Recycling 005 India

What's happening in ship recycling?

Published
16 June 2026

The BIMCO Ship Recycling Alliance was established in 2024 to coordinate the global voice of the ship recycling and shipping industries. Its primary goal is to promote safe and environmentally sound ship recycling practices worldwide.  
 
And a year has now passed since the entry into force of the Hong Kong Convention.  

Contents

BIMCO Ship Recycling Alliance sharpens focus on Hong Kong Convention implementation debate 

Pakistan’s ship recycling progress deserves more attention

Recycling sanctioned ships is the next difficult test

BIMCO Ship Recycling Alliance sharpens focus on Hong Kong Convention implementation debate 

For decades, the ship recycling industry has been branded one of the most dangerous industries in the world for workers and the environment. The branding and reputation, especially in South Asia, follow years of unregulated ship recycling and multiple examples of recycling practices that have harmed the environment and injured or killed workers. 

India already started improving its ship recycling practices in Alang in 2012 and more changes can now be seen throughout the region. On 26 June 2025, the Hong Kong International Convention for the safe and environmentally sound recycling of ships (HKC) entered into force, marking a turning point for the future of ship recycling. 

Since its establishment in November 2024, the BIMCO Ship Recycling Alliance has focused much of its work on helping shipping and the ship recycling industries speak with a coordinated voice on global regulations. A key priority has been the relationship between the Hong Kong Convention and the Basel Convention, including preparations for the meetings of the IMO in London and of the Basel Convention in Geneva. Through its working groups and plenary discussions, the alliance has helped develop industry input on how the two frameworks can be applied in a complementary and legally workable way with the HKC addressing the core recycling process and transboundary movements, and the Basel Convention governing downstream waste management. 

Over the past few months, the alliance has spent time collecting implementation experiences from the early application of the Hong Kong Convention. This has included work through its implementation working group, discussions on certification and verification challenges, and preparation to engage with IMO’s experience-building phase under the PPR Sub-Committee. The alliance is presently working to see how cross checks can be established to mitigate the possibility of having unrecognised entities issue certificates. Another important point being discussed is the delays being experienced by ship recycling facilities on issuance of the Document of Authorisation to Conduct Ship Recycling (DASR) in India. Members also considered the potential activation and timing of a working group on accidents and incidents information-sharing, provided it is anonymised, non-blaming and focused on prevention.  

In parallel, the alliance has followed regulatory developments in the EU, including the revision of technical guidance for facilities in third countries and the implications this may have for South Asian yards seeking to meet international standards.

From a broader perspective, the alliance has worked to support practical progress on the ground and improve communication around the sector. This includes stronger outreach to explain how ship recycling is changing and how shipping is adapting. Taken together, the alliance’s work over the past year reflects a growing effort not only to respond to regulatory change, but also to shape a safer, more credible and more workable future for ship recycling. 

Pakistan’s ship recycling progress deserves more attention 

Pakistan’s progress on ship recycling is often overlooked, but that should change.  

The situation of ship recycling in Pakistan is often discussed alongside Bangladesh, India and Türkiye as part of the broader regional shift toward safer and more environmentally-sound recycling. However, Pakistan also has its own transformation story, even if progress there remains slower and more uneven than elsewhere. 

For about three years, Pakistan has been working toward Hong Kong Convention compliance. A clear achievement is that three yards have recently received HKC Statements of Compliance. It would be easy to treat that as evidence of a failure. But in reality, it shows how demanding the transition is when yards, authorities and supporting institutions are still building the systems needed for implementation. Pakistan’s experience shows that reform takes time but is possible. 

The broader lesson is that progress should not be judged only by the number of certificates issued. It also depends on legal frameworks, administrative capacity, technical expertise and coordination between industry and authorities.  

Pakistan’s position matters strategically as a main ship recycling state in South Asia. It therefore deserves closer attention, not as a side note, but as part of the main story. The transition is difficult, imperfect and slower than many would like. But it is still part of a broader regional forward-looking movement that deserves recognition and support.  

Recycling sanctioned ships is the next difficult test 

A growing challenge in ship recycling is how to deal with sanctioned ships at the end of their lives. As more vessels become subject to sanctions, the question is how they can still be recycled safely, lawfully and responsibly. This may become one of the next major tests for the credibility of the global ship recycling system. 

The difficulty is practical. Sanctioned ships still need to be recycled when they reach the end of their operational life, but sanctions can complicate ownership, sale and transfer arrangements. Recyclers coming into contact with a sanctioned ship or a sanctioned company can themselves become impacted by sanctions regimes. These ships may be at risk of being abandoned or recycled in a substandard or unsafe way, pushing them further into channels with weak transparency and oversight. 

This matters because responsible recycling depends on a clear chain of custody. If a sanctioned ship cannot be sold or transferred in a straightforward way, it becomes harder to ensure that it reaches a compliant yard under proper oversight. The issue is therefore not only about sanctions law, but also about environmental protection, worker safety and regulatory consistency. 

Recently, the EU opened the possibility, through its 20th sanctions package, of an exemption for sanctioned ships with an EU nexus, allowing them to be sold for safe and environmentally sound recycling. This is an important step, because sanctions policy should not encourage unsafe disposal or indefinite abandonment of end-of-life ships. 

At the same time, the US has approved the recycling of four Office of Foreign Assets Control (OFAC)-listed container ships. While this is a positive step, it reflects a narrow set of circumstances that is unlikely to apply to the many other ships subject to OFAC sanctions. A broader, more comprehensive approval process is therefore needed to enable such ships to be recycled in a manner that is safe and environmentally sound. 

The broader challenge is to ensure that sanctions regimes and ship recycling rules work together rather than juxtapose. End-of-life ships do not disappear because legal restrictions make them harder to handle. If governments want sanctioned ships to be recycled responsibly, they will need workable solutions that preserve both sanctions objectives and environmental and safety standards.