Explanatory Notes
BIMCO members have access to the supporting explanatory notes.
RECYCLECON 2026 is BIMCO’s standard contract for the sale of vessels for recycling in a safe and environmentally sound manner. It replaces the first edition issued in 2012. The revision reflects the entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) on 26 June 2025, changes in current ship sale and purchase practice and the need for clearer payment, documentation, compliance and default provisions.
RECYCLECON 2026 is intended for use in recycling transactions worldwide. It is firmly based on the main requirements of the Hong Kong Convention, including the Inventory of Hazardous Materials, the Ship Recycling Plan, authorisation of the Ship Recycling Facility and the Statement of Completion. At the same time, the contract does not attempt to reproduce every international, regional or domestic regime that may apply to the sale, export, import, transit or recycling of a particular vessel. Parties must identify all laws applicable to them, the vessel, the flag state, the Place of
Delivery and the state of the Ship Recycling Facility and make transaction-specific amendments where required.
It should be noted that the expression “green recycling” used in the title of the 2012 edition has been replaced by “safe and environmentally sound recycling”. The revised wording follows the terminology of the Hong Kong Convention.
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Regulatory framework and specific recycling features
Recycling method – RECYCLECON 2026 does not prescribe a particular method of recycling. The parties must ensure that the selected Ship Recycling Facility and the recycling of the vessel comply with the laws and regulations applicable to the transaction and with the Ship Recycling Facility Plan and the Ship Recycling Plan. The suitability and legality of any particular recycling method must therefore be assessed in the light of the applicable regulatory requirements and the approved plans.
Ship Recycling Facility Plan – The Ship Recycling Facility identified in Box 4 must be an authorised site, yard or facility designed, constructed and operated in a safe and environmentally sound manner. The Ship Recycling Facility Plan is the facility-wide plan prepared by the Ship Recycling Company in accordance with applicable laws and relevant IMO Guidelines and addresses the operational, safety, environmental and hazardous-material management procedures of the facility. The Sellers are entitled to obtain access to the Ship Recycling Facility to verify compliance with the Ship Recycling Facility Plan and to ascertain that the recycling of the vessel is being carried out in accordance with both the Ship Recycling Facility Plan and the vessel-specific Ship Recycling Plan.
Inventory of Hazardous Materials – To the extent applicable, the Sellers provide Part I and provisional Parts II and III of the Inventory of Hazardous Materials on signing and final Parts II and III when notice of readiness is tendered. This staged approach provides the information required for preparation of the vessel-specific Ship Recycling Plan while recognising that the operational wastes and stores recorded in Parts II and III may change before the vessel reaches the Ship Recycling Facility.
Ship Recycling Plan and Authorisation – Following receipt of Part I and provisional Parts II and III of the Inventory of Hazardous Materials, the Buyers provide the Sellers with the vessel-specific Ship Recycling Plan approved by the competent authority of the state of the Ship Recycling Facility, together with the Document of Authorisation for the Ship Recycling Facility. The Sellers subsequently provide the International Ready for Recycling Certificate or a statement of compliance when notice of readiness is tendered. This obligation is subject to the Sellers having received the approved Ship Recycling Plan and the related authorisation documents, since the readiness certificate cannot be obtained independently of that regulatory sequence.
Statement of Completion – Within two weeks after completion of recycling, the Buyers provide the Sellers with the Statement of Completion in Annex D (Statement of Completion). This gives the Sellers contractual evidence that the agreed recycling process has been completed.
EU ETS and FuelEU Maritime – EU ETS and FuelEU Maritime are not addressed by specific provisions in RECYCLECON 2026 because the form is intended for worldwide use and many recycling transactions may have no relevant EU connection. Where the vessel traded in the EU during the relevant preceding period, or EU ETS obligations may crystallise after delivery, the parties should consider whether BIMCO’s standard EU ETS clause should be added. The parties should separately consider whether any transaction-specific FuelEU Maritime wording or related documents are required and whether relevant documents should be included in Annex C (Documents).
The Revision Team
RECYCLECON was revised by a subcommittee representing shipowners, recyclers, brokers, legal advisers and BIMCO regulatory expertise. BIMCO is grateful to the following members for their contributions:
- Peter Laurijssen, CMB (Chairperson
- Charlotte Grandjean, CMA CGM
- Melissa Cacciotti, Laura Molck and Anisha Franklin, MSC
- Dimitris Ayvatoglu, Leyal Ship Recycling
- Anthia Savvidou, GMS
- Darren Lepper, Clarksons
- Mark Johnson, Hill Dickinson
- William MacLachlan, HFW
- Gudrun Janssens, BIMCO
Secretariat support was provided by Zehra Göknaz Engin and Indu Chitran.