Why Are 110 Certified Indian Ship Recycling Yards Frozen Out by Brussels?

Why Are 110 Certified Indian Ship Recycling Yards Frozen Out by Brussels?

TradeWinds
TradeWindsMar 26, 2026

Why It Matters

Excluding certified South Asian yards undermines global ship‑recycling standards and limits the EU’s ability to drive meaningful environmental and safety improvements.

Key Takeaways

  • EU list contains 41 yards, none in India
  • 110 Indian yards hold HKC compliance certificates
  • South Asia processes 80% of global ship recycling tonnage
  • HKC shifts oversight to flag and recycling states
  • BIMCO urges EU to recognize certified South Asian yards

Pulse Analysis

The European Commission’s 15th edition of the European List of Ship Recycling Facilities now names 41 approved yards, all located in the EU, Norway, the United Kingdom, Turkey or the United States. Despite more than 110 Indian yards and 23 Bangladeshi yards holding Hong Kong Convention (HKC) Statements of Compliance, none appear on the list. This exclusion persists even though South Asian facilities process roughly 80 % of the world’s ship‑recycling tonnage each year. As a result, EU‑flagged vessels are still steered toward these yards, exposing the regulation’s limited geographic reach.

The HKC offers a multilateral alternative that aligns ship‑flag states and recycling states under a single, lifecycle‑based certification system. By moving responsibility from export‑import ministries to authorities familiar with maritime operations, the convention delivers more consistent oversight, dynamic surveys, and real‑time permits. Its design builds on the Basel Convention’s Prior Informed Consent procedure while adding ship‑specific technical criteria, thereby reducing administrative delays and improving worker safety. Industry groups such as BIMCO argue that the HKC’s proven audit trail makes it a more effective tool than the EU’s siloed list.

Recognizing certified South Asian yards on the EU list would close the gap between policy intent and market reality, encouraging higher environmental standards across the sector. BIMCO’s Ship Recycling Alliance urges the 27 member states to endorse the HKC and support forthcoming IMO deliberations aimed at updating the convention. With an estimated 16,000 vessels slated for dismantling over the next decade, aligning regulations could unlock significant investment in greener infrastructure while safeguarding labor conditions. A coordinated, global framework promises both compliance certainty for shipowners and a more sustainable end‑of‑life pathway for the industry.

Why are 110 certified Indian ship recycling yards frozen out by Brussels?

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