Major international shipping organisations have urged the European Union to approve the inclusion of two Indian ship recycling facilities on the European List of Ship Recycling Facilities, saying the move would help address a growing shortage of compliant recycling capacity.
BIMCO, ECSA European Shipowners, the International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO and the World Shipping Council (WSC) issued a joint statement welcoming the European Commission’s proposal to add the two Indian facilities to the updated EU list.
Two Alang yards proposed
The European Commission has proposed adding Shree Ram Vessel Scrap Pvt Ltd/Shree Ram Shipping Industries Pvt Ltd and YSI Recyclers LLP, both located in Alang-Sosiya, Gujarat.
The Commission’s assessment found that the two facilities comply with the safety and environmental requirements under the EU Ship Recycling Regulation (EU SRR), making them eligible for inclusion on the European List.
If formally approved, the facilities would become the first Indian and South Asian ship recycling yards to enter the EU-approved list.
Industry highlights capacity concerns
The shipping groups said the proposed inclusion represents an important step towards addressing a structural shortage of recycling capacity on the European List.
They expect the number of vessels reaching the end of their operating lives to increase significantly over the coming decade. Expanding the list to include compliant facilities outside Europe would therefore provide shipowners with greater access to recycling capacity while supporting the objectives of the EU regulation.
The groups also argued that eligibility should be based on whether a facility meets the EU SRR’s safety and environmental requirements, determined through objective assessments and inspections.
Debate over beaching method
The proposal has nevertheless triggered opposition from environmental organisations because both Indian facilities use the beaching method, in which ships are brought onto intertidal areas for dismantling.
Environmental campaigners argue that allowing beaching yards onto the EU list could undermine the bloc’s environmental objectives and create different standards for European and non-European recycling facilities.
The shipping industry, however, points to substantial investment made by the Indian yards in infrastructure, worker safety and environmental management. It says these upgrades have enabled the facilities to meet the relevant EU and Hong Kong Convention requirements.
India strengthens global recycling position
India has emerged as a major global ship recycling centre, with Alang in Gujarat accounting for a significant share of the country’s recycling activity.
According to the Indian government, India’s share of global ship recycling increased from 30.1% in 2024 to 35.4% in 2025. Indian yards recycled around 2.99 million gross tonnes of ships in 2025, nearly 60% more than the previous year. More than 30 Indian yards have also sought recognition under the EU framework.
The European Commission’s proposal could therefore mark an important change in the relationship between the EU and India’s ship recycling industry, potentially giving EU-flagged vessels greater access to established recycling capacity in Alang while raising the profile of Indian yards in the international market.
The proposal is now moving through the EU approval process, with member states expected to consider the addition as part of the updated European List.