Green Licence to be Mandatory for Bangladesh Ship Recycling Industry: Minister
CHATTOGRAM — In a major step toward structural and environmental reform, the government of Bangladesh has announced that “green licences” will become strictly mandatory for all ship recycling operations in the country. Moving forward, no entity will be allowed to operate within the shipbreaking sector without meeting these upgraded environmental and safety standards.
The directive was issued by Commerce and Industry Minister Khandaker Abdul Muktadir on Monday, July 6, following a comprehensive inspection of several ship recycling yards in the Sitakunda coastal belt. Speaking to journalists after the tour, the Minister emphasized the government’s commitment to modernizing the sector while promising robust state support to help local businesses transition to sustainable practices.
“Bangladesh was once a global pioneer in the ship recycling industry,” Minister Muktadir stated. “The government is now actively working to restore our country’s leading position on the international stage, but this must be built on a foundation of sustainability and safety.”
A Shift Toward International Standards
The shipbreaking sector in Sitakunda, Chattogram, has historically been a critical pillar of Bangladesh’s economy, supplying the bulk of the domestic steel industry’s raw materials. However, for decades, the industry faced heavy global criticism.
“We acknowledge that there have been numerous allegations of environmental pollution, labor exploitation, and unsafe working conditions in the past,” Muktadir noted. He highlighted that the narrative is shifting, pointing out that ship recycling operations are now being carried out scientifically at green yards in strict compliance with international frameworks, such as the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
According to official data shared by the Minister, 31 ship recycling yards in Bangladesh have already successfully modernized their infrastructure and secured their green licences. For the remaining yards still trailing behind, the clock is ticking.
“Those yet to secure green licences will have to elevate their operations to meet the required benchmarks. The government will not leave them behind; we will provide the necessary technical and policy support to help these businesses comply,” Muktadir assured.
Tackling Security and Energy Challenges
Beyond environmental compliance, the Minister addressed structural challenges threatening the industry’s stability, including law and order. He issued a stern warning against external disruptions, extortion, or security threats targeting yard owners.
“The government will take strict action if ship recycling businesses face any law and order problems,” he said, adding that relevant ministries, law enforcement agencies, and local administrations have been briefed to intervene immediately if security issues arise.
When questioned by reporters regarding the broader economic headwinds affecting heavy industries in Bangladesh, Muktadir acknowledged the ongoing energy crisis, noting that the shortage of natural gas remains a persistent challenge that the government is actively working to mitigate.
The ministerial inspection and subsequent declaration were met with cautious optimism by industry stakeholders. Mohammad Mohsin Chowdhury, President of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), alongside senior leaders of the Ship Recycling Industry Owners Association, accompanied the Minister during the visit.
Industry insiders believe that making green certification mandatory will help Bangladesh secure higher-value vessels from international shipowners who now mandate green-certified yards for decommissioning their fleets. By formalizing these regulations, Bangladesh aims to shed its historical image of hazardous beaching and solidify its status as a world-class, eco-friendly industrial hub.
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