EU committee moves to block Indian shipyards from recycling list

MEPs argue beaching method violates environmental standards

Committee members argued that facilities using the beaching method cannot be accepted on the EU list because they fail to meet European standards for environmental protection and worker safety. MEPs stated that the beaching process makes it difficult to contain pollutants and questioned whether downstream waste treatment at these sites meets requirements equivalent to those in the EU.

One member of the European Parliament noted that the EU has maintained ship recycling regulations since 2013, with all parliamentary groups initially united in the position that they did not want beaching. The law contains specific requirements for authorised recycling facilities, and members argued these cannot be met on a beach.

During the debate, an MEP asked if any members would accept the dismantling of a ship on a European beach. The same member argued that allowing Indian competitors to use the beaching method creates unfair competition for the European recycling sector.

The MEP further questioned how Indian facilities could handle hazardous metal waste if they cannot adequately process non-hazardous metal waste. The committee argued that the current proposal to include these yards violates European law and could undermine the European recycling industry. They suggested that ship owners would have little incentive to send vessels to European facilities if they can legally use Indian yards at lower standards and higher profit margins. The committee formally requested a replacement proposal because the Indian facilities do not meet ship-recycling and downstream waste-management standards.

Shipping associations defend Indian yard investments

Major international shipping associations, including BIMCO, the International Chamber of Shipping, INTERTANKO, INTERCARGO, and the European Community Shipowners’ Associations, have backed the inclusion of the two Alang recyclers. The European Community Shipowners' Association stated that individual assessments and inspections have shown the yards comply with EU requirements.

The association argued that compliant facilities should be recognised regardless of their geographical location. ECSA secretary-general Sotiris Raptis said that approval would acknowledge the investments made to meet European standards. He added that additional compliant capacity is important to encourage safer ship recycling internationally.

That study supported a clearer route for overseas facilities to qualify for the EU list.

European Commission maintains compliance-based approach

The European Commission defended its proposal by stating that the regulation does not outright prohibit beaching. The Commission said that the regulation requires facilities to meet safety, pollution-control, and hazardous-material requirements.

The Commission does not endorse beaching as a generally accepted practice. However, a beaching facility can be accepted if it demonstrates compliance with standards for human health and environmental protection.

Indian facilities report modernization and compliance efforts

The two Indian yards have made significant investments to meet the EU regulation’s criteria for the protection of human health and the environment.

Upgrades at the Indian yards include impermeable working surfaces and drainage systems.

They have also installed mechanised lifting equipment and segregated hazardous-waste storage. The facilities have established authorised disposal arrangements for materials.

NGO Shipbreaking Platform supports committee objection

The NGO Shipbreaking Platform welcomed the committee vote. The organisation stated that approving the yards would weaken the environmental safeguards of the regulation.

Plenary vote scheduled for late November

The European Parliament's objection will be put to a plenary vote expected by the end of November. The committee’s objection is expected to be taken to the Parliament’s plenary later in November.

The Shipbreaking Platform notes that a parliamentary objection would not legally force the Commission to withdraw its proposal, as member-state consideration is a separate step. For the two Alang facilities, European approval remains unresolved.

Context of EU ship recycling capacity and regulations

If the EU regulation had banned beaching, Indian yards would not be considered for inclusion.

The EU-India trade pact, concluded a few months earlier, included ship recycling in its scope.

EU-based yards currently recycle only about 20 large vessels each year. BIMCO estimates that about 16,000 ships will need recycling over the next ten years.