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.