OEWG promotes clarity in ship recycling regulation, but key issues remain

According to BIMCO, at the latest meeting of the Open-ended Working Group on the Basel Convention (OEWG), held from June 23 to 26, further progress was made in efforts to clarify the international legal framework governing ship recycling, although delegates were unable to reach final conclusions on several key implementation issues.

Discussions focused on the relationship between the Basel Convention and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). Parties did not support the simultaneous application of both conventions to decommissioned ships, which many industry participants view as an important step towards reducing regulatory overlap.

Avoiding a dual regulatory structure is considered significant, as overlapping requirements can create legal uncertainty, operational inefficiencies, and additional compliance burdens for shipowners and recycling facilities.

Despite broad agreement that greater legal certainty is needed, delegates were unable to reach consensus on how overlapping obligations between the two conventions should be implemented in practice.

The entry into force of the HKC has been described as an important milestone for the global ship recycling sector, establishing the first comprehensive international legal framework specifically designed for ships. However, the continued application of the Basel Convention, which was originally developed to regulate the transboundary movement of hazardous waste, continues to raise legal and practical questions when applied to internationally trading ships.

As ship recycling is a global industry, stakeholders continue to call for a harmonized and predictable regulatory framework that supports safe, environmentally sound, and efficient recycling practices.

Delegations noted several unresolved issues requiring further clarification, including:

• The impact on regulatory compliance;
• The application of standards and their enforcement;
• The ability of shipowners to recycle ships at authorized facilities located in HKC member states.

The ship recycling sector has undergone significant changes in recent years, with many businesses, particularly in South Asia, modernizing infrastructure and operational standards to comply with HKC requirements.

Transparency, third-party verification, and improved safety and environmental practices are becoming increasingly the norm. It is important that regulatory changes support this progress rather than undermine it.

Stakeholders continue to advocate for measures that would:

• Facilitate safe recycling;
• Simplify compliance;
• Ensure predictability in the regulatory environment.

Discussions among governments, international organizations, and industry participants are expected to continue as progress is made towards a more coherent global regulatory framework.