As the drive to decarbonise shipping gains increasing momentum, and as incentives and pressure on shipowners to operate more efficient and greener ships mounts, a related spike in early retirement of ships difficult to decarbonise and which are losing favour in the market, may result.
Consequently, decarbonisation of shipping may drive a boom in ship disposal, says an article published on Lexology website.
Environmental concerns
When compared to sinking or abandonment of old ships, shipbreaking and recycling is by far the most environmentally-friendly and economically sound option, as it ensures proper management of hazardous material and the reuse of valuable resources such as steel, iron, aluminium and plastics. Unfortunately, only a small percentage of shipbreaking operations are handled in a safe and clean manner.
Shipbreaking is a heavy and hazardous industry that exposes workers and the environment to a number of risks, for instance workers are often required to work at height or in confined spaces, with little or no PPE, and ship structures contain numerous toxic materials such as asbestos, PCBs, oil residues, organic waste, heavy metals, and toxic paints.
In 2017, according to the NGO Shipbreaking Platform, 543 ships, representing 80 percent of the world’s end-of-life tonnage, were broken under rudimentary and sub-standard conditions on the beaches of Alang in India, Chittagong in Bangladesh and Gadani in Pakistan.
Sustainable ship recycling necessity
Transforming hazardous shipbreaking into sustainable ship recycling necessitates:
- Shipowners selling their ships to breakers that invest in their operations’ safety and environmental standards;
- Moving ship breaking away from beaches and onto quaysides and dry-docks in appropriate areas, with the ability to store and handle the waste in a safe manner; and
- Focusing on green ship design at the outset, reducing hazardous materials in newbuilds and minimising waste at the end-of-life stage by planning for future efficient dismantling.
Regulations overview
Ship recycling regulations have been implemented over time to negate the detrimental effects of ship dismantling and include the following regulations.
Basel Convention and The Basel Convention Ban Amendment
In 1989, the United Nations Environmental Program adopted the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, following numerous hazardous waste trafficking incidents, which came into force in 1992.
The Basel Convention requires ship wastes to be managed and disposed of in an environmentally friendly way and to minimise the transportation of such wastes. The Ban Amendment entered into force in December 2019 and prohibits the export of hazardous wastes from Organisation for Economic Cooperation and Development (OECD) countries and Liechtenstein, to all non-OECD countries.
Hong Kong Convention
The International Maritime Organization (IMO) Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) was adopted in May 2009.
Key requirements of the HKC are that ships carry an inventory of hazardous materials and ship recycling facilities provide a ship recycling plan. However, the HKC has yet to enter into force and will not do so until 24 months after ratification by 15 states, representing 40 percent of world merchant shipping by gross tonnage, have signed it. At present, these requirements have yet to be met.
European Union Waste Shipment Regulation
The European Union Waste Shipment Regulation (EC) No 1013/2006 (EU WSR) transposes the Basel Convention and the Basel Ban Amendment into European Union law. It imposes a set of controls for the shipment of waste within, to and from the EU and imposes a procedure for waste shipment depending on the shipment’s destination, the type of waste and manner in which the waste will be processed after shipment.
On 1 January 2021, in a move to bring an end to the export of plastic waste to third countries that lack the resources to manage that waste sustainably, the EU brought into force the EU Commission Delegated Regulation (EU) 2020/2174, amending the EU WSR to include plastic waste.
European Union Ship Recycling Regulation
The European Union Ship Recycling Regulation (EU) No 1257/2013 (EU SSR) entered into force on 30 December 2013 and as from 31 December 2020 the EU SRR is now fully implemented.
The EU SSR sets requirements for ship recycling facilities to ensure that ship dismantling is performed in an environmentally acceptable manner. It also restricts the use of hazardous materials on ships, and maintains a list of approved ship recycling facilities. While the EU SSR largely reflects the requirements of the HKC, it also includes additional safety, environmental and occupational health and safety standards that go beyond the HKC.
UK Ship Recycling Regulations
The UK Ship Recycling Regulations (UK SRR) give domestic effect to the EU SRR and apply to all UK ships, excluding ships of less than 500GT and UK ships operating throughout their life in UK waters only. If a UK ship operating throughout its life in UK waters only goes to a recycling facility in an EU member state, the EU-SRR will apply.
Ship recycling initiatives and the way forward
The Ship Recycling Transparency Initiative (SRTI) has been set up to enable shipowners to share data on ship recycling policies, to demonstrate a commitment to transparency and responsible ship recycling practices. Many shipowners and other shipping organisations have also become signatories to the Sustainable Shipping Initiative (SSI) which seeks to improve the overall sustainability of the shipping industry, including ship recycling transparency.
Shipowners have also begun to develop and implement green recycling policies and have looked to incorporate contractual provisions in ship sale agreements to ensure that a sale leads to the recycling of the ship in an environmentally safe way, thereby raising the bar for other shipowners and industry players to also implement and adhere to green ship recycling policies and practices.
Together with the regulatory framework, national and international enforcement of regulations, and the above-mentioned industry initiatives, has resulted in a heightened focus on ship recycling globally which has led to the scrutinising of existing ship recycling policies and practices.
Summary
- Decarbonise shipping gains increasing momentum, and as incentives and pressure on shipowners to operate more efficient and greener ships mounts
- When compared to sinking or abandonment of old ships, shipbreaking and recycling is by far the most environmentally friendly and economically sound option.
- Ship recycling regulations have been implemented over time to negate the detrimental effects of ship dismantling.
- Together with the regulatory framework, national and international enforcement of regulations, and the above mentioned industry initiatives, has resulted in a heightened focus on ship recycling globally.
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Source: lexology.com
