Most EU Ships Are Scrapped In South Asia Despite Sufficient European Recycling Capacity, Study Finds
Our take
The recent study highlighting the continued practice of EU-owned ships being scrapped in South Asia, despite the availability of European recycling capacity, underscores a critical tension between economic expediency and ethical responsibility within the maritime industry. The findings are particularly concerning given the documented risks associated with shipbreaking in countries like India, Pakistan, and Bangladesh, where labor standards and environmental protections are often inadequate. The tragic loss of 22 seafarers after a bulk carrier sank in the Bay of Bengal [22 Seafarers Missing After Ship Sailing From India To China With 72,000 Tonnes Of Iron Ore Sinks In Bay Of Bengal] serves as a stark reminder of the precarious conditions frequently faced by those involved in maritime transport, and the potential consequences of prioritizing cost reduction over safety and sustainability. Furthermore, the recent return of the remains of an Indian seafarer killed in a missile strike near Ukraine [Indian Seafarer Killed In Missile Strike On Ship Near Ukraine’s Odesa Port Returns Home After 34 Days] highlights the vulnerability of seafarers globally, a vulnerability exacerbated by the practices of substandard shipbreaking. The discovery of an empty lifeboat and distress beacon in the Bay of Bengal [Empty Lifeboat, Distress Beacon Found As Indian Coast Guard Searches For 22 Missing Crew In Bay Of Bengal] points to potential systemic issues and the urgent need for enhanced safety protocols.
The economic drivers behind this persistent practice are complex. Shipbreaking in South Asia is significantly cheaper due to lower labor costs, relaxed environmental regulations, and less stringent enforcement of safety protocols. This cost advantage incentivizes ship owners to bypass European facilities, even when they possess the technological capabilities to perform responsible recycling. The European Union’s Ship Recycling Regulation (EUTR) aims to address this by setting minimum standards for ship recycling facilities and prohibiting the import of ships scrapped in non-compliant yards. However, the EUTR's effectiveness is challenged by loopholes and difficulties in enforcement, particularly concerning vessels flagged in other jurisdictions. The current situation suggests that the regulation, while well-intentioned, is not sufficiently deterring the practice of exporting end-of-life vessels to regions with less stringent oversight, resulting in demonstrable human and environmental costs. A truly integrated data ecosystem, capable of tracking vessel lifecycles and enforcing regulatory compliance across international borders, would be a crucial step towards mitigating this problem.
Beyond the immediate ethical concerns of worker safety and environmental pollution, this trend has broader implications for the global maritime supply chain. The shipbreaking industry often involves hazardous materials, including asbestos, heavy metals, and persistent organic pollutants. Improper dismantling practices release these toxins into the environment, contaminating soil, water, and air, impacting local communities and ecosystems. Furthermore, the lack of transparency and accountability within the shipbreaking sector makes it difficult to accurately assess the full extent of the environmental and social damage. The pursuit of short-term economic gains at the expense of long-term sustainability and human well-being ultimately undermines the integrity of the entire maritime sector and its ability to contribute to a healthy ocean. Validated, longitudinal data on shipbreaking practices, coupled with calibrated enforcement mechanisms, are essential for fostering a more responsible and sustainable approach.
Ultimately, the continued reliance on substandard shipbreaking practices in South Asia represents a failure of global governance and corporate responsibility. The discrepancy between available European recycling capacity and the persistent export of end-of-life vessels highlights the need for a more robust and universally enforced regulatory framework. The question remains: how can the international community, including the EU, strengthen enforcement mechanisms, incentivize responsible ship recycling practices, and ensure that the dismantling of vessels does not come at the expense of human lives and environmental health? The development of real-time monitoring systems and the promotion of peer-reviewed best practices will be crucial in achieving a more equitable and sustainable future for the maritime industry.
The vast majority of EU-owned or EU-flagged ships are being scrapped under poor conditions in India, Pakistan and Bangladesh, while EU-located ship recycling facilities operate under capacity, a new study from the NGO Shipbreaking Platform and T&E shows. This is both an environmental scandal and a loss of high-quality materials for the EU economy, say the NGOs, who issued a report concluding that the EU has enough domestic capacity to recycle all EU-flagged and EU-owned vessels.
Between 2019 and 2025, 706 EU-flagged and/or EU-owned ships were dismantled worldwide. Only 22% were recycled in EU-located facilities, representing just 5% of the total tonnage. Nearly half were beached in India, Bangladesh and Pakistan – 66% of total tonnage. The remaining ships were dismantled mostly in Turkish shipbreaking yards.
This is not just an environmental issue. It is a profound failure of EU industrial strategy, prioritising strategic resilience and material autonomy on paper, while in reality letting valuable steel be lost to third markets. The EU speaks of reducing dependence on imported critical materials, yet, it lets its shipowners evade regulations and export millions of tonnes of recoverable steel that could be processed domestically. This is not strategic autonomy, says Benedetta Mantoan, Policy Manager at NGO Shipbreaking Platform
South Asian shipbreaking relies on beaching, with ships being dismantled directly on the beach with no containment. This practice leads to water and ground contamination through the discharge of hazardous materials. Additionally, dangerous working conditions due to operating on a tidal mudflat are also a major concern.
The EU Waste Shipment Regulation prohibits ships becoming waste in EU waters from being exported to a non-OECD country, while the EU Ship Recycling Regulation requires EU-flagged vessels to use an EU-approved facility. In reality, most of the EU-owned fleet continues to be scrapped in substandard yards in South Asia, with shipowners either reflagging their ships or fraudulently claiming to continue operations to evade waste export restrictions. As a result, the EU continues to export toxic waste in the form of end-of-life vessels. As many as 102 ships swapped their EU flag for another flag shortly before dismantling to avoid EU restrictions.
In July, the European Commission announced plans to add the first beaching ship recycling facilities to the EU’s approved list. This will make it easier to dump ships overseas, say the Shipbreaking Platform and T&E. EU-based yards operate under high environmental and labour standards. Approving substandard beaching yards would penalise responsible European industry and reward harmful practices that are effectively not approved in EU Member States.
In 2020, the year with the biggest number of ships dismantled worldwide, EU facilities had an overall recycling capacity of 2.1 million light displacement tonnes (LDT) while the total of EU-owned ships dismantled that year amounted to 1.4 million LDT. Over two-thirds of EU-owned tonnage was dismantled on beaches in India, Bangladesh and Pakistan. Every vessel beached could have been accommodated by a minimum of 6 to 8 EU yards.
Up to 95% of the weight of a ship can be recycled as high-quality scrap steel. In a previous report, the Shipbreaking Platform concluded that almost 12,000 EU-owned ships would reach end of life in the next decade, which could yield up to 12 million tonnes of steel yearly. Shipbreaking in Europe represents a major economic opportunity, says T&E.
Secondary steel production via electric arc furnaces using recycled scrap is one of the most effective pathways to decarbonise the sector. By outsourcing its valuable scrap, the EU is starving its own green steel transition of feedstock, says Benedetta Mantoan, Policy Manager at NGO Shipbreaking Platform.
Persisting policy gaps prevent the ship recycling from aligning with the strategic plans of the Union. Beaching, considered the most dangerous shipbreaking method, must be explicitly banned, not authorised based on shipowners’ false claims of insufficient EU capacities. The EU must align the reality with its declared circularity and decarbonisation pledges. Without closing gaps such as the re-flagging to flags of convenience, ambitious plans will be more of the Commission’s wishful thinking. Finally, the EU must continue its efforts to actively promote and support the best practices in the ship recycling sector to ensure a global level playing field.
The report is available under this link.
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