Current status on ship recycling

Legal instruments shaping ship recycling 

There are several legal instruments- global and regional- that shape ship recycling. Firstly, there is the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (BC), which has two aims. Its first aim is to ensure that states observe the fundamental principles of environmentally sound waste management. The second aim is to regulate the transboundary movement of hazardous and other wastes. The BC is a UN treaty which entered into force in 1992.  

A decision made at the Conference of the Parties (COP) to the BC in 2004, resulted in parties being able to consider end-of-life ships as hazardous waste from the moment the owner intends to discard of the ship. The consequence of the decision effectively means a ship can be waste under the BC and, at the same time, a ship under other international conventions. This is simply not implementable in real life – a ship cannot be both a ship and waste. Applying BC requirements result in restricting the ship from trading freely. Making it therefore impossible to act as a ship. It is notable that this is not applied in the same way to other similar industries such as aerospace.

In addition to BC, there is the Basel ban amendment. It specifically prohibits the export of hazardous waste from developed to developing countries. 

Regionally, the European Union has implemented both the BC and the Basel ban amendment through the EU Waste Shipment Regulation (EU WSR). 

Given the global nature of the shipping industry and the practices associated with sending end-of-life ships for recycling, there has been difficulty in applying the provisions of the Basel Convention to ship recycling. Parties to the BC recognised that Basel controls may often be circumvented for ships going for recycling and as such requested the IMO to develop regulations to ensure the global safe and environmentally sound recycling of ships, more fit to the intricacies of the global shipping and ship recycling industry.  

Recognising at the time of the request from the Basel parties that ship recycling practices needed to be improved globally, the IMO member states, including EU member states, introduced more robust regulations regarding end-of-life ships through the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).  

While waiting for the HKC to enter into force and given the limitations of the EU WSR, the EU implemented the EU Ship Recycling Regulation (EU SRR) as a regional framework for ship recycling within its member states.   

The Entry into force of the HKC – 26 June 2025 

 
Upon its entry into force the HKC acts as the global legal instrument ensuring safe and environmentally sound ship recycling practices. It sets out guidelines for shipowners, recycling facilities and governments, aiming to reduce the environmental and human health risks associated with ship recycling. 

For the first time ever, ship recycling yards will need to be authorised by their competent authorities, against common global standards. They will be required to provide a Ship Recycling Plan, to specify the way each individual ship will be recycled, depending on its particulars and its inventory.   

Since the adoption of the Hong Kong Convention in 2009, several facilities in the main recycling states have made significant efforts towards upgrading their facilities and have received a Statement of Compliance (SOC) from well-known and respected classification societies. With the entry into force, focus can increasingly turn to these facilities and increase the much-needed global recycling capacity at yards complying with universal standards.   

Navigating legal uncertainty 

The fact that the various legal instruments overlap each other to varying degrees can however still create uncertainty and a lack of uniformity in ship recycling practices across different jurisdictions. To try and address these legal uncertainties, BIMCO has made submissions to both the IMO MEPC as well as the Basel COP. 

As an outcome, on 1 November 2024, the IMO published provisional guidance on the implementation of the Hong Kong and Basel Conventions with respect to the transboundary movement of ships intended for recycling. Whilst this is a significant and positive step the need to bring the issue to the attention of relevant meetings under the Basel Convention still exists.  

So what happened at Basel COP 17? 

Whilst Basel COP 17 held in April 2025 adopted a decision welcoming the entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), unfortunately, there was no agreement to provide further clarity on the interplay between the Basel and Hong Kong Conventions This postponement is bad news for both shipowners and ship recycling facilities that have taken steps forwards to meet the HKC requirements.  

The postponement is incomprehensible, given the number of ships that are expected to be up for recycling the coming decade. While there is a clear need for more investments in HKC compliant capacity, it seems that this sense of urgency is not fully understood.  

What now? 

In the meantime, some states may enforce the EU SRR or the Basel Ban amendment yet others may not enforce any specific regulation at all. Furthermore, ships flying the flag of an EU member state have limited recycling facility options due to the EU list, whereas ships not flying the flag of an EU member state will be able to opt for facilities globally which are compliant with the Hong Kong Convention requirements. 
 
To address this legal uncertainty, it is crucial to continue to focus efforts on establishing a cohesive and harmonised regulatory framework. To allow for proper functioning and enforcement of the HKC and provide legal certainty to the shipping industry, work is still needed to determine how the HKC will exist alongside the Basel Convention.  

A solution might well be feasible. In 2011, at Basel COP 10, parties almost agreed on an equivalent level of control between both legal instruments the HKC and the BC. The outcome of future intergovernmental discussions at the IMO and Basel level will hopefully pave the way for a more streamlined and effective ship recycling process globally. 

And what can the IMO do? 

At MEPC 83, member states agreed to a new output on ship recycling to take place over two two-year periods.   

The entry into force in June 2025 of the Hong Kong Convention (HKC) will herald a new era in ship recycling by introducing safety, human health and environmental requirements at the end of life of ships. However, it has been 15 years since the HKC was adopted, and based on experiences with other IMO conventions, various issues will arise at the early phase of implementation of a convention.  

By facilitating a smooth implementation of the HKC during the experience-building phase, stakeholders can work towards a cohesive approach that not only adheres to international norms but also supports continuous improvement and transparency.   

We will work with our ship recycling alliance to contribute to the experience-building phase, with a focus on improving safety and environmental measures and increasing knowledge sharing particularly related to best practices.