EU Committee Votes 48-26 Against Two Indian Recycling Yards

The European Parliament’s Environment Committee voted 48-26, with five abstentions, on Wednesday against adding two Indian ship recycling yards to the EU list of approved facilities. The proposal covers Shree Ram Vessel Scrap and YSI Recyclers, both in Alang-Sosiya, Gujarat, which received preliminary Commission backing after inspections for EU Ship Recycling Regulation compliance. Approval would give owners of large EU-flagged commercial vessels their first listed Indian option for legally required end-of-life disposal.

What does EU-list approval mean for shipowners?

Since December 2018, large EU-flagged commercial vessels must recycle at facilities on the European List, regardless of where those yards operate. The latest adopted list, published in February, contained 41 facilities: 30 in Europe, 10 in Turkey and one in the United States. For owners facing vessel retirements, adding the Gujarat yards would expand access to South Asian capacity within the mandated system.

Shipping groups have backed that expansion, arguing approval should reflect each facility’s compliance rather than its location or recycling method. In an October 28 statement, European Shipowners | ECSA Secretary General Sotiris Raptis said: “The inclusion of the two Indian yards in the EU list is a long-awaited and very welcome step, which rewards investments made to meet EU standards.” The yards have invested heavily in infrastructure, worker safety and environmental management, according to the associations supporting them.

Why do environmental groups oppose beaching?

The dispute centers on beaching, which drives ships onto tidal shorelines before dismantling them. Opposing lawmakers argue that cutting vessels apart in intertidal areas makes oil, heavy metals and other hazardous materials difficult to contain, even where yards have invested in improved infrastructure and environmental controls. They also question downstream waste management, noting that local re-rolling mills have not been assessed against European industrial emissions standards.

In September, EUROFER, IndustriAll Europe, the European Environmental Bureau, Recycling Europe, Transport & Environment and the Shipbreaking Platform urged the Commission to withdraw the proposal. The coalition said beaching cannot meet European pollution-containment requirements and warned that approval could undermine European yards’ investments in stricter environmental and worker-safety standards. They also argue that end-of-life ships supply scrap steel and other secondary raw materials that should be recovered within Europe.

The Shipbreaking Platform welcomed Wednesday’s vote, saying approval would weaken protections established under EU law. Its executive director, Ingvild Jenssen, said: “Today’s vote in the European Parliament sends a strong political message to the European Commission.” Recycling Europe also welcomed the decision, saying approval without conclusive evidence of compliance would put European recyclers at a competitive disadvantage.

Where do shipping and environmental groups diverge?

Months of lobbying brought shipping associations, environmental organizations, European steelmakers and recyclers into opposing camps over beaching and compliance. In September, BIMCO, European Shipowners | ECSA, the International Chamber of Shipping, INTERCARGO, INTERTANKO and the World Shipping Council welcomed the Commission’s proposal. On September 17, eight shipping organizations, including CLIA and INTERFERRY, sent a joint letter to EU environment and transport ministers urging member states to approve both yards. They warned that rejecting yards found compliant through the Commission’s inspection process would undermine the credibility of the EU approval system.

Is there enough approved recycling capacity?

Shipping groups warn of a shortage of suitable European List capacity as more vessels approach the end of their operating lives. Environmental campaigners point to more than 2 million light displacement tonnes of combined annual capacity at facilities already approved by the EU. They say that pool can handle recent recycling volumes involving EU-flagged and EU-owned ships, contradicting the shipping industry’s capacity warning. The Commission has acknowledged weaknesses in the existing system, including shipowners reflagging vessels outside the EU shortly before recycling to avoid its requirements.

More than 95% of global ship recycling takes place in Bangladesh, India, Pakistan and Turkey, according to shipping associations. All four countries are parties to the International Maritime Organization’s Hong Kong Convention, which entered into force on June 26, 2025, setting international requirements for safe and environmentally sound ship recycling. The EU regulation goes further in certain areas, requiring large EU-flagged vessels to use the European List wherever they recycle.

What happens after the committee vote?

Wednesday’s objection did not amount to a final rejection of the two yards. Green lawmaker Sara Matthieu introduced it with support from representatives of other political groups, and the full Parliament is expected to consider it later in November. Even if Parliament adopts the objection, it cannot legally require the Commission to withdraw the proposal; EU member states have the final say.

The late-November plenary debate and member-state decisions will set the direction of the EU list, with access to South Asian recycling capacity still unresolved. The policy trajectory will hinge on whether the Commission can defend its inspection findings against the environmental objections over beaching and downstream emissions.