Ship Recycling Regulations: Unraveling the Tangled Web

Ship Recycling Regulations: Unraveling the Tangled Web

The world is taking a big step towards responsible ship recycling with the upcoming enforcement of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) in June 2025. This is a positive development, but a potential conflict with existing regulations has emerged, causing some uncertainty in the industry.

A Web of Regulations

Two key international agreements govern hazardous waste management, including ship waste:

• Basel Convention: This 1989 agreement regulates the movement of hazardous waste across borders, ensuring environmentally sound disposal. It applies to ship waste but doesn’t focus solely on shipping. Almost all countries (191 as of February 2023) are party to this convention.
• Ban Amendment: This 2019 amendment to the Basel Convention prohibits developed countries from exporting hazardous waste to developing countries. Over 100 countries have adopted this amendment.

The European Union and Ship Recycling

The European Union (EU) has its own regulations that build upon the Basel Convention:

• EU Waste Shipment Regulation: This regulation, largely replaced by the EU Ship Recycling Regulation, outlines procedures for shipping waste within, to, and from the EU.
• EU Ship Recycling Regulation: This 2018 regulation applies stricter environmental and safety standards for recycling EU-flagged ships. It allows recycling only at approved facilities on a European List.

The Hong Kong Convention and Concerns

The Hong Kong Convention focuses on ship recycling and applies to ships flagged in member countries (24 as of February 2024). Key aspects include:

• Inventory of Hazardous Materials (IHM): Ships must carry an IHM detailing hazardous materials on board.
• Authorized Recycling Facilities: Ships can only be recycled at authorized facilities that meet specific requirements.

Here’s where the potential conflict arises:

• Some Hong Kong Convention member countries are not part of the developed world (OECD).
• A ship authorized for recycling under the Hong Kong Convention (with an International Ready for Recycling Certificate – IRRC) might still be considered hazardous waste under the Basel Convention/Ban Amendment.

This situation could lead to a ship being arrested during lawful trade simply because it’s considered to have violated the Basel Convention.

The Lack of Clarity and Proposed Solutions

There’s disagreement on whether exporting a ship to a non-OECD yard approved under the Hong Kong Convention or the EU List breaches the Basel Convention/Ban Amendment. Further confusion arises because:

• The Hong Kong Convention and EU regulations have slightly different requirements for certifying recycling yards.
• The EU Waste Shipment Regulation is undergoing revision to potentially allow exporting of hazardous waste (including ship waste) to non-OECD countries if they meet specific standards.

Industry bodies like BIMCO, along with several countries, have called for clarification before the Hong Kong Convention comes into force. They want assurances that complying with the Hong Kong Convention won’t lead to penalties for violating the Basel Convention.

Looking Ahead

The upcoming meetings of the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) and the Basel Convention parties are crucial. These meetings could potentially:

• Address the inconsistencies between the Hong Kong Convention and the Basel Convention.
• Provide clarity for the shipping industry on how to comply with both sets of regulations.

A globally standardized approach to responsible ship recycling is essential. Resolving these concerns before June 2025 will ensure a smooth transition and a level playing field for the world fleet.

The International Maritime Organization (IMO) is about to put into action the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009, set for June 26, 2025. This convention is a big step towards responsible ship recycling. However, there’s a snag: it might clash with the UN’s Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal 1989, along with its Ban Amendment.

As the IMO’s Marine Environment Protection Committee (MEPC) gears up for its March 18-22, 2022 meeting (MEPC 81), groups like BIMCO are urging the committee to sort out any legal conflicts between these two conventions. They want clarity before the industry dives in.

Let’s break down these conventions and regulations:

The Basel Convention, kicking in back in 1992, controls the movement of hazardous waste across borders. It makes sure such waste is managed and disposed of safely. As of February 2023, 191 countries have signed on. This convention applies not only to general hazardous waste but also to ship waste. It’s the responsibility of the exporting state, any transit states, and the recycling state to comply.

The Ban Amendment, which became effective in December 2019, bars OECD and EU countries, plus Liechtenstein, from exporting hazardous waste to non-OECD and developing nations. By February 2023, 103 countries had given the green light to the Ban Amendment.

The EU Waste Shipment Regulation turns Basel Convention rules into law for the EU. It spells out how to ship waste within, to, and from the EU based on where it’s going, the type of waste, and how it’ll be treated.

Replacing much of the Waste Shipment Regulation is the EU Ship Recycling Regulation, enforced in 2018. This one focuses on ships flying the EU flag, saying they must only be recycled in approved European shipyards. It matches up with the Hong Kong Convention but adds extra health, safety, and environmental standards. The Waste Regulation still applies to non-EU ships heading to EU ports for recycling.

The Hong Kong Convention applies to ships flagged in its 24 contracting states as of February 2024. Each flag state’s authorities are responsible for making sure ships follow the convention’s rules.

Under the Hong Kong Convention, ships need an Inventory of Hazardous Materials (IHM) and can only be recycled at approved facilities. These facilities, in contracting states, must get the nod from national authorities. They need plans for recycling ships in general and for each specific ship.

So, what’s the worry?

Some Hong Kong Convention signatories aren’t in the OECD. This raises questions about whether a ship could be OK under the Hong Kong Convention but still count as hazardous waste under the Basel Convention/Ban Amendment. With an International Ready for Recycling Certificate (IRRC), a ship could be in hot water for three months while operating lawfully because it’s seen as breaking Basel Convention rules.

There’s debate over whether shipping a ship to a non-OECD yard okayed under the Hong Kong Convention or on the EU’s approved list would breach the Basel Convention/Ban Amendment. Some argue that the environmental standards set by the Hong Kong Convention and EU Ship Recycling Regulation are enough to meet Basel Convention standards, but not everyone’s on the same page.

Plus, the rules for certifying recycling yards under the Hong Kong Convention and Recycling Regulation don’t match up perfectly. They’re trying to fix that, but the current confusion doesn’t help.

How are they dealing with it?

The EU plans to tweak the Waste Shipment Regulation to allow shipping hazardous waste, including ship waste, to non-OECD countries if the recycling facility meets EU standards. The facility would then get on the EU’s list.

This move comes as non-OECD yards upgrade to meet EU standards, with some already passing preliminary audits. Before, the Ban Amendment might have stopped them from making the list. But this change only affects ships going from or through the EU.

BIMCO, alongside the International Chamber of Shipping and countries like Bangladesh, India, Norway, and Pakistan, wants the MEPC to ensure that following the Hong Kong Convention doesn’t get you in trouble under the Basel Convention/Ban Amendment.

Their document to the MEPC warns that shipowners could face charges for sending their ships to be recycled responsibly in Bangladesh, India, Pakistan, or Turkey (all non-OECD states) after the Hong Kong Convention starts. They argue that the Hong Kong Convention should be a one-stop-shop for responsible ship recycling, making sure all ships play by the same rules.

Because the IMO is pushing for as many countries as possible to sign onto the Hong Kong Convention, it makes sense to sort out these concerns before it kicks in.

The Basel Convention parties will meet in April/May 2025. It remains to be seen whether MEPC81 will tackle these issues or if they’ll still be on the agenda for the Basel Convention meeting.