IndustriALL Europe and the NGO Shipbreaking Platform issued a joint statement calling on the European Commission to adopt a robust European Industrial Maritime Strategy that places safe and circular ship recycling at the heart of Europe’s maritime manufacturing sector, and acknowledges its strategic importance.
Ship recycling is a high-skill and labour-intensive activity that could positively contribute to Europe’s circular economy and decarbonisation efforts. Yet, even though around 35% of the global fleet is EU/EFTA-owned, only 1% of these are recycled in EU-approved ship recycling facilities. This represents a large missed opportunity as valuable materials from end-of-life ships, predominantly steel, are lost to foreign markets. In addition, quality jobs in the European industry are threatened due to the unfair competition.
Since a surge in the number of end-of-life ships to be dismantled is expected in the next decade, the EU must be ready to accommodate this by creating a tailored policy environment. Studies estimate that up to 12 Mt of scrap steel from EoL vessels could be yielded per year, which, in current numbers, would cover approximately 20% of Europe’s scrap steel use.
In order to secure secondary raw materials, reinforce industrial autonomy, and create decent jobs across the maritime value chain, the organisations propose concrete policy measures to be clearly embedded in the upcoming Industrial Maritime Strategy:
- recognise ship recycling as a strategic maritime industry essential for climate, circular economy, and raw materials security and autonomy,
- close loopholes in the EU Ship Recycling Regulation and the Waste Shipment Regulation that allow ship owners to circumvent obligations and export hazardous waste to third countries, namely by including Beneficial Ownership of vessels,
- embed strong social conditionality in public funding and industrial support to ensure that ship recycling contributes not only to environmental objectives, but also to high quality industrial employment and long-term skills retention in Europe,
- prepare for the anticipated wave of end-of-life vessels to be dismantled by supporting the EU ship recycling sector, ensuring safe and environmentally sound recycling of vessels,
- support creation of jobs in the ship recycling sector, which could revitalise EU regions affected by the decline in shipbuilding sector, on certain conditions: maintaining high occupational health and safety standards in the sector, promoting job stability, including fair and stable contracts for workers, and contributing to skills development in the field,
- continue supporting innovative projects, such as Oppsirk or CirclesOfLife, that could be scaled up with tailored policy support, and further contribute to EU’s industrial autonomy and resilience.
In July last year, NGO Shipbreaking Platform provided feedback to the consultation on the Strategy, where a need for tailored policy support for the EU ship recycling sector was identified. Without decisive EU policy, Europe will continue to lose valuable secondary raw materials to foreign markets, weaken its industrial base, and miss a pivotal chance to create sustainable, high skill jobs. By acting now, the EU can turn ship recycling into a cornerstone of its industrial resilience, climate ambition and social equity.
