Shipping Industry Welcomes Proposed Inclusion of Indian Yards on EU Recycling List

BIMCO, European Shipowners | ECSA, the International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO, and the World Shipping Council (WSC) have collectively expressed support for the European Commission’s proposal to include two Indian ship recycling facilities on the updated European List of Ship Recycling Facilities. This move is seen as a significant step by the shipping industry, which has consistently advocated for the inclusion of compliant non-OECD yards since the EU Ship Recycling Regulation (EU SRR) came into force, Hellenic Shipping News Worldwide reported on 3 September 2026.

The industry bodies highlight that the proposal carries both practical significance for shipowners and a strong political message: non-OECD yards capable of meeting the EU SRR’s safety and environmental requirements should be recognised. They note that the inclusion of these two facilities represents an important step towards addressing a structural capacity shortage on the European List. Estimates from the industry suggest a substantial increase in the number of vessels reaching the end of their operational life over the next decade, making sufficient compliant recycling capacity essential.

Compliance and Capacity

A European List that accurately reflects global recycling capacity is considered a prerequisite for the legislation to function as intended, serving as an incentive for safe and environmentally sound ship recycling worldwide. The proposed update reflects years of substantial investment and effort following the adoption of the Hong Kong Convention (HKC) in 2009. The industry organisations assert that inclusion on the European List should be determined solely by whether a facility meets the EU SRR’s safety and environmental requirements, based on objective assessment and inspection.

The yards in question have made considerable capital investments to upgrade their infrastructure, safety systems, and environmental management to meet both HKC and EU SRR standards. These efforts align with the purpose of the EU SRR: to reduce disparities in workplace health and safety and environmental standards among operators in the EU, OECD, and relevant third countries, thereby supporting the globally applicable convention. Other yards in the region are reported to have followed a similar path and are anticipated to meet EU SRR requirements soon.

Global Recycling Landscape

More than 95% of global ship recycling occurs in four countries: Bangladesh, India, Pakistan, and Turkey, all of which are parties to the IMO HKC. Given this concentration, approving facilities in these nations that have made significant improvements in securing safe and environmentally sound ship recycling is deemed essential once they meet the EU SRR requirements.

This visible progress has been supported by a wider ecosystem of stakeholders. This includes downstream waste management facilities ensuring environmentally sound treatment of hazardous materials, medical and hospital services supporting worker health and safety, and Indian authorities who have established a comprehensive statutory framework for ship recycling and supported the certification of compliant facilities. The shipping organisations encourage policymakers to swiftly approve and adopt the updated EU list.