Hong Kong Convention vs EU Ship Recycling Regulation: Where we stand

In an effort to reduce the negative impacts linked to the recycling of ships, the European Parliament and the Council of the European Union adopted the Ship Recycling Regulation (EU SRR) in November 2013.

The Hong Kong Convention: At a glance

The Hong Kong Convention was developed with input from  IMO Member States and non-governmental organizations, and in co-operation with the International Labour Organization and the Parties to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. The main intention is to regulate that the design, construction, operation and preparation of ships, as well as, the operation of ship recycling facilities, will occur in a safe and environmentally sound manner. Additionally, it aims to the establishment of an appropriate enforcement mechanism for ship recycling, incorporating certification and reporting requirements.

The Hong Kong Convention puts the responsibility for its enforcement on the vessel’s flag state and the recycling state. A ship to which the Convention applies to may – in any port or offshore terminal of another Party – be subject to inspection by officers authorized for the purpose of determining whether the ship is compliant. If the ship is detected to be in violation of the Convention the Party carrying out the inspection will take steps to warn, detain, dismiss, or exclude the ship from its ports.

The Hong Cong Convention still awaits for its ratification and will enter into force 24 months after it has been ratified from 15 States, representing 40 per cent of the worlds’ merchant shipping by gross tonnage.

The Hong Kong Convention:  Key Highlights

• The Convention suggests an initial survey to be carried out to verify the Inventory of Hazardous Materials, additional surveys during the life of the ship and a final survey prior to recycling.
•  Ship recycling yards will need a Ship Recycling Plan for each specific ship explaining the exact manner of the process and assuring the safe handling and disposal of hazardous materials.
• An appendix provides a list of hazardous materials, the installation or use of which is prohibited or restricted in shipyards, ship repair yards and Parties to the Convention.
• The Ship Recycling Plan has to be implemented safely by trained workers taking all safety precautions and having adequate updating on the progress.
• A detailed ship recycling completion report is needed since transparency is of outmost importance.
• In the Ship Recycling Yards the parts of the ship are melted and used in steel mills and the engines, generators and panels are resold. Lifeboats and furniture are resold to local fishermen and other coastal communities.

EU Ship Recycling Regulation: At a glance

According to the EU Ship Recycling Regulation, as of December 2018 EU-flagged vessels that reach the end of their operational lives will be recycled in facilities included on the European list of approved ship recycling facilities.

The Regulation enhances the Hong Kong Convention requirements, but also includes additional safety and environmental ones, overall setting higher standards. It includes requirements for toxic waste management as well as labour rights and the beaching method is banned. Furthermore, EU listed ship recycling facilities are subject to more scrutiny since independent certification and auditing third parties are allowed to submit complaints in case they suspect that a listed facility is not complying with the Regulation. Overall, the EU List acts as an important market differentiator for shipyards that have invested in occupational safety and environmental standards.

A major disadvantage of the EU Ship Recycling Regulation, though, is that shipowners can find a way around the law by swapping their EU flag for a non EU flag. This act, while strongly criticized, indicates the importance of more than flag state jurisdiction to hold the shipping industry accountable. Proper implementation of the Regulation necessitates that ship owners are given incentives to use EU-approved recycling facilities and not flag out to bypass the law.

EU Ship Recycling Regulation: Key Highlights

• From December 2018 EU-flagged commercial vessels above 500 GT, or third-party flagged vessels called at European ports, have to be recycled in ship recycling facilities that are included on the European list (EU List) of approved facilities.
• The List was first established in 2016 and is being updated from time to time to add additional compliant facilities or remove those who don’t comply. Currently, it includes 34 shipyards globally.
• The facilities that are included must comply with certain safety and environmental requirements.
• For European facilities the national authorities of the Member States specify to the Commission which of them are compliant. Facilities in third countries that want to recycle ships with a flag of a Member State need to apply to the Commission in order to be included in the EU List.
• Ships will be obliged to carry onboard an Inventory of Hazardous Materials from December 2020, and EU-flagged vessels scheduled to be recycled after December 2018 ought to have a Ready for Recycling Certificate (RRC).
• Having a RRC means that those vessels will only be sent to the yards included in the European List of Ship Recycling Facilities.