Ship recycling countries are seeking stronger investments, as demands on the industry are expected to rise significantly in coming years.
During Hong Kong Maritime Week in Hong Kong, China (17-23 November), IMO’s SENSREC project engaged members of the global banking and investment community to discuss the opportunity to contribute to the modernisation and sustainability of the sector.
The event, "From Waste to Wealth" (22 November), underscored the need for robust investments to ensure ship recycling yards meet international standards for operational safety, environmental protection and wellbeing of the workforce.
These requirements are outlined in the International Convention for the safe and environmentally sound recycling of ships (Hong Kong Convention), which will enter into force in June 2025.
However, in some developing countries only a limited number of yards have so far achieved the relevant certification under the Convention. Investments are therefore crucial to upgrading the sector’s infrastructural and technical capacity to meet increasing global demand.
The event highlighted the link between ship recycling and maritime decarbonisation, while showcasing success stories in developing countries.
Permanent Secretary for Transport and Logistics at the Hong Kong Special Administrative Region, Ms Mabel Chan, announced that Hong Kong will soon launch a programme of economic incentives for shipowners to boost ship efficiency and cut greenhouse gas emissions.
As international shipping strives to decarbonise by or around 2050, the demand for newer, greener and more efficient fleets worldwide will mean older ships would have to be recycled.
Deputy Secretary of the Ministry of Industries of Bangladesh, Ms. Sahela Akter, reiterated her country’s commitment to a more sustainable sector, adding that her government has modernised legislation to ensure ship recycling yards comply with the Hong Kong Convention.
She stated that Bangladesh has shown it is possible to transform its industry within 10 years, from one that was criticised for poor environmental performance and numerous accidents, to some yards being counted among best in the world.
The event was part of the SENSREC Project’s work to support developing countries in the implementation of the Hong Kong Convention. Launched in 2015 and initially focused on Bangladesh, the SENSREC project has recently expanded its support to Pakistan.
