The European Commission has proposed the inclusion of two Indian ship recycling facilities on the European List of approved ship recycling facilities, marking a significant development for India’s ship recycling industry. According to the European Shipowners | ECSA, both facilities have undergone extensive evaluation and inspection and have been found to comply with the requirements of the EU Ship Recycling Regulation.
The proposal could open the door for ship recycling facilities outside Europe to gain recognition under the EU’s stringent environmental, health and safety standards, provided they demonstrate compliance with the prescribed requirements.
However, the proposed inclusion has sparked debate among environmental organisations, trade unions and European recycling associations, particularly over the beaching method adopted by the two Indian facilities. The method involves bringing end-of-life vessels onto intertidal areas for dismantling, raising concerns about pollution containment, hazardous waste management and worker safety.
In a joint letter issued in September 2026, six organisations urged the European Commission to withdraw its proposal, arguing that beaching is incompatible with EU requirements relating to impermeable floors and effective pollution prevention.
In contrast, ECSA and other shipping associations have supported the proposal, arguing that approving qualified facilities outside Europe would expand global ship recycling capacity and provide additional options to accommodate the growing number of vessels approaching the end of their operational lives.
The debate centres on three major issues: the ability of beaching facilities to meet environmental and worker safety standards, the availability of sufficient compliant ship recycling capacity, and the consistent application of regulatory requirements to facilities within and outside Europe.
The discussion also comes in the wake of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which entered into force in June 2025. While the Convention establishes international standards for safe and environmentally sound ship recycling, the EU Ship Recycling Regulation imposes additional requirements, meaning that compliance with the Hong Kong Convention does not automatically qualify a facility for inclusion on the European List.
If approved, the inclusion of the two Indian yards would represent an important milestone for India’s ship recycling sector, while also bringing renewed attention to the environmental and safety standards governing the global ship recycling industry.