India’s efforts to secure European Union recognition for two ship recycling facilities in Alang, Gujarat, have suffered a setback after a majority of the European Parliament’s Committee on Environment, Climate and Food Safety voted against their proposed inclusion in the EU List of Ship Recycling Facilities.
The European Commission had proposed adding Shree Ram Vessel Scrap Pvt Ltd/Shree Ram Shipping Industries Pvt Ltd (Plot Nos. 78/81) and YSI Recyclers LLP (Plot No. 59) to the 16th edition of the list. The committee’s objection will now be put to a vote in the European Parliament’s plenary, expected by the end of November.
Opposing lawmakers argued that the beaching method, widely used in South Asian ship recycling yards, does not meet EU requirements for environmental protection and worker safety. They maintained that accepting such facilities would undermine the standards established under the EU Ship Recycling Regulation and create unfair competition for European recyclers.
However, major international shipping organisations, including BIMCO, the International Chamber of Shipping (ICS), INTERTANKO, INTERCARGO and the European Community Shipowners’ Associations (ECSA), have backed the inclusion of the two Alang facilities, citing extensive audits, infrastructure upgrades and compliance assessments against international standards.
BIMCO Secretary General and CEO David Loosley said Alang yards that have invested heavily in infrastructure and undergone repeated inspections and certification should be considered for EU recognition, noting that some facilities meet or even exceed EU standards.
Defending its proposal, the European Commission argued that the EU’s ship recycling capacity remains limited, with EU-based yards recycling only around 20 large vessels annually. With approximately 16,000 ships expected to require recycling over the next decade, it said sustainable facilities outside Europe would be essential to meet future demand.
The Commission also clarified that the EU regulation does not impose an outright ban on beaching. Instead, facilities must demonstrate compliance with stringent requirements covering worker safety, environmental protection and the control of hazardous material leakage, including in intertidal zones. It said the two Indian yards had made significant investments and operational changes to meet these requirements.
The two facilities were among the early Alang recyclers to upgrade their operations in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which entered into force on 26 June 2025.
Currently, 115 operational ship recycling yards in Alang are compliant with the Hong Kong Convention. Of these, 35 have applied for EU recognition, while six are undergoing compliance and approval procedures. The two yards had completed the required compliance process before the European Commission proposed their inclusion.
The outcome of the forthcoming plenary vote will be crucial for India’s efforts to gain access to the EU ship recycling market and strengthen Alang’s position as a globally recognised, environmentally compliant ship recycling hub.