GMS Pushes EU to Recognise India’s Ship Recycling Capacity

Why It Matters

Approving Indian yards would expand Europe’s sustainable recycling capacity, lower emissions, and protect millions of jobs while aligning with climate commitments. It also resolves a regulatory clash that hampers global ship‑breaking standards.

Key Takeaways

• 110 Indian yards hold HKC compliance, none EU‑approved
• Alang recycles 4.5 M LDT/yr, exceeds EU‑approved capacity
• Recycling at Alang cuts steel CO₂ by 58 %
• Basel Ban Amendment blocks Indian yards despite modern standards
• EU needs extra capacity for 15,000 ships by 2032

Pulse Analysis

The EU Ship Recycling Regulation was introduced to ensure that vessels are dismantled in environmentally sound facilities, but its implementation has been hampered by geopolitical constraints. While the Basel Convention’s Ban Amendment was designed to curb hazardous waste flows from OECD to non‑OECD nations, it now blocks Indian yards that already meet the Hong Kong Convention’s rigorous standards. GMS argues that a facility‑level assessment, rather than a blanket geographic ban, would reconcile the two regimes and unlock a pool of compliant yards ready to serve European ship owners.

Environmental performance is a decisive factor in the debate. Lifecycle analyses show that recycling steel at Alang generates 58 % less CO₂ than producing virgin steel in Europe, and over 98 % of ship materials are recovered. Moreover, transporting a Panamax bulker to a European yard adds roughly 3,800 tonnes of CO₂, while diverting the same vessel to Alang reduces that figure dramatically. Modern Indian yards employ concrete‑floor layouts, closed‑loop drainage, and strict hazardous‑material inventories, matching or exceeding EU expectations for pollution control and worker safety.

From a market perspective, the EU’s current list lacks the capacity to meet the projected demand of 15,000 vessels needing dismantling by 2032. India’s ship‑recycling sector sustains about 15,000 direct jobs and half a million indirect livelihoods, making it a critical economic engine. By recognizing qualified Indian yards, the EU could secure a reliable, low‑carbon source of recycled steel, meet its sustainability targets, and avoid a looming capacity shortfall that could drive ship owners to seek non‑EU compliant solutions.