Press Release – European Commission report recommends the introduction of a Ship Recycling License
Ships regardless of their flag should not be allowed to call at any EU port without a ship recycling license to incentivise sustainable ship recycling, a European Commission report recommends.
The report written by Ecorys, classification society DNV-GL and the Erasmus University School of Law and published yesterday, looks into the possibility of introducing a financial incentive to enhance safe and environmentally sound ship recycling [1]. Ship recycling license fees would be earmarked to cover the cost-gap between substandard and sustainable end-of-life ship management. The capital amount accumulated during the operational life of the vessel would be set aside for the ship and only paid back to the last owner of the vessel as a premium if the ship is recycled in a sustainable facility approved by the EU.
The 2013 EU Ship Recycling Regulation requires all vessels sailing under an EU flag to use an approved ship recycling facility [2]. A major shortcoming of the Regulation, however, is that shipowners can circumvent the law by simply flagging out to a non-EU flag. At end-of-life, cash-buyers act as intermediaries and sell the vessels to substandard yards in South Asia often using flags of convenience which are grey- or black-listed by European governments under the Paris Memorandum of Understanding. Last year, Bangladesh, where human rights abuses and pollution caused by shipbreaking activities are known to be the worst, was the preferred destination for end-of-life ships. EU owners account for around one third of the end-of-life tonnage beached in substandard yards in Bangladesh, India and Pakistan. Thus, the EU is the single largest market sending end-of-life ships for dirty and dangerous shipbreaking and has a particular responsibility to regulate ship recycling [3].
European ports are not opposing the ‘ship recycling license’ [4] and SeaEurope, Europe's ship yard and maritime equipment association, has expressed enthusiasm towards ensuring better implementation of the Ship Recycling Regulation - last month they called for support to enhance ship recycling capacity and R&D towards more cost effective solutions in Europe [5].
NOTES
[1] Article 29 of the EU Ship Recycling Regulation asks the European Commission to submit a report on the feasibility of a financial instrument that would facilitate safe and sound ship recycling, and to accompany this report by a legislative proposal if deemed appropriate. For Regulation text see http://ec.europa.eu/environment/waste/ships/ For the report on a possible financial incentive see: http://ec.europa.eu/environment/waste/ships/pdf/financial_instrument_ship_recycling.pdf.
[2] A list of approved ship recycling facilities globally will be published by the end of 2016.
[3] Approximately 40% of the world fleet is controlled by owners based in the EU+EFTA, only 17% of the world fleet, however, sails under an EU+EFTA flag. The vast majority of EU-owned ships are sailing under the flags of states such as Panama, Liberia and the Marshall Islands during operational life. The percentage of EU flags drops to less than 8% at end-of-life.
[4] An earlier proposal for a 'ship recycling fund' was narrowly rejected by the European Parliament in 2013 with industry stakeholders, including the shipping industry and ports, strongly opposing the fund at the time. Whilst ship owners remain unwilling to bear the cost of sustainable recycling, both the public and private European port associations – ESPO and Feport – have now expressed that they are satisfied with the new license proposal. The license scheme will not be administered by the ports. It is also time-based, with the option of a monthly or yearly license, rather than based on the collection of a fee at each individual port call.
[5] See press release from 11 May 2016: http://www.seaeurope.eu/template.asp?f=pressreleases.asp.
For more information see our “What a difference a flag makes” report on why ship owners need to be held accountable for sustainable ship recycling beyond flag state jurisdiction.
Related news
Press Release – Fire on board Greek tanker kills two shipbreaking workers in Bangladesh
Md Jamil and Bipul lost their lives while scrapping Polembros’ vessel Greek Warrior.
... Read MorePlatform News – SAVE THE DATE: Ship Recycling Lab on 20-21 September in Rotterdam
The NGO Shipbreaking Platform invites you to attend the conference Ship Recycling Lab on 20-21 September in Rotterdam (Netherlands).
... Read MorePress Release – Brazil set to violate three international environmental treaties in sinking PCB-laden aircraft carrier in the Atlantic
Environmentalists denounce Brazilian Navy for ‘criminal negligence’.
... Read MorePlatform News – Worker killed when breaking the Hanjin Rome
Two workers lost their lives at the Chittagong shipbreaking yards in the last two weeks, bringing the total death toll this year to six workers. … Read More
Press Release – Platform publishes list of ships dismantled worldwide in 2019
674 large ocean-going commercial vessels were sold to the scrap yards in 2019. Of these vessels, 469 were broken down on tidal mudflats in South Asia.
... Read MorePlatform News – EU ship recyclers join voices to promote clean and safe practices
Five European ship recycling yards announced yesterday that they have joined forces to effectively raise awareness of existing best practice and the fact that there is capacity… Read More
Press Release – Pakistani workers poisoned during scrapping of infamous mercury-laden tanker
The tanker J. NAT has been beached on the shipbreaking shores of Gadani, Pakistan despite clear warnings by Interpol and international civil society groups that the vessel contains high levels of toxics.
... Read MorePress Release – Danish opposition parties call on Government to stop beaching of Maersk vessels
The Danish Environment Minister, Esben Lunde Larsen, had to answer to the Parliament yesterday following questions put to the Government by all the opposition parties. The… Read More