Classification society DNV GL has launched Ship recycling – navigating a complex regulatory landscape, a new guidance paper to help shipowners understand a regulatory environment that is projected to become more complex in the near future
The paper focuses on shipyards not featured on the European list of approved shipyards and aims to give owners a better basis for decisions in the absence of reliable evidence of compliance outside EU schemes.
The paper sets out the main recycling options available to shipowners and the legal, reputational and financial risks each of these entail, providing a process that can help to assess whether an individual yard is likely to carry out recycling to an acceptable level in line with recognised regulations and standards. DNV GL also held a webinar in conjunction with the release of the paper.
DNV GL principal consultant Jannicke Eide-Fredriksen said “Recent cases have shown that without a clear awareness of the risks within the complex regulatory landscape that surrounds recycling, shipowners can find themselves facing major financial and opportunity losses.” He added “With this new guidance, DNV GL is working to support shipowners in their decisions, by setting out the standards involved and the many critical factors to consider, primarily when dealing with yards that are not included on the EU approved list.”
The EU Ship Recycling Regulation (EU SRR) applies to ships flying the flag of an EU member state, plus Norway and Iceland. As of 31 December 2018, large commercial seagoing vessels flying the flag of an EU member state may be recycled in recycling facilities included in the European List of 41 approved ship recycling facilities. However the list features no yards from Bangladesh, China, India and Pakistan which process 90% of the ships recycled globally.
With the IMO Hong Kong Convention not yet in force, strict enforcement of the EU SRR and the EU Waste Shipment Regulation (EU WSR) means shipowners must carefully plan the end of life of their vessels. Non-compliance may mean that owners incur financial penalties and possible criminal convictions, as DNV GL pointed out.
This month, DNV GL also issued a reminder to shipowners over the deadline for compliance with the Inventory of Hazardous Materials (IHM) regulation. Shipowners are urged not to treat upcoming IHM surveys as a formality as certifications and meanings may vary from region to region.
Ship recycling – navigating a complex regulatory landscape can be downloaded here.
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