Navigating the Seas of Regulation: The EU Ship Recycling Dilemma
In the heart of Brussels, on September 19-20, 2023, the European Shipping Summit brought together industry leaders under the joint organization of the Royal Belgian Shipowners’ Association (RBSA) and BIMCO. A pivotal discussion emerged, centering on the impending entry into force of the Hong Kong Convention (HKC) and its potential impact on the existing EU Ship Recycling Regulation (EU-SRR).
The crux of the matter was articulated by experts who raised a fundamental question: With the HKC promising positive transformations in standards and environmental conditions, does the EU still need to uphold its Ship Recycling Regulation?
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Christelle Rousseau, representing the Directorate-General for Environment in the European Commission, dissected the argument advocating alignment between EU-SRR and HKC. She highlighted two critical issues that challenge the seamless integration of these regulatory frameworks.
Firstly, Rousseau pointed out the loophole exploited by some shipowners who change their flag before recycling, sidestepping EU-SRR. The concern was that these shipowners might adopt the same strategy under the HKC to avoid compliance with the higher standards it sets.
Secondly, the absence of an oversight mechanism in the HKC was flagged. While achieving compliance is the initial step, Rousseau stressed that continuous and rigorous enforcement is crucial for sustaining standards. The European Commission’s position, as explained by Rousseau, was not to view the EU-SRR and HKC as competitors but as complementary instruments. Yet, the imminent entry into force of the HKC necessitates a review of the EU-SRR and an understanding of their interaction with the Basel Convention.
Rousseau underscored the potential legal dichotomy arising from these dual instruments, cautioning that this might impede industry planning and investment. BIMCO president Nikolaus Hans Schües echoed similar sentiments, emphasizing that the EU needs to align with the HKC to keep pace with the global ship recycling landscape.
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The dilemma facing EU policymakers was succinctly framed: Will they embrace the challenge, considering that all EU member states are also International Maritime Organization (IMO) members, or will they opt for a solitary path? While achieving compliance is the initial step, Rousseau stressed that continuous and rigorous enforcement is crucial for sustaining standards.
The resolution to this quandary lies with the next EU legislature. A comprehensive public consultation has been conducted to assess the effectiveness of the EU-SRR and EU List, gathering diverse perspectives from stakeholders. The European Commission is diligently preparing a staff working document slated for the second quarter of 2024. Depending on the findings, an impact assessment will follow, addressing identified issues. Only after this rigorous process will a decision be made on the potential revision of the EU-SRR.
As the maritime community sails towards this critical juncture, the challenge for the EU is clear – to navigate the intricate waters of regulation, striking a delicate balance between aligning with global standards and safeguarding its unique interests. The decisions made in the coming years will not only shape the future of ship recycling in the EU but will reverberate across the international maritime landscape.
Navigating the Seas of Regulation: The EU Ship Recycling Dilemma
