Hong Kong Convention Ratified: What It Means for the Future of Ship Recycling
On 26 June 2023, Bangladesh and Liberia officially ratified the International Maritime Organization’s Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). This long-anticipated move clears the final hurdle required for the Convention to come into force.
The primary objective of the HKC is to ensure that ships, once they reach the end of their operational life, are recycled without posing risks to human health, worker safety, or the environment.
Entry into Force: A Milestone Achieved
Although the HKC was adopted back in May 2009, it could only enter into force once three strict conditions were met:
- Ratification by at least 15 countries
- Coverage of 40% of global merchant shipping tonnage
- Recycling capacity equal to at least 3% of the combined gross tonnage of the ratifying states
With Bangladesh and Liberia joining the Convention, all these criteria have finally been satisfied. As a result, the HKC will officially enter into force on 26 June 2025.
The Convention will apply to:
- Ships of 500 gross tonnes (GT) and above engaged in international trade
- Ship recycling facilities located within the jurisdiction of countries that are parties to the Convention
Warships and vessels operating exclusively within domestic waters are excluded.
Why This Matters Now
The ratification comes at a critical time. According to BIMCO, over 15,000 ships, representing more than 600 million tonnes of deadweight, are expected to be recycled between 2023 and 2032. This figure is more than double the recycling volume seen in the previous decade.
Given the scale of upcoming ship retirements, the absence of a globally applicable recycling framework had been a growing concern within the maritime industry. The HKC is therefore widely seen as a step in the right direction.
The Role of the Basel Convention
Before the HKC’s ratification, IMO member states were encouraged to rely on the Basel Convention, which has been in force since 1992, along with its Ban Amendment effective from December 2019.
While the Basel Convention does not specifically address ship recycling, it regulates the cross-border movement of hazardous waste. Once a shipowner decides to scrap a vessel, the ship may be classified as hazardous waste under the Convention.
The Ban Amendment restricts the export of hazardous waste from OECD countries to non-OECD countries, unless special agreements are in place. This was based on concerns that many non-OECD countries lacked adequate facilities to manage hazardous materials safely.
Although Basel promotes the “polluter pays” principle and supports the adoption of the HKC, applying it effectively to end-of-life ships has proven difficult. The main challenge lies in determining when a ship legally becomes “waste”, a key requirement for Basel to apply.
EU Waste Shipment Regulation (EU WSR)
Within the European Union, the Basel Convention was implemented through the EU Waste Shipment Regulation, effective from July 2007.
The EU WSR applies to all ships above 500 GT in EU and EEA waters, regardless of flag. However, similar to Basel, enforcement challenges persist—especially in identifying the point at which a ship becomes waste.
If a decision to recycle a ship is made before it leaves EU waters, the vessel may only be recycled in an OECD country. Both the EU WSR and related regulations are currently under review by the EU.
EU Ship Recycling Regulation (EU SRR)
In 2013, the EU introduced the EU Ship Recycling Regulation (EU SRR) to align European law with HKC standards. Although it entered into force in 2013, full implementation began after 31 December 2018.
The EU SRR aims to:
- Improve safety and working conditions
- Protect human health and the marine environment
- Ensure environmentally sound handling of hazardous materials
Like the HKC, it requires ships to maintain an Inventory of Hazardous Materials (IHM).
Scope of the EU SRR
The Regulation applies to:
- EU-flagged ships
- Non-EU ships over 500 GT calling at EU ports
Excluded vessels include warships and ships operating solely within their flag state’s waters.
Ships covered by the EU SRR can only be recycled at facilities listed on the European List of approved recycling yards.
Challenges Faced by the EU SRR
Despite its strong objectives, the EU SRR has faced several practical limitations:
- Most yards on the European List lack capacity to recycle large ocean-going vessels
- Many European-owned ships are registered under non-EU flags
- No large-capacity yards from South Asia are currently on the European List
- Shipowners often receive significantly higher prices for scrapping ships in India, Pakistan, or Bangladesh
- The Regulation can be bypassed through re-flagging vessels before recycling
- Ongoing uncertainty over when a ship officially becomes waste complicates enforcement
The EU is currently reassessing the Regulation to address these issues.
Conclusion: Are All Concerns Resolved?
After more than a decade of waiting, the HKC’s ratification is undoubtedly a major milestone. However, it does not eliminate all challenges surrounding ship recycling.
Critics argue that the HKC falls short in several areas. Unlike the EU SRR, it does not prohibit beaching, a common practice in South Asia associated with environmental and safety risks. Enforcement responsibility lies with flag states and recycling states, raising concerns about compliance—particularly when ships are re-flagged shortly before scrapping.
Since the Convention’s adoption in 2009, global priorities have evolved significantly. The introduction of the UN Sustainable Development Goals, increased focus on circular economy principles, and greater awareness of worker welfare have led many stakeholders to question whether HKC standards are still sufficient.
As a result, some experts and environmental groups are calling for updates or amendments to the Convention before it comes into force in 2025.
How the HKC will ultimately interact with existing EU regulations also remains to be seen.
The situation continues to evolve, and further developments in ship recycling regulation will be closely watched by industry stakeholders worldwide
