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European regulators face a decision that could expand a list of approved ship recycling sites, but a leading environmental watchdog is pushing back against the proposal. The European Commission is moving to add two Indian facilities to its official registry of compliant yards. The NGO Shipbreaking Platform argues that the proposed sites do not meet safety and environmental standards required by the EU Ship Recycling Regulation.
Shree Ram and YSI Recyclers operate using “beaching” methods. This process involves dismantling vessels by hand directly on tidal mudflats rather than on dry land with impermeable flooring. The NGO Shipbreaking Platform claims these methods violate the regulation and its UK equivalent. The group describes the facilities as ‘beaching yards’ that lack necessary containment measures.
The environmental group asserts that this type of dismantling creates unfair competition for EU and British recycling yards. They argue that these facilities use outdated practices that pose significant risks to workers and the environment.
The platform also highlighted the specific impact on the United Kingdom. The UK has a weak steel sector that increasingly relies on scrap metal as a secondary raw material. The group warned that high-quality scrap steel risks being diverted away from the UK to India. They noted that a large ship broken on a beach in India removes valuable material from the domestic market.
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According to the NGO Shipbreaking Platform, the EU List is meant to be a benchmark for best practice, not a tool that legitimizes greenwashing. They stated that a beach or tidal mudflat is not an acceptable place to recycle a ship, regardless of the location.
This situation highlights the tension between global recycling markets and local regulatory frameworks. While the Commission moves forward with its approval process, the public consultation period is scheduled to extend until August 30th. The watchdog is urging stakeholders to resist the inclusion of the two Indian facilities during this window.
Industry observers note that the financial incentives for shipowners to choose low-cost beaching operations remain strong. The NGO Shipbreaking Platform has previously documented hazardous conditions at these sites. The Commission’s decision will likely set a precedent for how environmental criteria are weighed against economic efficiency in the maritime industry.
Observers point to the potential for significant disruption in the market if the two new sites are added to the approved registry. The NGO Shipbreaking Platform contends that allowing these sites to operate would undermine the integrity of the EU Ship Recycling Regulation. The Commission has not yet announced a final decision on the application.
