The debate over whether Indian shipbreaking yards using the beaching method should be included under European environmental regulations is growing. Steel producers, recyclers, trade unions, and environmental organizations are now urging the European Commission to withdraw its proposal.
A coalition, including the NGO Shipbreaking Platform, EUROFER, IndustriAll Europe, the European Environmental Bureau, Recycling Europe, and Transport & Environment, has sent a joint letter to European Commissioners Jessika Roswall and Stéphane Séjourné. They oppose the proposal to add two facilities in Alang-Sosiya, Gujarat, to the European List of Ship Recycling Facilities.
These facilities—Shree Ram Vessel Scrap Pvt. Ltd./Shree Ram Shipping Industries Pvt. Ltd. and YSI Recyclers LLP—would be the first Indian yards approved under the EU system.
Both use the beaching technique, which involves bringing ships onto intertidal areas for dismantling. This method has sparked a heated debate about whether improved South Asian recycling yards can meet European standards.
The coalition insists that they cannot.
“This method is not allowed in any EU Member State,” the groups stated, explaining that dismantling ships on tidal mudflats makes it challenging to prevent oil and hazardous materials from reaching nearby soil, water, and marine ecosystems.
They highlighted a heavy fuel oil spill at another Alang yard earlier this year as proof of the difficulties in managing pollution when dismantling happens in intertidal zones.
The opposition isn't limited to environmental groups. EUROFER represents Europe’s steel industry, while Recycling Europe encompasses companies across the European recycling sector.
Their letter warns that approving Indian beaching yards would disadvantage European facilities that have invested in stricter environmental, worker safety, and waste management protocols.
The coalition connects this issue to Europe's broader industrial policy, asserting that end-of-life ships are a crucial source of scrap steel and other secondary materials. They advocate for more recycling capacity to remain in Europe.
They are urging the Commission to reject the two Indian facilities, develop guidelines that exclude beaching from the EU Ship Recycling Regulation, close loopholes allowing European-owned ships to change flags before recycling, and promote a global beaching ban through the International Maritime Organization.
This pushback follows a contrasting stance from major shipping associations just weeks prior.
As reported by gCaptain earlier this month, organizations like BIMCO, European Shipowners | ECSA, the International Chamber of Shipping, INTERCARGO, INTERTANKO, and the World Shipping Council supported the Commission’s proposal. They argue that approvals should be based on the performance of individual facilities rather than their geographical location or recycling method.
The shipping industry groups claim the two yards have made significant investments in infrastructure, safety systems, and environmental management since the adoption of the IMO’s Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships.
The lobbying efforts have intensified.
On September 17, eight shipping organizations—including BIMCO, CLIA, European Shipowners | ECSA, ICS, INTERCARGO, INTERFERRY, INTERTANKO, and the World Shipping Council—sent a letter to EU environment and transport ministers, urging member states to approve the yards.
“Inclusion on the European List should depend solely on whether a facility meets the EU Ship Recycling Regulation’s safety and environmental standards, based on objective assessment and inspection,” the shipping groups stated.
They emphasize that the European Commission’s inspection process determined that both facilities meet EU requirements. They caution that rejecting them despite this evidence could undermine the system's credibility.
Furthermore, they highlight a growing shortage of approved recycling capacity in Europe as more ships approach the end of their operational life.
This disagreement raises a crucial question regarding the EU’s ship recycling regulations: should the beaching method disqualify yards, or can individual yards still comply with European environmental and safety standards while using this method?
This issue has gained even more importance since the IMO’s Hong Kong Convention came into force on June 26, 2025, establishing global standards for safe and environmentally friendly ship recycling. Countries like India, Bangladesh, Pakistan, and Türkiye, which together hold the majority of ship recycling capacity, are signatories to the convention.
Under the EU Ship Recycling Regulation, large vessels registered under an EU member-state flag can only be dismantled at facilities listed on the European List. These facilities, whether inside or outside the EU, must meet rigorous requirements regarding worker safety and environmental protection.
Thus, adding the two Alang yards would not only increase available recycling capacity but also determine if upgraded South Asian beaching facilities can meet the EU regulatory framework that has, until now, kept them out.