Press Release – Belgian Public Prosecutor appeals acquittal of CMB’s subsidiary Bocimar NV

On 25 June, the Court of Antwerp dismissed the charges pressed against ship owner Bocimar NV for the scrapping of a vessel in a Bangladeshi yard where a shipbreaking worker died.

 

In 2016, Bocimar NV, a subsidiary of Companie Maritime Belge (CMB), sold the Belgian-flagged MINERAL WATER (IMO 9175066) to a scrap-dealer, also known as ‘cash buyer’. Bocimar’s lawyers stated that the company had merely sought the highest price for their end-of-life vessel, which at the time could only be obtained at the infamous beaching yards of Chattogram, Bangladesh. [1] They argued that whilst ignoring the human rights breaches and the environmental damage caused by shipbreaking in Bangladesh for the sake of profit “may not have been sympathetic”, “it was not illegal”. 

 

The European Union (EU) Ship Recycling Regulation which regulates the recycling of EU-flagged vessels was adopted in 2013 but only became applicable in December 2018. It did thus not apply to the 2016 scrap sale of Bocimar’s Belgian-flagged ship. The Prosecutor instead argued that the decision to scrap the ship was taken in Belgium at Bocimar’s Antwerp offices when the vessel was still sailing under the Belgian ship registry, rendering its disposal accountable to the rules of the EU Waste Shipment Regulation, which prohibits the export of toxic waste from the EU to non-OECD countries.

 

The principled application of Belgian and EU law was not as such disputed in Court. Neither did Bocimar NV dispute that the MINERAL WATER became waste upon the company’s decision to scrap the ship. The vessel was, however, sailing in Chinese waters when it was sold for scrap, and Bocimar’s lawyers argued that this meant EU waste laws could not be applied as the ship never physically departed as waste from the EU – arguments that the Antwerp Court accepted and which the Prosecutor is now appealing.

"Everything about the vessel points towards Belgium – a Belgian company choses to scrap its Belgian-flagged ship at a place where it is known that shipbreaking destroys workers’ health, local livelihoods and the environment, and is not hold liable? Companies have a duty of care meaning that they are accountable for business decisions that cause harm, even in their supply chain. "
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Bocimar NV, as well as Euronav NV and Exmar NV which are also closely linked to the Belgian shipping family Saverys, continued to sell their scrap ships to the beaching yards even after the outrage of the MINERAL WATER’s scrapping in Bangladesh was revealed in the Standaard [2].

 

CMB NV and companies linked to the Saverys family own and operate a large fleet [3], including at least 19 vessels built before 2006 that are expected to reach the end of their operational life in the coming years. 

"CMB NV and Euronav NV have ambitious plans on getting zero emission vessels powered by zero emission fuels into operation by 2030. This will inevitably lead to the scrapping of older ships not compatible with their ambitious GHG emission reduction targets. If CMB is not compelled to improve its recycling practices out of mere 'sympathy' with exploited workers and the coastal environments in South Asia, they will surely want to consider this if they are intent on obtaining sustainable financing for the greening of their fleet."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Indeed, the recently adopted EU Taxonomy on Sustainable Financing takes a life-cycle approach to shipping. According to the taxonomy, financing aimed at for example climate mitigation must not undermine any of the EU’s other environmental objectives. For shipping companies wanting to secure funding to green their operations it is thus key that they have a policy for using only EU-approved ship recycling facilities at end-of-life.

 

NOTES

 

[1] The sale of the MINERAL WATER saw Bocimar NV earning 5.400.000 USD. Scrap prices obtained in Bangladesh were around 300 USD/LDT in 2016, almost the double of what could be obtained for recycling at yards located in either China or Turkey and that follow higher environmental and OHS standards. Recycling in Ghent, Belgium, where vessels are dismantled alongside and using a slipway as well as industrial heavy lifting cranes would have brought Bocimar NV a profit of approximately 100 USD/LDT.

 

[2] In 2016 Bocimar NV sold two additional ships for scrapping in Bangladesh: BEAR HUNTER (IMO 9292254) at a price of 6.500.000 USD and BULL HUNTER (IMO 9292242) at a price of 6.450.000 USD. Euronav NV sold three Greek flagged vessels to beaching yards: the CAP GEORGES (IMO 9128283) for 10.600.000 USD in 2017 and the CAP JEAN (IMO 9158147) for 10.600.000 USD in 2018, both to Bangladesh, as well as the CAP ROMUALD (IMO 9160229) in 2018 to India for 10.900.000 USD. Exmar NV sold the Belgium flagged COURCHEVILLE (IMO 8804725) to India for an undisclosed price in 2018.

 

[3] CMB NV, including its subsidiaries Bocimar NV and Delphis NV, and other shipping companies closely linked to the Saverys family, including Exmar NV and Euronav NV, own more than 100 vessels - mainly tankers, bulk- and gas carriers.

 

[4] Euronav NV recently announced having raised an 80 million sustainability loan with built in climate related targets. Whilst they primarily own a relatively young fleet, at least 9 vessels are built before 2006. In 2017 and 2018, Euronav NV sold three vessels to beaching yards in South Asia, see note [2] above.

 

Press Release – Sale of asbestos-laden aircraft carrier São Paulo raises concerns

The NGO Shipbreaking Platform, Basel Action Network (BAN), BAN Asbestos France, International Ban Asbestos Secretariat (IBAS), İstanbul Isig Meclisi and Brazilian ABREA have alerted the Turkish Ministry of Environment and Urbanization about the legal, environmental and health risks linked to breaking the aircraft carrier São Paulo (ex Foch). 

 

Already last year, the NGOs called upon both Brazilian and French authorities to ensure the safe and environmentally sound recycling of the Clemenceau’s sister ship, and recommended the use of one of the yards included in the EU list of approved ship recycling facilities, which is limited to vetted non-beaching operations in OECD countries. After a lengthy and tortuous auction process, the São Paulo was finally sold to Turkish EU-listed yard Sök Denizcilik and Ticaret Limited.

 

Now, the NGOs are calling upon Turkish authorities to ensure a proper characterization of the hazardous wastes on board the São Paulo so that the export and subsequent management of the toxics can be done in an environmentally sound manner. Like its infamous sister ship Clemenceau, whose misguided export to India was recalled to Europe at great expense due to violations of the Basel Convention, the São Paulo contains large amounts of hazardous substances within its structure, and is thus considered a hazardous waste under the Basel Convention. [1]  

 

In view of the particularly large amounts of asbestos and other hazardous materials likely to be embedded within the vessel’s structure, local civil society groups, political leaders, technical experts and union organisers are now stepping out in strong opposition to the import of the vessel to Turkey. They have raised legitimate concerns about the lack of transparency on how asbestos and other wastes are managed [2], and that the price quoted for the purchase of the aircraft carrier is not financially viable if all the proper precautions are to be observed during the recycling of the vessel and the disposal of the hazardous wastes. No Inventory of Hazardous Materials (IHM) was provided during the sale and bidding process for the São Paulo, and it remains uncertain as to whether a proper independent audit or IHM has been performed since.  

 

The NGOs are calling for an independent assessment of whether the plans on how to remove and dispose of the hazardous wastes on board the São Paulo meet the requirements for environmentally sound management and ensure that workers and local communities are not exposed to any risks. Given the very hazardous nature of the military vessel's materials, the shipment from Brazil and subsequent management plans should be fully transparent to any impacted communities and be supported by them.    

 

Click here to access the open letter addressed to the Turkish Ministry of Environment and Urbanization.

São Paulo aircraft carrier in Rio de Janeiro, 2019

 

NOTES

 

[1] Based on the audits performed on the Clemenceau, it is estimated that São Paulo contains around 900 tons of asbestos and asbestos-containing materials, hundreds of tons of Polychlorinated Biphenyl (PCB)-containing materials and large quantities of toxic heavy metals on-board.

 

[2] Answering a Parliamentary Motion on 20 May 2021, the Turkish Ministry of Environment and Urbanization stated that 714 ships have been dismantled in Aliağa in the last five years, resulting in the disposal of 74.325 tons of hazardous waste, including approximately 250 tons of asbestos. The figure for asbestos seems grossly underestimated, taking into account that the yards in Aliağa have dismantled numerous military vessels; oil and gas units; and also older vintage RoRo/passenger ships operating in the Mediterranean, all of which are expected to contain large amounts of asbestos-contaminated materials.

 

 

 

Press Release – Pakistani workers poisoned during scrapping of infamous mercury-laden tanker

The Floating Storage and Offloading (FSO) 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. 

 

For more than a year the vessel has been under the spotlight of enforcement agencies and public watchdogs for its illegal export from Indonesia and the multiple attempts to illegally scrap it in South Asia. In Bangladesh and India, local authorities banned its entry due to the dangerous presence of hazardous substances in its steel structures, ballast waters, oil slops and oil sludges following alerts by NGOs. In an attempt to conceal the ship’s identity, its name has been changed several times, from J. NAT to RADIANT to CHERISH, and its real-time location concealed. After several months off the radar, the vessel recently reappeared in Mumbai before initiating its final voyage towards Pakistan.

 

Despite the risks linked to the presence of hazardous substances onboard the vessel, workers were instructed to initiate its scrapping at Plot 60 on the Gadani shipbreaking beach. Local media reports that mercury-contaminated oil sludge was removed from the ship and filled in drums for sale, with workers complaining of severe burning, rushes on their hands and face, and breathing difficulties. It is further likely that the vessel's steel is contaminated by mercury, which will release extremely toxic vapours when heated by for example torch-blowers [1]. Exposure to mercury, even at low levels, has been linked to central nervous system damage, kidney and liver impairment, reproductive and developmental disorders, defects in foetuses and learning deficits. 

 

Dismantling operations of the J. NAT have now been halted by local authorities, and an investigation has been launched. It is not the first time the yard owner, Dewan Rizwan, a former Chairman of the Gadani Shipbreaking Owners Association, has exposed workers to serious risk. At least five workers died in a fire onboard a ship at his yard in January 2017.

 

The NGO Shipbreaking Platform, Basel Action Network (BAN), European Environmental Bureau (EEB), IPEN (International Pollutants Elimination Network), Nexus3 Foundation, and Zero Mercury Working Group are now urging Pakistani authorities to keep the yard sealed, and call on Indonesian authorities to take back the waste in line with international law. [2]  

"This case is a shocking example of how companies make profits on the backs of vulnerable workers and coastal environments. It is an environmental crime to dodge international laws that ban the trade of hazardous wastes, and the shipping industry has a duty of care to ensure human rights due diligence when selling their obsolete assets. "
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The harsh working conditions at Gadani became widely known after the explosion on 1 November 2016, the worst tragedy in the history of shipbreaking. At least 29 workers were then killed and more than 60 workers were reported injured, many of them suffering severe burn wounds. Fires, explosions, falls from great height and falling steel blocks kill numerous workers each year at the South Asian shipbreaking yards. 

 

IndustriAll-affiliated Pakistan National Trade Union Federation (NTUF) has voiced strong concerns related to systemic breaches of basic labour rights and occupational health and safety. Most of the shipbreaking workers are migrant workers from the poorest parts of Pakistan, including Khyber Pakhtunkhwa. They leave their families behind as there is no appropriate housing or schooling available in Gadani. Workers lack contractual arrangements with the yard management and have to work very long hours without extra pay, no paid holidays or social benefits, such as social security and pension.

 

As in Chattogram and Alang-Sosiya, the shipbreaking yards operate on a tidal beach, causing pollution to both soil and water. The area is void of hazardous waste disposal facilities, so toxics are simply dumped in the sea or outside the shipbreaking plots. A recent study shows elevated concentrations of mercury and methylmercury in the Gadani shipbreaking area. Local activists have filed a complaint under the Balochistan Environmental Protection Act demanding that shipbreaking activities must operate in line with the Basel Convention. So far, the Government has not initiated the necessary changes to ensure a move of the industry to proper facilities and investments in capacity for downstream waste management. 

 

Following the explosion of 1 November 2016, there has been increased awareness, nationally and internationally, of the dangers faced by the workers in the shipbreaking yards in Pakistan. This led to a moratorium on the import and cutting of tankers in Gadani. The ban has since been lifted, but without concrete measures in place to prevent the recurrence of these tragedies. Berge Bulk, Eurotankers, Petrobras, Polaris Shipping and Sinokor are amongst the shipping companies that have selected dirty and dangerous scrapping in Gadani in the last twelve months.

 

The Platform documents the breaking of floating oil and gas units, including drill ships, floating platforms, jack-up rigs and FPSOs/FSOs. An increasing number are beached in South Asia, including units owned by Diamond Offshore, Maersk, Odebrecht, SAIPEM, SBM Offshore and Transocean. As the J. NAT, SBM’s mercury-laden tanker YETAGUN was illegally exported from Indonesia. Its scrapping on the Indian beach of Alang was investigated by Dutch media Zembla and revealed that workers were unknowingly exposed to mercury contamination. 

 

 

 

NOTES

 

[1] Mercury will remain as a thin invisible coating of metal structures used in the oil and gas processing sector. High concentrations of mercury were documented to have accumulated on and in the steel of the tanks of another unit that operated in the same geographical area, the FSO YETAGUN. Mercury is typically absorbed into the surface of the carbon steel tank walls, piping and pumps. When heated up by simple methods such as sand blasting, water blasting, grinding and gas axing (oxy-acetylene cutting torch) extremely toxic mercury vapor is released in high concentrations which will bypass most commercial personal protection equipment (PPE).

 

[2] Pakistan and Indonesia are both signatories to the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Under this Convention, the trade in mercury and several other hazardous wastes that are contained within the structure of the FSO J. NAT is strictly controlled. The import of the vessel requires that there is prior informed consent (PIC) between Indonesian and Pakistani authorities and that the declarations of hazardous materials left on board must reflect actual conditions. Moreover, the Convention requires that no export be made if there is reason to believe that the recycling or waste management facilities employed for the materials will not constitute environmentally sound management under the Convention. The shipbreaking yards that operate on the tidal beach of Gadani are well-known for their dangerous and polluting practices. 

 

Indonesia and Pakistan are also parties to the Minamata Convention. The oil and gas sector is an important source of mercury emissions and its floating storage, production and offloading units will be contaminated. Measures should be taken by the oil and gas sector to ensure the safe removal, storage and disposal of this highly toxic substance.

Press Release – Platform publishes list of ships dismantled worldwide in 2020

The shipping industry continues to exploit workers and the environment for profit

 

According to new data released today by the NGO Shipbreaking Platform, 630 ocean-going commercial ships and offshore units were sold to the scrap yards in 2020. Of these vessels, 446 large tankers, bulkers, floating platforms, cargo- and passenger ships were broken down on three beaches in South Asia, amounting to near 90% of the gross tonnage dismantled globally.

 

Ships are considered hazardous waste under international environmental law as they contain many toxic materials and substances within their structures, and onboard as residues. These toxics include, amongst others, cadmium, lead batteries, asbestos, mercury, ozone depleting substances, PAHs, and residue oils, which all need to be managed in a safe and environmentally sound manner. Their export from developed to developing countries is banned by UNEP’s Basel Convention.

 

On the beaches of Alang in India, Chattogram in Bangladesh, and Gadani in Pakistan, where near 90% of the global world tonnage was scrapped last year, the negative consequences of shipbreaking are real and felt by many. Workers – often exploited migrants, some of them children – are exposed to immense risks. They are killed or seriously injured by fires and falling steel plates, and sickened by exposure to toxic fumes and substances. Coastal biomes, and the local communities depending on them, are devastated by toxic spills and air pollution due to the lack of infrastructure to contain, properly manage and dispose of the many hazardous materials embedded in the ships. 

 

"It is a scandal that laws and standards aimed at protecting people and the environment are ignored when scrapping the near totality of the global fleet. Governments, the clients, financiers and insurers of shipping, as well as the employees of shipping, need to take a much stronger stance against this exploitation of vulnerable communities and fragile ecosystems."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 10 workers lost their lives when breaking apart vessels in Bangladesh. At least another 14 were severely injured. Despite repeated attempts to obtain official statistics, no information on accidents at the Indian and Pakistani yards has been made available. The sector suffers from a serious lack of transparency, and it is expected that many accidents go unreported. Many more workers suffer from cancers and other occupational diseases. The detention of BBC reporters and confiscation of footage from France 2 journalists by local officers from the Gujarat Maritime Board (GMB), which controls the port in Alang, reveals how the industry seeks to thwart public scrutiny of the deplorable conditions at the yards.

 


DUMPERS 2020 – Worst practices

 

Greece tops the list of country dumper in 2020. Greek owners sold 48 ships for scrapping in South Asia, most of which were beached in Bangladesh and Pakistan. 

 

Whilst some EU Member States are increasingly cracking down on environmental crime, almost a quarter of the tonnage broken in South Asia was owned by European shipping companies. Greece in particular has systematically closed its eyes to the deplorable end-of-life track record of its shipping industry,” says Jenssen.

 

The ‘worst corporate dumper’ prize goes to South Korean company Polaris Shipping. Under pressure following serious incidents on the Stellar Daisy, which sank in the Atlantic with the loss of 22 lives in 2017, and on the Stellar Banner, which was scuttled off the coast of Brazil in June, Polaris Shipping scrapped 11 of its carriers in 2020.  All units were beached in Bangladesh and Pakistan. Four major accidents, causing the death of one worker, occurred during the dismantling of Polaris’ vessels in Chattogram. On 22 June, during an illegal night shift at Jumuna Ship Breakers yard, Abdul Halim was hit by an iron piece in the stomach on the ship Stellar Knight. On 1 July, Rohul fell and broke five ribs while dismantling the Stellar Iris at KSB Steels yard. On the same day, Mozaffor fell from the Stellar Journey at RA Shipbreaking yard. Finally, on 25 December, Md Ibrahim was killed when hit by a large iron piece while breaking the Stellar Hermes at Kabir Steel’s Khawja yard. According to shipping media Splash, middleman scrap-dealer GMS is linked to several of Polaris’ recent demolition sales.

 

Another South Korean company, Sinokor, is runner-up for worst corporate practice. Sinokor sold four vessels for scrapping in Bangladesh last year. On 24 March, two brothers, Shumon Das and Nironjon Das, died due to toxic gas inhalation while working in the engine room of the tanker West Energy at Kabir Steel’s Khawja shipbreaking yard. Sumon and Nironjon left five children behind. In the same accident, two other workers, Kawser and Habib, were also exposed to the toxic gas and fell sick.

 

Brazilian state-owned company Petrobras comes third for worst corporate practice. Three years have passed since civil society organisations and trade unions urged the Brazilian government to stop the dumping of toxic ships on South Asian beaches. Yet, oil giant Petrobras dumped nine of its old tankers in South Asia last year alone. The units were auctioned off to unscrupulous scrap-dealers, also known as cash buyers. 

 

“To avoid such deplorable practices in the future and ensure the enforcement of international legislation on hazardous waste exports, Brazilian authorities need to introduce stricter requirements for the public auctions of Petrobras’ end-of-life vessels,” says Nicola Mulinaris, Communication and Policy Officer at the NGO Shipbreaking Platform.

 

Berge Bulk, Costamare, Eurobulk, Evergreen, K-Line, Maersk and Swire & Sons are other well-known shipping companies that dumped their toxic ships on South Asian beaches in 2020.


In October, a worker lost his life during the scrapping of two Transocean’s rigs at Isiksan, a Turkish ship recycling yard included in the EU list of approved ship recycling facilities. The accident is a strong reminder of the challenges related to both containment and safety when dismantling offshore units. More than half of the oil and gas units scrapped last year ended up on the beaches of South Asia, including units owned by Noble Corporation, Tidewater and Valaris, as well as top dumper Petrobras. The mercury-laden FSO tanker JNAT was, on the other hand, banned from entering Bangladesh and India after NGOs called upon authorities to halt the import. 

 

Environmental and labour laws that regulate ship recycling exist, but they are ignored and easily circumvented by ship owners, often with the aid of cash buyers. These pay the highest price for end-of-life vessels and typically re-name, re-register and re-flag the vessels on their last voyage to the beaching yards. Almost half of the ships sold to South Asia in 2020 changed flag to one of the black-listed flags Comoros, Palau and St Kitts & Nevis just weeks before hitting the beach. At least 14 of these flag changes enabled ship owners to circumvent the EU Ship Recycling Regulation. [1]

"Whist European shipping companies own 40% of the world fleet, only 5% of end-of-life ships were registered under an EU/EFTA flag in 2020. Flags known for their poor implementation of maritime law have always been particularly popular at end-of-life. Ship owners hiding behind anonymous post box companies set up by cash buyers and backed by blacklisted flag registries is a reality that begs for the introduction and enforcement of measures that effectively hold the real beneficial owners of the vessels responsible."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In a landmark ruling last year, a Norwegian court sentenced ship owner Georg Eide to six months unconditional imprisonment for having assisted cash buyer Wirana in an attempt to export the Tide Carrier to Pakistan for scrapping. Several other cases of illicit traffic are under investigation: unravelling the murky practices of shipbreaking, they highlight the importance of conducting due diligence when choosing business partners.

 

Due to the pandemic, the cruise shipping sector has been forced to downsize, with many ship owners, such as Carnival Corporation and Pullmantur, taking steps to reduce operating expenses, including the retirement of relatively young vessels. Carnival Corporation receives the 2020 award for best ship recycling practice. Leading by example, the American cruise shipping giant sets a standard the remaining of the cruise and shipping sector can follow.

"Carnival Corporation is honoured to receive this award. Our highest responsibility and top priorities are to be in compliance everywhere we operate in the world, to protect the environment and the health, safety and well-being of our guests, the people in the communities we visit and our shipboard and shoreside employees. This commitment holds true for every stage of the life and retirement cycle for each of our ships."
Carnival Corporation

Clean and safe solutions are already available. Less than a million Light Displacement Tonnes (LDT) were recorded recycled in EU-approved facilities in 2020, which represent a minor fraction of what these yards are able to handle. 

"We applaud companies, such as Carnival Corporation, that have a responsible policy for the recycling of their vessels ‘off the beach’. Now, we call upon policy makers to adopt effective measures, such as a return-scheme for ships, that will incentivise more owners to recycle their assets in a sustainable manner."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the data visualization of 2020 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2020, click here. *

 

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

** UPDATE 10 February 2021 - Teekay Corporation informed us that five ships (i.e. Aegean Leader, Petrojarl Cidade de Rio das Ostras, Navion Bergen, Navion Hispania and Apollo Spirit) have been incorrectly attributed to the company in our 2020 shipbreaking records. The documentation provided by Teekay Corporation shows that the company is not linked to any end-of-life sale in 2020. The Platform has therefore rectified the data concerning the beneficial ownership of these vessels. Whilst the Aegean Leader results to be linked to Japanese company NYK, the other four vessels result to be linked to Altera Infrastructure . Altera Infrastructure was formerly known as Teekay Offshore, from which Teekay Corporation divested its interest on April 30 2019.

 

NOTE

 

[1] The EU Ship Recycling Regulation became applicable on 30 December 2018. According to the Regulation, EU-flagged vessels have to be recycled in one of the currently 43 approved facilities around the world included in the EU list. EU-approved ship recycling facilities must comply with high standards for environmental protection and workers’ safety. The EU List is the first of its kind; is the only list of facilities that have been independently audited; and provides an important reference point for sustainable ship recycling. Any ship owner that wants to opt for safe and clean ship recycling can simply choose one of the facilities included on the List. No beaching yard is approved by the EU. 

 

Recent audits by the European Commission in Alang and media reports continue to flag serious concerns related to pollution of the intertidal area; absence of medical facilities; breaches of labour rights and lack of capacity to safely manage several hazardous waste streams, including mercury and radioactive contaminated materials that are typically found on offshore oil and gas units. As highlighted by several NGOs and legal experts at the Center for International Environmental Law (CIEL), a possible inclusion of Indian yards on the EU List of approved ship recycling facilities would further violate international waste legislation, and be in clear contradiction with the EU's new strategic economic and environmental policy initiatives embedded in the Green Deal.

 

Alang, India - © Amit Dave - Sep 2020
Dirty scrapping of FSO at claimed 'green' Leela yard in Alang, India - © Amit Dave - Sep 2020
Chattogram, Bangladesh - © C.F. - Feb 2019
Petrobras' ship Neusa in Chattogram, Bangladesh - © NGO Shipbreaking Platform - Jan 2021

Platform News – Platform welcomes new Indonesian partner organisation

The NGO Shipbreaking Platform, a coalition of environmental, human rights and labour rights organisations, welcomes the Nexus Foundation for Environmental, Health, and Development, also known as Nexus3 Foundation, as new partner organisation. 

 

The Nexus3 Foundation (f.k.a. BaliFokus Foundation) is based in Indonesia. The organisation works to safeguard both the public, especially vulnerable populations, and the environment from the negative impacts of global development, promoting a just, toxic-free, and sustainable future. Its goals are i) to support reducing and eliminating the world’s most hazardous chemicals, ii) to halt the spread of toxic metals, iii) to strengthen Indonesian chemical and wastes management policies, and iv) to enhance institutional capacity to enable communities and civil society organisations in Indonesia to promote safer chemicals and waste management. 

"It is good now to be part of the NGO Shipbreaking Platform, after having been engaged with some of its members on cross-campaigns for a number of years. We look forward to join forces and shed light on Indonesian dangerous shipbreaking practices and transboundary movements of hazardous waste by ships."
Yuyun Ismawati Drwiega - Senior Advisor and Co-founder - Nexus3 Foundation

Every year, numerous toxic ships and oil and gas wastes are illegally exported from Indonesian ports to the infamous shipbreaking beaches of South Asia. Recently, local activists and international NGOs warned Indonesian authorities about the illegal departure of several mercury-laden tankers, such as the FPSO Yetagun and the FSO J NAT. Oil sludge residues from the processing of crude oil extracted in the East-Asia region commonly contain mercury, which ends up contaminating the offshore units’ structures, tanks and piping. 

 

Exposure to mercury, even at low levels, has been linked to central nervous system damage, kidney and liver impairment, reproductive and development disorders, defects in fetuses and learning deficits. When heated up by simple methods such as sand blasting, water blasting, grinding and gas axing, extremely toxic mercury vapors are released, bypassing most commercial personal protection equipment (PPE). The toxicity of the vessels that are illegally exported from Indonesia is, however, not the only concern. In fact, media investigations also revealed appalling social and environmental conditions at small scrapping yards located in the country.

 

Shipbreaking in Cilincing, Jakarta - © Yudha Baskoro 2018
Shipbreaking in Cilincing, Jakarta - © Yudha Baskoro 2018
"Together with our new partners at the Nexus3 Foundation, we will keep raising awareness on the numerous illegal exports of toxics ships from Indonesia. We will also focus our attention on the appalling labour and environmental conditions at the domestic shipbreaking yards, to make sure the workers and the environment are fully protected."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

Press Release – NGOs call EU’s intent to export toxic ships to developing countries illegal and contrary to aims of Green Deal

The Basel Action Network (BAN), the European Environmental Bureau (EEB), Greenpeace, and the NGO Shipbreaking Platform, leading organisations active in the pursuit of preventing the environmental injustice caused by the dumping of hazardous waste, warn that the European Union's legislation allowing the export of toxic ships to developing countries violates Member States’ obligations under the Basel Convention and is in contradiction with the EU's new strategic economic and environmental policy initiatives.

 

In a new report entitled Contradiction in Terms: European Union must align its ship exports with International Law and Green Deal Policies, the NGOs call upon the EU to take urgent action to reform both the Waste Shipment Regulation and the Ship Recycling Regulation to ensure they are legally consistent with the international Basel Convention. They note with concern that proposals have been made for the EU to enter into a special bilateral agreement with certain shipbreaking states (e.g. India) as a supposed legitimate means to circumvent the Basel Convention’s Ban Amendment, which entered into global force last December [1]. Bolstered by a new analysis by the Center for International Environmental Law (CIEL) [2], the report explains why that is not acceptable both from a legal standpoint and as a matter of policy. 

"Put simply, the EU procedure of filling out paperwork and permitting toxic ships to go to the beaches of South Asia for the purposes of their disposal/recycling can never be an equivalent level of control and protection as a rule that bans such export. Now that the Ban Amendment is in force, it is binding international law. Shipbreaking yards in developing countries such as India, Pakistan and Bangladesh can therefore not be placed on the EU’s list of approved ship recycling destinations. "
Jim Puckett - Executive Director - Basel Action Network (BAN)

In light of the new European Green Deal - and at a time when 1) EU waste law is being recast to ‘facilitate preparing for re-use and recycling of waste in the EU’ and ‘restrict exports of waste that have harmful environmental and health impacts in third countries; 2) the EU’s Circular Economy Action Plan calls for ensuring that the EU does not export its waste challenges to third countries; and 3) the recently published Foresight 2020 report identifies the need for greater resilience in providing more green jobs in the EU - it seems especially incoherent for the EU to rely on faulty legal argumentation that would defeat the intent and purpose of the Ban Amendment while undermining the EU's strategic economic and environmental policy initiatives. 

"Such action will send a signal to the rest of the world that the EU is not serious about a responsible circular economy and international law. By allowing the breaking of European vessels in the Global South, Europe is not only exporting hazardous waste and threatening people’s health in developing countries, but also contradicting its own ambition to boost the domestic supply of secondary raw materials – as set out in its circular economy action plan. EU leaders must focus on reprocessing, reusing and recycling valuable materials, particularly steel, within Europe."
Stéphane Arditi - Circular Economy Policy Manager - European Environmental Bureau (EEB)

The NGOs call on the EU to seize the opportunity to boost safe and clean ship recycling in Europe, as well as to promote the design and building of toxic-free vessels and to push for ‘zero-emissions steel’ initiatives [3]. Such actions would enable Europe to offer proper recovery solutions for ships from all over the world.

"We fear that the EU is just fine with human rights, environmental treaties and a ‘green deal’ until it impacts the bottom line of powerful industrial interests. Instead of inventing exceptions to international law, we expect the EU to support its recycling sector and safeguard the environmental justice principles that it championed when supporting the Basel Ban Amendment - and now has put at the heart of its new Green Deal."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

NOTES

 

[1] The Ban Amendment to the Basel Convention, championed early on by the EU and now enshrined in international waste law, bans hazardous wastes of all kinds from being exported from developed to developing countries. The Basel Convention has already ruled that operational ships can be considered as hazardous wastes due to the many toxics embedded within their structure.  Yet, current EU law allows EU flagged vessels to be exported to any destination on an EU approved ship recycling facility list, regardless of whether it is a developing country or not.  

 

[2] The CIEL analysis explains that the Basel Convention does not allow reservations or exceptions, and only allows special separate agreements if they provide an "equivalent level of control."

 

[3] See Material Economics’ report Industrial Transformation 2050.

 

Platform News – NGOs distribute emergency food to shipbreaking workers in Bangladesh

The current COVID-19 pandemic is affecting workers globally, including those employed in the shipbreaking sector. In Bangladesh, authorities have imposed strict lockdowns which have particularly impacted the most vulnerable part of the workforce: the migrant workers. Deprived of accessing the meagre government support which is offered to local workers, and in most cases not having been paid their March salaries, migrant workers have furthermore been unable to return to their home villages as all public transport is closed. Forced to continue to pay rent for the unsanitary and improper accommodation near the shipbreaking yards, the migrant workers, mainly from the Northwest of Bangladesh, have been left to starve.

 

Given this unprecedented emergency situation, we decided to act. Thanks to the financial support received via our call for donations, our local member organisation OSHE Foundation managed to distribute food and personal protective equipment items to 130 of the most deprived shipbreaking workers’ families. Each family, comprising at least four members, received a package containing rice, potatoes, wheat flour, dal (dried, split pulses), cooking oil, salt, sugar, tea, potato, onion, chana dal (chickpeas), moori (puffed rice), one re-usable face mask and hand soap, ensuring subsistence for at least 10 to 15 days.

 

Work has been stopped for many days. We are having a hard time with our families. I can't get any help from anywhere. Such support from OSHE at this time has saved us. We will be able to spend the next days in peace”, said a worker named Quddus.

 

Krishna, a worker who lost his leg due to an accident at the shipbreaking yards, said: “I can't work due to my injury. My wife runs the household by doing some sewing work. It goes without saying that there is no work now because of Corona. I have two children. I already had to borrow some money to support the family. Now, I don't have to worry about food for the next 15 days. This is a happy day for my family”.

 

Shafi, one of the many victims of asbestos exposure, added: “I am suffering from asbestosis. I am the only one earning in the family. I can’ t always work because of my condition. I was feeling helpless in the present situation. This help from OSHE at such a time has saved me and my family”.

 

Whilst most of the shipbreaking yards in Chattogram remain closed, some have re-started cutting operations. According to local trade unions, these yards are not paying properly and the government assistance which local workers have received is negligible compared to the need.

"With the food packages distributed by OSHE, at least the workers are not compelled and exploited to go back to the yards and risk exposure to not only the extremely contagious COVID-19 virus in a society where many are deprived of accessing proper medical care, but also to the many dangers shipbreaking involves."
Sara Rita Da Costa - Project Officer - NGO Shipbreaking Platform

The NGO Shipbreaking Platform campaigns for safe and clean recycling and believes that ship owners have the responsibility to ensure that neither workers, nor the environment, and the communities that depend upon it, are harmed. The situation at the shipbreaking yards in Bangladesh is particularly dire: the many accidents - fatal and serious injuries - are telling of the appalling working conditions. The fact that workers are not paid or provided support during the COVID-19 lockdown is also telling of a completely lacking safety net, both from employers' and government level.

 

Once again, we express our gratitude for the support received via the donations, which made possible the distribution of emergency food assistance to more than  during this unprecedented and challenging period.

 

Press Release – NGOs urge Bangladesh authorities to halt the import of a highly toxic offshore unit that illegally departed from Indonesia

The Floating Storage and Offloading (FSO) tanker J. NAT is currently being towed towards the infamous shipbreaking beach of Chattogram. The vessel, formerly known as JESSLYN NATUNA, operated in the Natuna gas field and was owned by Indonesian company Global Niaga Bersama PT. It was recently sold to cash buyer SOMAP International, who re-named it to J. NAT and re-flagged it to Palau. SOMAP is a company specialised in trading end-of-life vessels to the beaching yards.

 

The FSO J. NAT left Indonesian waters on 18 April even though local activists warned Indonesian authorities about the toxicity of the vessel. Official documents indicate that the tanker has more than 1500 tons of hazardous waste from the oil extraction process onboard, including 1000 tons of slop oil, 500 tons of oily water and 60 tons of sludge oil. Lab results on a sludge sample shared with the Platform reveal mercury levels of 395mg/kg. The J. NAT likely also contains high amounts of mercury in its structures, as well as in ballast waters. 

 

The NGO Shipbreaking Platform, Basel Action Network (BAN), European Environmental Bureau (EEB), IPEN, Nexus3 Foundation and Zero Mercury Working Group have now warned Bangladesh of the breach of international waste laws [1], and urged authorities to halt the import of the contaminated ship. Ignoring illegal acts risks exposing the workers to severe harm and polluting the environment of Bangladesh. 

 

"In addition to the hazardous materials typically found on conventional ships, oil and gas structures, such as the J. NAT, are often contaminated by mercury. Mercury is a naturally occurring element present in virtually all oil and gas fields. Concentrations are especially high in the South American and East Asian regions."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Given the likely high concentrations of mercury in the steel hull of the FSO J. NAT and the blow torch method used to cut vessels, there is a high risk of inhalation of mercury vapour. Mercury is an extremely toxic metal. Exposure to mercury, even at low levels, has been linked to central nervous system damage, kidney and liver impairment, reproductive and developmental disorders, defects in foetuses and learning deficits. 

 

In a recent court judgment on the illegal import of another oil and gas unit – Maersk’s FPSO NORTH SEA PRODUCER – the Bangladesh Supreme Court denounced the fraudulent documents claiming that the vessel was toxic-free when it in fact was contaminated by radioactive substances. The Court called for full transparency on the hazardous materials onboard end-of-life vessels imported to Bangladesh.

"In light of the recent judgment on the North Sea Producer, there is no scope to give any authorization for import, beaching, and breaking of the J. NAT. It is public knowledge that Bangladesh will not be able to deal with the hazardous waste flow downstream. The vessel will simply flood our shores with toxic substances and expose our workers to deadly risks."
Syeda Rizwana Hasan - Supreme Court lawyer and Director of Bangladesh Environmental Lawyers Association

The Platform has documented drill ships, floating platforms, jack-up rigs and FPSOs/FSOs scrapped in recent years. Many were beached in South Asia, including units owned by Diamond Offshore, Maersk, Odebrecht, SAIPEM, SBM Offshore and Transocean. The J. NAT case resembles the recent export from Indonesia to the Indian beach of Alang of SBM’s mercury-laden tanker YETAGUN, which was investigated by Dutch media Zembla.  

"With many units to be decommissioned in the next few years, it is high time that the oil and gas industry collectively seeks sustainable solutions for the recycling of its floating units. All actors involved in the oil and gas supply chain, directly or indirectly, have the responsibility to not cause harm to workers and the environment in developing countries."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

NOTE

 

[1] Bangladesh and Indonesia are both signatories to the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal. Under this Convention, the trade in mercury and several other hazardous wastes that are likely contained within the structure of the FSO J. NAT is strictly controlled. The import of the vessel requires that there is prior informed consent (PIC) between Indonesian and Bangladeshi authorities and that the declarations of hazardous materials left on board must reflect actual conditions. Moreover, the Convention requires that no export be made if there is reason to believe that the recycling or waste management facilities employed for the materials will not constitute environmentally sound management under the Convention. The shipbreaking yards that operate on the tidal beach of Chattogram are well-known for their dangerous and polluting practices. 

 

Indonesia is also a party to the Minamata Convention, while Bangladesh has not ratified the treaty. Although the oil and gas sector is exempted from the international agreement in terms of their emissions management, countries must identify the potential sources of mercury emissions and releases within their own territory. Measures should be taken when high mercury sources have been identified. 

 

 

 

UPDATE: This post was updated on 1 May 2020 to specify the levels of mercury contamination in the sludge of the FSO J. NAT according to lab results shared with the Platform.

 

Press Release – BBC exposes dirty and dangerous scrapping of oil and gas units in India

Diamond Offshore and cash buyer GMS under the spotlight

 

A BBC Disclosure production released this week reveals the harm caused by shipbreaking activities in Alang, India, as well local officials’ and leading oil and gas companies’ efforts to cover up their unlawful practices. The investigation, conducted by journalists Mark Daly and Chris Foote, focuses on the attempt to illegally export a trio of floating rigs full of asbestos and mercury from the Scottish Cromarty Firth.

 

The BBC Disclosure documentary and longread trace five rigs that were sold in 2017 by oil and gas company Diamond Offshore to cash buyer GMS, one of the leading scrap dealers for end-of-life vessels. Two of the units — the Ocean Alliance and the Ocean Baroness — left the Gulf of Mexico and ended up on the shipbreaking beach of Alang, India. The other three — the Ocean Nomad, the Ocean Vanguard and the Ocean Princess — are still detained in Cromarty Firth by the Scottish Environment Protection Agency (SEPA). The NGO Shipbreaking Platform alerted SEPA in January 2018, only few days before the rigs were due to be removed from the Cromarty Firth, that the units were likely to end up on a South Asian beach for dirty and dangerous scrapping in breach of European and international environmental law.

"Our preference is that waste stays in Scotland and gets dealt with. If it’s going to move somewhere else, we need to make sure that it’s going to the right place, where it can be handled properly. If someone wants to do the wrong thing, it is our job to stop them."
Terry A’Hearn - Chief Executive - SEPA

Workers’ interviews and undercover footage obtained by BBC at the Indian shipbreaking yard where the Ocean Alliance was taken apart highlight breaches of labor rights, disregard for even the most basic health and safety standards, and extremely polluting practices. 

 

"Companies sell their end-of-life tonnage to the beaching yards as that is where they can make the highest profit. But these are profits made on the back of exploited workers and fragile ecosystems. Alang is furthermore a toxic hotspot, and, without a proper clean-up, the pollution caused by more than three decades of reckless shipbreaking will continue to harm the local environment and the communities that depend upon it for many years to come."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

90% of the world’s end-of-life tonnage is currently scrapped using the low-cost method of beaching. Oil and gas units are of particular concern due to the complexity of the breaking operations and their contamination by highly toxic substances such as mercury and radioactive materials. So far, the only structure which operated in the North Sea and which has been traced to a South Asian beach is the infamous FPSO North Sea Producer. It was owned by a Maersk-Odebrecht joint venture and was also sold to cash buyer GMS before it illegally departed the UK to Chittagong, Bangladesh, after having been deployed at the North Sea McCulloch field.  

 

"Many more offshore assets will need to be scrapped in the coming years. Companies that have owned and operated these units are responsible for ensuring that they are recycled without harming workers and the environment. For any unit having operated in the North Sea, there are more than enough options in Europe."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The BBC Disclosure report reveals how companies involved, as well as Indian local authorities, seek to thwart public scrutiny of the deplorable conditions in Alang. Also other journalists that have visited the Indian shipbreaking yards, often unannounced and undercover, have documented a reality that starkly contrasts with the industry efforts to greenwash beaching. In 2016, DanWatch revealed dire conditions at a yard Maersk and ClassNK had approved as safe and environmentally sound. More recently, French TV and Dutch programme ZEMBLA brought back similar accounts of the shipbreaking activities in Alang. The Dutch journalists revealed how workers unknowingly were exposed to highly toxic mercury fumes when torching apart an FSO owned by offshore company SBM.

 

Press Release – Platform publishes list of ships dismantled worldwide in 2019

Most shipping companies continue to opt for the highest price at the worst scrapping yards

 

According to new data released today by the NGO Shipbreaking Platform, 674 ocean-going commercial ships and offshore units were sold to the scrap yards in 2019. Of these vessels, 469 large tankers, bulkers, floating platforms, cargo- and passenger ships were broken down on only three beaches in Bangladesh, India and Pakistan, amounting to near 90% of the gross tonnage dismantled globally.

 

"Bangladesh remains the favoured dumping ground for end-of-life ships laden with toxics. There is wide-spread knowledge of the irreparable damage caused by dirty and dangerous practices on tidal mudflats, yet profit is the only decisive factor for most ship owners when selling their vessels for breaking."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 26 workers lost their lives when breaking apart the global fleet. The Platform documented accidents that killed 24 workers on the beach of Chattogram (formerly known as Chittagong), making 2019 the worst year for Bangladeshi yards in terms of fatalities since 2010. At least another 34 workers were severely injured. Whilst the total death toll in Indian yards is unknown, local sources and media confirmed at least two deaths at shipbreaking yards that claim to be operating safely, but have failed to be included in the EU list of approved ship recycling facilities [1].

 


DUMPERS 2019 – Worst practices

 

UNITED ARAB EMIRATES and GREECE top the list of country dumpers in 2019. UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2019: 45 ships in total. Greek owners closely followed with 40 beached vessels.

 

The ‘worst corporate dumper’ prize goes to the Taiwanese container shipping line Evergreen. In the last years, the company has been under the spotlight for its damaging shipbreaking practices. In January 2018, the Norwegian Central Bank announced its decision to divest from Evergreen due to the ship owner’s repeated sale of vessels for dirty and dangerous breaking on the beach of Chattogram. Since then, the company has clearly not changed its policy. Eleven of Evergreen’s vessels ended up in South Asia in 2019. On 23 July, cutter man Shahidul lost his life while working at Kabir Steel’s Khawja shipbreaking yard in Bangladesh. Shahidul was dismantling Evergreen’s EVER UNION when he fell from a great height. He died on the spot.

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Dry bulk shipping company Berge Bulk is runner-up for worst corporate practice. Four ships owned by the Bermuda-based ship owner ended up in Bangladesh for dirty and dangerous breaking. Berge Bulk’s scrapping practices should prompt the Lloyd’s List Asia Awards to withdraw the prize for “Excellence in Environmental Management” the company recently received for its commitment to environmental conservation. Indeed, there is nothing laudable about putting workers lives at serious risk and polluting sensitive coastal environments.

 

Danish container shipping giant Maersk scrapped four vessels on the Indian beaches last year. The company did not hesitate to leave the Danish shipping registry in order to circumvent the new EU laws requiring the use of EU-approved recycling facilities, and at least two of the ships even left EU waters in breach of an international and European ban on the export of hazardous waste to developing countries. In November, Bangladesh Courts condemned the illegal breaking of Maersk’s FPSO North Sea Producer which had been sold to cash buyer GMS and fraudulently exported from the UK in 2016. Criminal investigations are underway in the UK.

 

Other well-known shipping companies that in 2019 dumped their toxic ships on South Asian beaches include: Costamare, CMA CGM, Diamond Offshore, ENSCO, MOL, MSC, NYK Line, Tidewater and Vale.


In India, many yards now boast having upgraded their beaching facilities to comply with the requirements set by the International Maritime Organisation’s Hong Kong Convention. Recent inspection visits by the European Commission in Alang and media reports, however, flag serious concerns related to pollution of the intertidal area; absence of medical facilities; breaches of labour rights and lack of capacity to safely manage a number of hazardous waste streams, including mercury and radioactive contaminated materials that are typically found on offshore oil & gas units. No facility located in South Asia meets the safety and environmental requirements for EU approval.

 

All ships sold to Chattogram, Alang and Gadani pass via the hands of scrap-dealers, better known as cash buyers. These pay the highest price for end-of-life vessels and are inherently linked to the beaching yards. Cash buyers typically re-name, re-register and re-flag the vessels on their last voyage. Black-listed flags, such as Palau, Comoros and St Kitts & Nevis, were particularly popular in 2019: almost half of the ships sold to South Asia changed flag to one of these registries just weeks before hitting the beach. None were beached under an EU flag, despite many vessels having been sold by a European shipping company.

"Policy makers need to adopt effective measures to divert ships towards the sites that have been approved by the EU. The fact that old ships are registered under flags known for the poor implementation of international maritime law sheds serious doubt over the effectiveness of legislation based on flag state jurisdiction only, including the EU Ship Recycling Regulation."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Today banks, pension funds and other financial institutions are actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach, taking into account social and environmental criteria, not just financial returns, when selecting asset values or clients [2]. Police and environmental authorities are also increasingly monitoring the movements of end-of-life vessels. Following the Seatrade judgement in the Netherlands where, for the first time, a ship owner was held criminally liable for having intended to sell four end-of-life ships to Indian beaching yards, several other cases of illegal traffic are under investigation. [3] Aiding and abiding environmental crime is equally punishable: insurers, brokers and maritime warranty surveyors could therefore also be held liable. By unravelling the murky practices of shipbreaking, these cases highlight the importance of conducting due diligence when choosing business partners.

"Clean and safe solutions are already available. We applaud companies, such as Dutch Van Oord, that have had a responsible ship recycling policy ‘off the beach’ for many years. Whilst other ship owners lament over the lack of capacity to recycle sustainably, only 31 vessels were recorded recycled in EU-approved facilities, which represent a minor fraction of what these yards are able to handle."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the data visualization of 2019 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2019, click here. *

 

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

 

NOTES

 

[1] The EU Ship Recycling Regulation became applicable on 1 January 2019. According to the Regulation, EU-flagged vessels have to be recycled in one of the currently 41 approved facilities around the world included in the EU list. EU-approved ship recycling facilities must comply with high standards for environmental protection and workers’ safety. The EU list is the first of its kind; is the only list of facilities that have been independently audited; and provides an important reference point for sustainable ship recycling. Any ship owner that wants to opt for safe and clean ship recycling can simply choose one of the 41 facilities that are now included on the List.

 

[2] In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies, including containership company Evergreen, due to their beaching practices.

 

[3] In Scotland, Diamond Offshore and cash buyer GMS are still under investigation for having attempted to illegally export three heavily contaminated platforms that had operated in the North Sea and were cold-stacked in Cromarty Firth. The platforms have been detained in Scotland since January 2018.