EU ships scrapped in South Asia despite Europe's recycling capacity

A new study from the NGO Shipbreaking Platform and T&E reveals that the vast majority of EU-owned or EU-flagged ships are being scrapped in South Asia, specifically in countries like India, Pakistan, and Bangladesh, despite the EU having sufficient domestic recycling capacity. This situation not only poses significant environmental risks but also represents a loss of valuable materials for the European economy.

EU recycling capacity underutilized

According to the study, only 22% of EU-flagged and EU-owned ships were recycled in EU-located facilities between 2019 and 2025. This accounts for just 5% of the total tonnage of ships scrapped. In contrast, a staggering 66% of the total tonnage of EU ships were beached in South Asia, while the remaining 32% were dismantled in Turkey. The study highlights a major discrepancy between the EU's recycling capacity and the actual use of these facilities.

The NGO Shipbreaking Platform emphasizes that the EU's ship recycling facilities are operating under capacity, with more than enough capacity to handle the end-of-life vessels. Philippine Bernard, Policy Officer at the NGO, states, "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." (According to gCaptain)

Environmental and economic implications

The dismantling practices in South Asia, particularly in beaching yards, pose significant environmental and health risks. According to the study, beaching relies on direct dismantling on the beach without any containment, leading to water and ground contamination through the discharge of hazardous materials. Additionally, dangerous working conditions due to operating on a tidal mudflat are a major concern. (According to gCaptain)

Moreover, the study reveals that shipowners often reflag their ships or fraudulently claim to continue operations to evade waste export restrictions. Between 2019 and 2025, as many as 102 ships swapped their EU flag for another flag shortly before dismantling to avoid EU regulations. This practice not only compromises the effectiveness of the EU’s waste shipment regulations but also results in the continued export of toxic waste in the form of end-of-life vessels. (According to gCaptain)

Regulatory measures and implications

The EU’s Waste Shipment Regulation prohibits ships from becoming waste in EU waters and exporting them to non-OECD countries. Similarly, the EU Ship Recycling Regulation requires EU-flagged vessels to use EU-approved facilities. However, the study suggests that these regulations are being circumvented by shipowners, leading to the continued use of substandard yards in South Asia. (According to gCaptain)

Environmental groups are calling for stricter enforcement of these regulations and the use of domestic recycling facilities. Bernard asserts, "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." (According to gCaptain)

What this means for operators

For ship operators, the implications are clear. The current practice of sending EU ships to be scrapped in South Asia not only risks violating environmental and safety regulations but also misses out on the potential economic benefits of using domestic recycling facilities. To remain compliant and benefit from the strategic advantages of material autonomy, operators should consider engaging with EU-located ship recycling facilities. Additionally, there is a growing need for transparency and robust enforcement mechanisms to ensure that shipowners do not exploit regulatory loopholes. This could involve improved tracking and verification systems to prevent flag switching and ensure the use of approved facilities.

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