South Asian ship recyclers remain excluded from EU’s approved list despite HKC certification

• Over 110 HKC compliant yards in India excluded
• South Asia remains central to global ship recycling

The European Commission has released the 15th edition of its approved ship recycling facilities list, covering 41 yards across Europe, Turkiye, and the US. However, South Asia has once again been excluded, despite significant improvements in infrastructure and compliance. Over 110 Indian yards now hold Hong Kong Convention (HKC) Statements of Compliance, along with 23 authorised facilities in Bangladesh, yet none have been included in the EU list.

Market reality vs policy gap

This continued exclusion highlights a clear gap between regulatory intent and actual market dynamics. South Asia accounts for nearly 80% of global ship recycling volumes, making it the dominant hub. Despite this, EU rules—requiring EU-flagged vessels to be recycled only at listed facilities—have had limited impact on global recycling flows, which continue to favour South Asian yards due to cost efficiency and capacity.

The largest ship recycler from Bangladesh commented, “We believe the European Commission’s stance appears heavily influenced by NGO pressure, limiting a more pragmatic assessment of global capabilities. There is a growing view that the EU continues to underestimate the progress made by ship recycling yards in India, Bangladesh, and Pakistan, despite significant improvements in compliance and standards.”

A market participant from Turkiye noted: “The EU’s cautious approach may stem from the large number of yards in Asia and the time required to align all facilities with its standards. However, there is a growing view that a unified global framework would be more effective than region-specific regulations.”

Sources indicated that NGO influence continues to shape the narrative, often focusing on negative aspects while overlooking improvements at compliant yards. “Several market participants believe that certain South Asian facilities already meet the required standards and deserve recognition under a more balanced and practical evaluation system,” another source said.

Structural policy limitations

The EU framework remains largely region-focused, prioritising its own regulatory standards over global alignment. In contrast, the HKC provides a lifecycle-based compliance system with monitoring, certification, and accountability across the ship’s life. Industry participants argue that many South Asian yards now meet or even exceed EU standards but remain excluded due to structural policy limitations.

Outlook

Pressure is building for a more inclusive and globally aligned approach. Greater alignment with HKC standards could improve environmental outcomes while reflecting real market conditions. Until then, the gap between regulation and reality is likely to persist.