What Happened
- GMS (Global Maritime Services), the world's leading cash buyer of ships for recycling, is urging the European Commission to grant recognition to Indian ship recycling yards at Alang, Gujarat, on the EU Ship Recycling List.
- Despite India ratifying the Hong Kong Convention in 2019 and having more than 110 yards with Hong Kong Convention Statements of Compliance, not a single Indian yard has been approved for the EU List in over a decade — even after 35+ formal applications and 10+ Commission-led audits.
- Alang's annual recycling capacity of approximately 4.5 million Light Displacement Tonnes (LDT) already exceeds the combined operational capacity of all facilities currently on the EU-approved list.
- The EU's refusal is grounded in the Basel Convention's Ban Amendment, which restricts hazardous waste exports from OECD to non-OECD countries — and end-of-life ships can be classified as hazardous waste.
- Lifecycle analysis shows that recycling steel at Alang emits 58% less CO₂ than producing virgin steel, and more than 98% of ship materials are recovered, making Alang environmentally competitive.
Static Topic Bridges
Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (2009)
Adopted by the IMO in Hong Kong on 19 May 2009, the Hong Kong Convention establishes global standards for safe and environmentally sound ship recycling. It requires ships to carry an Inventory of Hazardous Materials (IHM) throughout their operational life, and Ship Recycling Facilities (SRFs) to prepare Ship Recycling Plans and obtain authorisation from their flag state. The Convention entered into force on 26 June 2025, after meeting the twin thresholds: ratification by 15 states representing at least 40% of world merchant shipping tonnage and combined annual maximum ship recycling volume of at least 3% of gross tonnage.
- Adopted: 19 May 2009; Entered into force: 26 June 2025
- Key requirements: IHM (Inventory of Hazardous Materials) — surveys at construction, pre-sale, and pre-recycling stages
- Ship Recycling Facility Plan: SRFs must be authorised by their national authority
- India ratified: 2019 — several years ahead of most EU Member States
- Implementing body in India: Directorate General of Shipping (DGS) under Ministry of Ports, Shipping and Waterways; Ship Recycling Regulations 2013 and updated 2025 rules align with HKC
Connection to this news: GMS's argument is that Indian yards already comply with the Hong Kong Convention — the same standard the EU's Ship Recycling Regulation is designed to enforce. The refusal of EU listing despite HKC compliance exposes an inconsistency that GMS is now formally challenging.
Basel Convention and the Hazardous Waste Export Ban
The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal was adopted in 1989 and entered into force in 1992. The Basel Ban Amendment (Decision III/1, 1995) prohibits the export of hazardous wastes from Annex VII countries (OECD, EU, Liechtenstein) to non-Annex VII countries (the rest of the world). End-of-life ships may be classified as hazardous waste because they contain asbestos, PCBs, heavy metals, and residual oils. This creates a direct conflict with the Hong Kong Convention — a ship compliant under HKC may still qualify as hazardous waste under Basel.
- Basel Convention: Adopted 1989; India ratified 1992; 187 parties
- Basel Ban Amendment: Entered into force 5 December 2019; restricts OECD→non-OECD hazardous waste exports
- Ship classification: End-of-life ships can be "hazardous waste" if they contain listed substances under Basel Annex VIII
- IHM requirement under HKC is meant to address the Basel concern by inventorying and managing hazardous materials before recycling
Connection to this news: The EU refuses to approve Indian yards precisely because of the Basel Ban Amendment — ships registered in EU member states could be seen as exporting hazardous waste to India if sent to Alang. GMS argues that HKC compliance and IHMs resolve this concern and that blanket geographic bans are unjustified.
EU Ship Recycling Regulation (2013) and the European List
The EU Ship Recycling Regulation (Regulation 1257/2013) — which entered into force on 31 December 2018 for EU-flagged ships — requires that EU-flagged vessels be recycled only at facilities on the EU Ship Recycling List, which the European Commission maintains. Facilities must meet standards equivalent to the Hong Kong Convention and must not be subject to the Basel Ban. The List currently contains facilities only in Europe, Turkey, and the United States — zero from Asia, despite Asia (primarily India, Bangladesh, and Pakistan) handling ~80% of global ship recycling by tonnage.
- EU Ship Recycling Regulation 1257/2013: Applies to EU-flagged ships of >500 GT
- EU List criteria: Environmental standards, worker safety, hazardous material management
- Current EU-approved capacity: Insufficient — European yards cannot absorb EU fleet's end-of-life tonnage
- Alang's annual capacity: ~4.5 million LDT; all current EU-listed facilities combined: less than Alang alone
Connection to this news: The capacity mismatch is central to GMS's argument — EU's own fleet cannot be recycled sustainably without including high-capacity, HKC-compliant yards like Alang. The exclusion forces EU shipowners toward non-compliant alternatives in Bangladesh and Pakistan that have lower standards than Alang.
India's Ship Recycling Industry — Economic and Environmental Significance
Alang in Bhavnagar district, Gujarat, is the world's largest ship recycling yard by beachable length (approximately 10 km of coastline). It employs approximately 30,000–50,000 workers directly and many more indirectly. Ship recycling at Alang recovers steel, non-ferrous metals, furniture, machinery, and electrical equipment — making it a significant circular economy contributor. India's Ship Recycling Act, 2019, aligned domestic law with the Hong Kong Convention framework ahead of its entry into force.
- Alang location: Bhavnagar district, Gujarat; approximately 50 km from Bhavnagar city
- Employment: 30,000–50,000 direct workers; mostly migrant workers from UP, Bihar, Odisha
- Ship Recycling Act, 2019: India's domestic legislation aligning with HKC; enacted before HKC entered into force
- Environmental performance: 98%+ material recovery rate; 58% lower CO₂ vs. virgin steel production (lifecycle analysis)
- Global market share: India handles approximately 30% of global ship recycling by tonnage
Connection to this news: EU recognition would unlock access to a large pool of EU-flagged vessels currently barred from Alang — boosting India's circular economy, steel recovery, and circular manufacturing ecosystem in Gujarat's industrial belt.
Key Facts & Data
- Hong Kong Convention: Entered into force 26 June 2025; India ratified 2019
- Alang capacity: ~4.5 million LDT annually — exceeds combined EU-listed facilities
- Indian yards with HKC Statements of Compliance: 110+; formal EU applications: 35+; EU approvals: 0
- Basel Ban Amendment: Entered into force 5 December 2019
- Alang environmental performance: 58% lower CO₂ vs. virgin steel; 98%+ material recovery
- India's Ship Recycling Act: 2019
- Alang employment: 30,000–50,000 workers
- GMS's ask: European Commission to approve HKC-compliant Indian yards; resolve Basel-HKC conflict via facility-level assessments