On October 28, 2023, the European Parliament's Environment Committee opposed the European Commission's proposal to add two ship recycling yards named Shree Ram Vessel Scrap and YSI Recyclers located in Alang-Sosiya, Gujarat, with 48 votes against, 26 in favor, and 5 abstentions. These two yards were to be added as the first ship recycling centers in India to the EU's approved list, and this opposition could have significant impacts on the shipping industry and the environment.
Environmental Challenges and Standards
This vote came after months of lobbying by shipping industry groups, environmental organizations, and European steel producers. Opponents emphasized that the "beach recycling" method used in these yards cannot meet EU environmental standards due to issues with controlling oil pollution, heavy metals, and other hazardous materials. This is while the yards were striving to improve infrastructure and environmental controls.
Economic and Social Consequences
Opponents also expressed concerns about upstream and downstream waste management, particularly regarding recycled steel sent to local factories that have not yet been assessed. The NGO Shipbreaking Platform welcomed this vote, seeing it as a strong message to the European Commission and emphasized that the approval of these yards could lead to the degradation of existing environmental laws.
In contrast, shipping groups including BIMCO and ECSA supported the Commission's proposal, stressing that approval should be based on the individual compliance of the yards with standards, not on location or recycling method. They also warned that the EU's approved list is facing a shortage of adequate recycling capacity as more ships approach the end of their life.
This disagreement reflects a larger divide in the EU about how to regulate an industry that is primarily concentrated in South Asia. Overall, more than 95% of global ship recycling takes place in Bangladesh, India, Pakistan, and Turkey. All of these countries have also joined the Hong Kong Convention, which sets international requirements for the safe and environmentally sound recycling of ships.
The European Commission has also acknowledged the weaknesses in the current approval system and stated that shipowners often flag ships outside the EU to evade requirements. The recent committee vote does not mean a final rejection of the Indian yards, but it indicates the challenges ahead for the approval of these yards in the future.
