EU Ship Recycling Regulation: Higher Standards Achieved but Challenges Remain
Brussels, 20th February — The European Commission has published the results of its evaluation of the EU Ship Recycling Regulation, revealing significant strides in environmental and social standards within the ship recycling industry, while also highlighting persistent challenges that undermine the law’s full effectiveness.
The assessment, released on Wednesday, found that the Regulation has largely achieved its primary objectives since its adoption in 2013. A key achievement has been the creation of the European List of Authorised Ship Recycling Facilities, which has set a benchmark for sustainable practices not only within the European Union but also internationally.
However, the evaluation also pointed to a critical loophole: shipowners circumvent EU regulations by changing their vessels’ flags to non-EU countries shortly before recycling. This practice, driven by financial incentives from selling end-of-life ships to less regulated South Asian yards, has significantly hindered the Regulation’s overall impact.
Raising the Bar for Ship Recycling
The EU Ship Recycling Regulation was established to ensure that large sea-going vessels sailing under an EU Member State flag are dismantled in safe, environmentally friendly conditions. The law requires recycling facilities to meet strict criteria related to worker safety and pollution prevention. The European List of compliant facilities, which currently includes 43 yards, serves as a practical tool to guide shipowners toward responsible choices when decommissioning vessels.
Of the 43 authorised facilities, 31 are in Europe (including Norway and the UK), 11 in Türkiye, and one in the United States. The latest update to the list, adopted on Tuesday, added new facilities in the Netherlands and Türkiye while removing yards in Latvia, Lithuania, and Türkiye.
The European List has become an important benchmark for stakeholders and authorities, promoting higher standards globally. However, the practice of “flag hopping” has allowed many shipowners to bypass the Regulation entirely. By re-registering their ships under non-EU flags shortly before scrapping, owners can exploit weaker regulatory environments in South Asian countries such as India, Bangladesh, and Pakistan, where environmental and worker safety standards are often lacking.
Gaps in Hazardous Materials Management
Another challenge identified in the evaluation is the inadequate management of hazardous materials inventories. The Regulation mandates that vessels maintain an updated inventory of hazardous substances, such as asbestos and heavy metals, throughout their operational life. However, the assessment revealed that these inventories are frequently incomplete or of poor quality, particularly at the recycling stage.
This shortfall poses serious risks to both recycling workers and the environment, as improper handling of hazardous materials can lead to toxic exposure and contamination. The Commission noted that addressing this issue will require stricter enforcement and better compliance monitoring.
Preparing for the Hong Kong Convention
The evaluation comes ahead of the Hong Kong Convention’s entry into force in June 2025. This international treaty, adopted under the International Maritime Organization (IMO), sets global standards for ship recycling but is considered less stringent than the EU’s own regulations in some respects.
The European Commission plans to assess the implementation of the Convention and explore opportunities to push for stronger global standards. “Our goal is to maintain and even enhance the high environmental and social standards established by the EU Ship Recycling Regulation,” a Commission spokesperson said. “We are committed to ensuring that the Hong Kong Convention becomes a stepping stone, not a step back, for the global ship recycling industry.”
To reinforce compliance, the Commission will continue working with Member States, non-EU countries, and industry stakeholders. Key priorities include preventing EU-flagged ships from evading their recycling obligations, clarifying standards, and ensuring that penalties for infringements are effectively enforced.
Economic Pressures and Ethical Concerns
The economic incentives driving “flag hopping” are substantial. Recycling ships in South Asia can generate significantly higher revenues for shipowners due to lower labor costs and less stringent environmental regulations. However, this practice has been widely criticized by environmental and human rights organizations.
“Shipbreaking yards in South Asia often operate under conditions that would be unacceptable in the EU,” said Maria Jensen, a representative of the NGO Shipbreaking Platform. “Workers are exposed to dangerous conditions with inadequate safety equipment, and the environmental damage to coastal ecosystems is severe.”
The NGO has called for tighter controls on ship registrations and stronger penalties for shipowners who attempt to circumvent EU rules.
Looking Ahead: Strengthening the Regulation
To close existing loopholes, the Commission is exploring measures such as enhanced monitoring of ship movements and more stringent enforcement of the requirement for EU-flagged vessels to use only EU-listed recycling facilities. The upcoming integration of the Hong Kong Convention’s standards could also offer an opportunity to align international practices with the EU’s higher benchmarks.
European shipowners control approximately 30% of the world’s fleet by tonnage. With such a significant share of the maritime industry, the EU’s regulatory stance has the potential to influence global standards. The Commission’s focus on preventing regulatory evasion could help set a global precedent for safer and greener ship recycling practices.
As the next steps unfold, the Commission has promised to maintain transparency through continued public consultations and detailed reporting to the European Parliament and the Council. Stakeholders are hopeful that these efforts will lead to stronger enforcement mechanisms and a more effective alignment of international ship recycling standards with the EU’s ambitious environmental and social objectives.
