At Hong Kong Maritime Week, the IMO’s SENSREC Project hosted an event on 18 November to brief Hong Kong’s finance and investment community on the rising opportunities and urgent needs within the sustainable ship recycling sector. With the Hong Kong Convention set to enter into force in June 2025, stakeholders examined market trends, regulatory changes, and the financial potential of responsible recycling as the maritime industry prepares for a wave of end-of-life vessels.
Ship Recycling Needs Rise as the Hong Kong Convention Takes Effect
The event gathered participants from Norway, Bangladesh, Pakistan, BIMCO, the International Labour Organization (ILO), and Hong Kong’s banking sector to explore how the new regulatory landscape will reshape global ship recycling.
Expert panels emphasised that responsible recycling is key to supporting the circular Blue Economy. As a significant number of ships are expected to reach retirement in the coming years, environmentally sound recycling will enable the recovery of valuable materials while ensuring hazardous waste is properly managed.
Speakers also shared updates on South Asia where most global ship recycling takes place highlighting improvements and ongoing challenges in safety, environmental standards, and waste management.
Investment Potential and Infrastructure Needs in South Asia
Representatives from Bangladesh and Pakistan stressed the pressing need for investment in new technologies and support infrastructure. This includes developing better road networks and establishing Treatment, Storage and Disposal Facilities (TSDFs) to handle hazardous materials removed during ship dismantling.
Discussions reiterated that responsible ship recycling presents a strong investment opportunity. With the sector evolving under new global regulations, there is growing demand for funding to modernize facilities, improve worker safety, and build greener recycling operations.
The SENSREC event underscored that sustainable ship recycling is both a regulatory requirement and a strategic investment avenue. As the Hong Kong Convention takes effect in 2025, developing countries and their recycling yards will need enhanced capacity, technology, and infrastructure. Through initiatives like SENSREC, the IMO and Norway aim to support a just transition that strengthens environmental protection, safeguards workers, and helps the maritime industry move toward a greener future.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: IMO
