EU Proposes First-Ever Inclusion Of Two Indian Ship Recycling Yards In European List

New Delhi, Aug 22 (KNN) The European Commission has proposed adding two Indian ship recycling facilities to the European List of Ship Recycling Facilities, marking the first time Indian yards have been recommended for inclusion under the European Union’s Ship Recycling Regulation.

The proposed facilities are YSI Recyclers LLP and Shree Ram Vessel Scrap Pvt Ltd, both located in Gujarat’s Alang ship recycling cluster, one of the world’s largest shipbreaking hubs.

According to the draft decision, the Commission assessed information submitted by the facilities as well as additional evidence collected independently and found that both yards demonstrated compliance with the EU regulation’s environmental, safety, technical and governance requirements.

EU Opens Proposal for Public Feedback
The draft act, published on July 22, is open for public feedback until midnight Brussels time on August 30, 2026. The Commission said feedback received during the consultation will be considered before the proposal is finalised.

The proposed 16th edition of the European List would also remove four facilities located in France, Norway and Turkey.

Indian Yards Could Enter EU Ship Recycling Regime
If approved, the move would end the exclusion of South Asian ship recycling yards from the EU regime over the past decade. Under the regulation, EU-flagged vessels sent for demolition must be recycled at facilities included on the European List.

The proposal follows significant investments by Indian ship recycling facilities to improve environmental and safety standards.

More than 110 Indian yards currently hold a Hong Kong Convention Statement of Compliance issued by members of the International Association of Classification Societies, while more than 30 facilities have reportedly applied for EU approval.

Industry Welcomes Proposed Inclusion
Industry bodies welcomed the proposal, describing it as a step towards a more objective and performance-based approach to ship recycling.

BIMCO said the move was positive, while European Shipowners’ Secretary General Sotiris Raptis termed it long-awaited and said it recognised investments made by Indian yards to meet EU standards.

Simon Bergulf, Vice President, Environment and Climate, the World Shipping Council, said the proposed inclusion represented an important milestone following substantial investments by the yards to address findings from earlier European Commission inspections.

Alang Cluster Could Gain Global Recognition
The decision could strengthen confidence in India’s ship recycling industry, particularly the Alang cluster, where facilities have invested significantly in aligning operations with international standards following the entry into force of the Hong Kong International Convention in June 2025.

The proposed inclusion could also pave the way for more Indian facilities to join the European List in future updates, potentially strengthening India’s position in sustainable ship recycling.

(KNN Bureau)