involving contradictory maritime legal frameworks.

Flags of Convenience

As in many other parts of the shipping industry, flags of convince, is also a tool used by many in regard to ship recycling . Flags of Convenience (FOC) refer to the practice where a ship is registered in a country different from that of its owners or operators. This allows the ship to fly the flag of that country, often chosen for operational or financial advantages . When an ship is reaching its end of life, some shipowners choose to change the flag to an non-EU state which they know are more lenient in terms of regulatory demands . Despite European shipowners’ control over 40% of the world's merchant fleet, with Greece being the leading country in ship ownership globally. However, only 22% of these vessels are registered under the flag of an EU Member State. In 2014, only 7.7% of all beached ships (by gross tonnage) were still registered under an EU flag, although 32% were still under EU ownership. Indeed, almost 73% of the world’s fleet is flagged in a country other than the country of beneficial ownership .

Global enforcement

Another challenge for the SRR is the price and scope of global enforcement. While the EU has set a high bar for environmental and safety standards, non-EU recycling facilities, particularly in South Asia where much ship breaking occurs, often lack the infrastructure or means to meet these standards. Critics point out that for a global industry like shipping, unilateral EU policies alone may not be enough to ensure safe, sustainable recycling worldwide. Ways to contribute to the upgrade of facilities in these countries are in demand

Contradicting laws and cash buyers

Another challenge for the regulation that is mentioned, is how it can clash with other regulations and laws. For example, when a ship receives a recycling certificate under the Hong Kong Convention, it may also be classified as hazardous waste under the Basel Convention. Throughout the certificate's validity, which can last up to three months, the ship's owners may face the risk of arrest in some ports for violating the Basel Convention . Trough the EUs Waste Shipment Regulations they intend to impliment the same rules as the Basel Convention (WSR). However, when implementing the SRR, the EU opted to unilaterally exclude EU-flagged vessels from the scope of the existing WSR . This decision effectively created an unauthorized exemption from the Basel Regime for certain types of hazardous waste, lacking sufficient justification . Additionally, many get around these rules by selling their vessels to scrap dealers known as cash buyers, before the ship get classified as waste. These middlemen arrange for the ships to be dismantled at their final destinations. By using cash buyers, shipowners can maximize the sale price while sidestepping the legal, financial, and other responsibilities tied to ship breaking . The use of shell companies and convenient flags makes it extremely challenging for authorities to trace or hold cash buyers—and the original shipowners—accountable for potential misconduct. Another critic of the regulation is that it lacks in addressing the real generators of waste, which are the ship owners, but instead put vague rules on port and flag States

Summary

The EU’s Ship Recycling Regulation (SRR) represents a critical step toward safer, more sustainable ship recycling practices. By mandating that EU-flagged vessels use approved facilities with strict safety and environmental standards and requiring an Inventory of Hazardous Materials (IHM) on board, the SRR aims to minimize health risks and environmental harm associated with ship dismantling. While this regulation sets a high bar within the EU, issues such as the prevalent use of flags of convenience and limited enforcement in non-EU regions pose ongoing challenges to achieving a truly global standard. Nonetheless, the SRR strengthens the EU’s position as a leader in sustainable maritime practices, setting an influential example for the international community.