Current EU regulation requires sound recycling for EU flagged ships. But this criterion can easily be circumvented by shipowners through timely re-flagging to a non-EU flag.
To fix this loophole, a report by Ecorys, class society DNV GL and the Erasmus University School of Law suggests that ships, regardless of their flag, should not be allowed to call at any EU port without a ship recycling license, a European Commission report has recommended. It looks into the possibility of introducing a financial incentive to enhance safe and environmentally sound ship recycling.
Ship recycling license fees would be used to cover the cost-gap between substandard and sustainable end-of-life shipmanagement. The amount accumulated during the operational life of the vessel would be set aside for the ship and only paid back to the last owner of the vessel as a premium, if the ship is recycled in a sustainable facility approved by the EU.
“We call on the European Commission to follow-up this report with a legislative proposal. The effective implementation of European environmental policies has been dependent on making the ‘polluter pay’. If the EU is serious about its commitment to sustainable ship recycling, all shipowners trading in Europe need to be held financially liable,” said Stephane Arditi, products & waste policy manager at the European Environmental Bureau.
The 2013 EU Ship Recycling Regulation requires all vessels sailing under an EU flag to use an approved ship recycling facility. A major shortcoming of the Regulation, however, is that shipowners can circumvent the law by simply flagging out to a non-EU flag.
EU owner’s accounted for around one third of the end-of-life tonnage beached in substandard yards in Bangladesh, India and Pakistan, the report claimed. “EU shipping companies should not circumvent EU environmental laws and not utilise practices that would never be allowed in Europe. EU flag-neutral measures, which apply equally to all ships calling at EU ports, are necessary to increase environmental protection,” said Sotiris Raptis, shipping and aviation officer at EU Transport and Environment.
European ports are not opposing the ‘ship recycling license’ and Sea Europe, Europe’s shipyard and maritime equipment association, has expressed enthusiasm towards ensuring better implementation of the Ship Recycling Regulation. Last month it called for support to enhance ship recycling capacity and R&D towards more cost effective solutions in Europe.
“The upcoming EU list of approved ship recycling facilities will function as an important market differentiator for yards that have already invested in proper occupational health & safety and environmental standards. The use of the EU listed facilities will however depend on the introduction of an effective financial incentive that forces irresponsible shipowners towards better practices,” said Ingvild Jenssen, policy director at the NGO Shipbreaking Platform.
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Source: European Commission