BIMCO and Lloyd’s List Intelligence estimate that more than 15,000 ships will need to be recycled over the next ten years. This represents an increase of 360 per cent compared with today. Capacity at recycling facilities with a sufficient level of environmental and safety standards has not kept pace.

A new analysis from the International Chamber of Shipping and European Shipowners | ECSA concludes that there is a need to strengthen the global rules. The analysis also points out that the majority of the world’s ship recycling capacity remains concentrated in Asia, and that the main difference between the global rules — the Hong Kong Convention — and the EU regulation in this area is that the EU imposes stricter requirements for approval, supervision and transparency.

“The entry into force of the Hong Kong Convention in 2025 is an important global step forward for safe and en­viron­men­tal­ly sound ship recycling. However, the new analysis also shows that there is still a need to strengthen the almost 20-year-old international requirements and expand global capacity as more ships are set to be recycled,” says Nina Porst, Executive Director, Sustainable Ships and Competences at Danish Shipping.

The EU already has the possibility today to approve recycling facilities outside the EU and OECD, allowing certain EU-flagged ships to be recycled there at the same high level as the EU standard. So far, however, not a single facility in South Asia has been approved, despite the fact that 70–80 per cent of the world’s ship recycling takes place there.

“We encourage the EU to work faster to approve qualified recycling facilities outside the EU and OECD, so that incentives are created for investment and higher environmental and safety standards globally. We know that a major task lies ahead, with thousands of ships to be recycled in the coming years. Let us update the global regulatory framework so that this can take place responsibly across the world. I believe the EU should use its own rules more actively to raise standards globally. That is timely diligence,” says Nina Porst.