NGO Shipbreaking Platform

The Telegraph – Hundreds wave goodbye to HMS Ark Royal

Shipbreaking — Mon, 20 May 2013 06:49:36 +0000

20 May 2013 - Hundreds of people have turned out to wave goodbye to the Royal Navy’s former flagship HMS Ark Royal as it was towed away to be scrapped.

The aircraft carrier, which was formally decommissioned in 2011, is being taken to Turkey where it will be dismantled by ship recycling firm Leyal.

People lined the harbour walls at Portsmouth, Hampshire, to catch a final glimpse of the warship as it left its home base.

A flotilla of small boats sailed with the Ark Royal as it was pulled by tug boats from the harbour. The tugs sounded their horns which echoed off the harbour walls as the crowds, some waving flags, stood in silence as the huge ship sailed past.

Among those who turned out was former crew member John Mayer. The 47-year-old former stores assistant from Fareham said: “It’s a very emotional day, it’s great to see so many people.

“People in Portsmouth always turn up to these things, it shows how much pride people have in her.”

He added: “I was one of the first people to serve on board the Ark Royal after she was built. I was 17/18 at the time and it was quite emotional then. She was a fantastic, iconic ship.”

On the decision to scrap it, he added: “I thought it was awful, I think she should have been turned into a museum, it would have been fantastic.”

Local resident Barrie Anderson, 70, said: “It’s a very sad day.”

The 22,000 tonne carrier was sold as part of a £2.9 million deal following the 2010 strategic defence review which led to the ship facing the axe five years early and the Harrier jets being sold for spares to the USA.

The decision to scrap the Ark Royal has left the UK without a fully-functioning aircraft carrier for a total of nearly 10 years until the next generation of carriers come into service.

A Royal Navy spokesman said: “Ark Royal, like her sister ships, served this country with great distinction.

“Retiring her five years earlier than planned was a difficult decision but it was the right one that, combined with her sale, has saved over a hundred million pounds.

“A decommissioning ceremony was held in March 2011 to pay tribute to her 31 years’ service with the Royal Navy.”

Alternative plans for the Ark Royal, including turning it into a diving wreck, a floating casino off Hong Kong, a heliport for London and a nightclub and school in China were rejected by the Ministry of Defence as “not feasible or appropriate”.

The Ark Royal was named by the Queen Mother and entered service in 1981.

It served in the Bosnian war and also sailed to the Persian Gulf for the invasion of Iraq in 2003 and was given a hero’s welcome when it returned to Portsmouth.

Tradewinds – EU beaching ban ‘could scupper global standards’

Shipbreaking — Wed, 08 May 2013 14:49:11 +0000

(Written by Geoff Garfield)

8 May 2013 - A former head of shiprecycling at the IMO insists proposed tougher regulations on European scrapping could kill off the Hong Kong Convention and its aims at improving standards at scrap yards on the Indian subcontinent

Nikos Mikelis, the former shiprecycling chief at the International Maritime Organisation (IMO), warns that worldwide attempts to raise vessel-recycling standards could soon be scuppered by a European ban on beaching.

Mikelis fears that the still-to-be-ratified Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is in jeopardy if a sequence of meetings beginning this week in Brussels sees Europe introduce tougher, unilateral measures.

“The Hong Kong Convention without Europe is useless because it was developed through the efforts primarily of European countries, as well as Norway and Japan,” Mikelis told TradeWinds. “These were the main drivers.”

So-called “trilogues”, discussions involving the European Parliament and European Council, with the European Commission (EC) effectively as mediator, were scheduled for this week, as well as next Friday and 27 May.

The European Parliament has already voted in favour of measures proposed by rapporteur and Swedish Green Party politician Carl Schlyter that include banning the beaching of ships for demolition and fines for European-flag owners who flout the proposed regulation.

If such a ban enters into force, these owners would be forced to use only European Union (EU)-approved recycling yards, vastly restricting their choice as the huge majority of ships globally currently end their lives on beaches in India, Bangladesh and Pakistan.

Mikelis, whose new roles include advising cash buyer GMS on responsible shiprecycling, says he is concerned that those Indian subcontinent countries will consider themselves effectively “banned” by Europe and consequently would see no need to ratify the Hong Kong Convention.

“If that happens, then the convention is dead,” said Mikelis.

No longer would it be possible to satisfy the entry into force conditions that requires ratification by at least one of the two major scrapping nations in south Asia.

‘Cuts out the key nations’

“Also, the spirit of the convention would not be met,” Mikelis said. “It was never designed to control standards in China and Turkey [which do not practise beaching]. It was designed to raise standards in the sub-continent looking 20 years ahead from now. The stupid thing is you cut out the very people you want to upgrade.”

He accuses anti-beaching advocates of lacking “joined-up thinking”, while pedalling slogans.

Mikelis says the Swedish Green Party has close relations with anti-beaching lobbyists Greenpeace and the NGO Shipbreaking Platform — the latter he accuses of wanting “continuous argument and chaos”.

As for the European Parliament, it had not “taken the trouble” to investigate how shipping works and why the Basel Convention on the transboundary movement of hazardous waste had not worked for ships.

Is “castrating” the Hong Kong Convention a clever move?” asked Mikelis.

Schlyter drafted the European Parliament’s environment committee report on shiprecycling, which also proposed a levy on ships using EU ports. But the Strasbourg assembly rejected that element last month. It was aimed at funding the safe scrapping of vessels.

Schlyter argues that most ships are being scrapped illegally in contravention of Basel. He claims a lot of misinformation was circulated by the maritime sector that resulted in the fund plan being defeated by a narrow 299 votes to 292, with 21 abstensions.

There is no indication that the European Council has so far veered from its position of accepting beaching. It is said to support the entry into force of the Hong Kong Convention, although concerns linger within the EC about the time that could take and the bulge of ships now heading for beaches. The EC is prepared to see vessels demolished in non-OECD countries, provided facilities are authorised by Europe.

“I would be gutted if the Hong Kong Convention sits and gathers dust,” concluded Mikelis.

“I know the thing works and it works in a way that means least pain for all parties. It brings improvements where it is needed and it is gradual.”

Tradewinds – Polembros left with just one vintage bulker after sale

Shipbreaking — Wed, 08 May 2013 14:47:13 +0000

(Written by Trond Lillestolen)

8 May 2013 - Greek owner Polembros Shipping was at one time known for operating a lot of vintage vessels but it has now sold almost all its ships that are 20 years or older.

On the bulker side, the company has now disposed of the 149,000-dwt Greek Warrior (built 1990), leaving it with just one bulker older than 20 years.

The Greek Warrior has gone for demoliton to Bangladesh for $450 per ldt or $8.3m. Polembros bought the ship as La Paloma from K Line in March 2009 for just $7.3m. The vessel was then due for special survey.

Earlier this year, Polembros sold two other bulkers for demolition — the 183,000-dwt Leonidas Warrior (built 1978) and the 149,000-dwt Keros Warrior (built 1989).

The company still has the 150,000-dwt bulker Naxos Warrior (built 1990) in its fleet but that ship is understood to be in layup.

Polembros takes delivery this year of 10 bulkers of 205,000 dwt each from Chinese shipyards.

Also on the capesize front, China’s Sea Star Ships has sold the 151,000-dwt bulker Glory Fujian (built 1991). It is also heading for Bangladesh after having been sold for $440 per ldt or $7.8m.

The owner bought the ship as Iron Brothers for $19.5m in December 2010. Sea Star has three other bulkers of more than 20 years old.

These two sales mean that at least 24 capesizes or larger bulkers have been sold for scrap this year.

In the panamax segment, China Navigation has sold the 64,000-dwt bulker Erawan (built 1982).

The ship is going for green recycling in China after being sold for $382 per ldt or $4.6m. The company bought it as Camarina in 1999 for just $3.7m.

China Navigation has one handysize and four feederships trading and has eight 39,000-dwt bulkers on order at domestic Chengxi Shipyard. At least 26 panamaxes have been sold for scrap this year.

The 45,000-dwt open-hatch bulker Mascot (ex-Hoegh Mascot, built 1977) has been sold to India. The ship fetched $450 per ldt or $6m.

The 3,007-teu containership MSC Scotland (built 1992) has been sold to India for $450 per ldt or $6.7m. The 3,017-teu Lima (built 1994 ex-Hanjin Lima) has also gone to India for the same price per ldt.

Stena Line is understood to have sold the 19,600-gt ferry Stena Voyager (built 1996). The ship is set for demolition in Landskrona, Sweden, but the details are still unclear.

Euractiv – EU under pressure to toughen ship recycling regulation

Shipbreaking — Fri, 03 May 2013 11:05:06 +0000

(Written by Timothy Spence)

3 May 2013 - In the Bangladesh port city of Chittagong, activists want the EU to get tough on the booming ship recycling industry that has become notorious for its poor labour and environmental safety records. New EU legislation is already in the making and could be finalised in June.

Negotiators from the European Parliament, Commission and Council are due to meet on Tuesday (7 May) in the first round of talks aimed at hammering out a regulation on the scrapping of old ships – many of which end up in South Asia for dismantling and recycling.

The Bangladesh industry has long been the target of labour rights campaigners and environmental lawyers. Today, business is booming, buoyed by a surplus of ocean-going vessels and home-grown demand for raw materials.

“At the rate ship breaking is going on in the ship-breaking yards, those workers are working like machines, they are dying every day and there are massive explosions, accidents and injuries,” said Muhammad Ali Shahin, the Bangladesh coordinator for the Shipbreaking Platform, a Brussels-based campaign group.

“That’s a very common thing of the industry because there is no safety, no precaution, no training and no care for the workers,” Shahin said in telephone interview from Chittagong, one of the busiest ship dismantling areas in South Asia.

Shahin said as many as 20 workers were killed on the job last year, but the human toll is believed to be much higher because official figures do not count the long-term illnesses suffered by workers handling asbestos and other toxins without safe disposal equipment of facilities.

Globally, some 1,300 ocean-going vessels were sent for recycling in 2012, 838 of which ended up in India, Bangladesh and Pakistan. More than 300 originated from EU countries, according to data collected by the Shipbreaking Platform.

Shipping tax divides Parliament

The European Parliament on 18 April approved legislation that would put the EU in line with a global agreement on the safe dismantling of ships, known as the Hong Kong Convention, which was adopted by delegates to the International Maritime Organization (IMO) in 2009 but has not yet been ratified.

The EU regulation would be obligatory for all EU states. It includes a ban on beaching, or parking vessels in coastal areas for dismantling, and requires the EU to monitor overseas facilities handling the recycling of European vessels.

While the overall legislation had overwhelming support in the Parliament, there was a different reception for a proposal to impose a tax on all ships entering EU ports to help finance EU-approved recycling facilities in third countries. The tax, backed by Swedish MEP Carl Schlyter (Greens), was defeated by a narrow vote, 299-292, though the Parliament said the levy should be considered in future.

The differences must now be hammered out by the EU’s three-decisionmaking branches over the next month.

Pressure groups are already lining up, with campaign organisations like the Shipbreaking Platform calling for the restoration of the tax, and the shipping industry pressing for a reversal of some obligations approved by MEPs.

Shippers say battle isn’t over

“The battle is still far from over,” said Simon Bennett, director of external relations for the International Chamber of Shipping in London, which opposes provisions that would allow EU inspections of overseas recycling facilities and the ban on beaching of end-of-life vessels.

The chamber contends that the Hong Kong Convention on ship breaking addresses labour safety and environmental protections and that the legislation approved by MEPs would put the UN ratification process are risk. The convention, if ratified, would be overseen by the International Maritime Organisation, or IMO.

“It would be extremely difficult for the EU members states to ratify the IMO convention” if the EU regulation is approved, Bennett said, adding that China, India and others “would not ratify it if the EU doesn’t and that would mean the end of the IMO convention.”

Bennett said the proposed regulation’s call for monitoring of third-country facilities and the beaching ban would not be acceptable to some of the ship-breaking nations that have already supported the Hong Kong agreement.

“In itself, beaching is not an unacceptable method of recycling ships so long as it complies with the IMO conventions,” Bennett said in a telephone interview.

Fighting for the tax

Faced for years with lawsuits brought by the Environmental Lawyers Association in Dhaka and pressure from other groups, the Bangladesh government in recent years enacted laws to protect coastal areas and the estimated 15,000 to 20,000 people who work in the ship recycling industry.

At the same time, the industry and government say ship recycling not only provides employment, but is a vital source of raw materials, including iron, that are otherwise unavailable in the poor nation of 164 million.

But the Shipbreaking Platform’s Bangladesh coordinator discounts such claims, saying “in fact, they are damaging the environment, killing the workers and they are violating the national and international law.”

Shahin said Bangladesh and other countries engaged in ship dismantling would benefit from European investment in safe facilities for the recycling of ships and disposal of toxic materials.

“The way ship breaking is going on in Bangladesh and India, for instance, they are just breaking the ships on the seashore, and they’re just cutting the ships on the ocean, and all the toxins are going onto the sea and into the environment,” he said.

Shahin’s group is urging governments to require that recycling take place in dry docks are equipped with safety equipment and disposal facilities, and that funds be made available to do so.

“When we say this there is the argument that it’s not possible for a country like Bangladesh to make dockyards to break ships, 50-60 ships at a time. In that case, the European shipping companies who want to send their ships and who want to get rid of their ships, they should finance to build [ship-breaking] facilities in our country.”

Positions:

Patrizia Heidegger, executive director of the Shipbreaking Platform, has accused centre-right politicians in the Parliament of bowing to the shipping industry in killing a fund to improve environmental and working conditions at recycling operations.

“The idea of a fund has been discussed for 15 years at the European level. Let’s face it: the Parliament failed to uphold its own principles and to deliver as promised,” she said in a statement after the parliamentary vote on 18 April. “Last year, one European ship was sent to a substandard beaching yard in South Asia every day. The EU needs to move now if it really wants to hold European shipowners accountable.”

While the overall legislation had overwhelming support in the Parliament, a proposal to impose a tax on all ships entering EU ports to help finance EU-approved recycling facilities in third countries. The tax, backed by Swedish MEP Carl Schlyter (Greens), was defeated by a narrow vote, 299-292.

“While the EP has voted to put an end to European ships being recklessly scrapped in developing countries in hazardous conditions, this is jeopardized by the failure to adopt a financial mechanism to support it,” Schlyter said in a statement after the vote. “It is very frustrating that a narrow majority succumbed to highly misleading lobbying by the maritime sector, seeking to shirk its responsibilities, and voted down the proposed financial mechanism that would have made safe ship recycling competitive.”

End-of-life vessels containing toxic materials or residue and sent abroad for dismantling fall under the Basel Convention, a UN-administered treaty on the disposal and shipment of hazardous waste.

“One of our demands is to ensure that the pre-cleaning of every ship before it starts moving to shipbreaking countries,” said Muhammad Ali Shahin, the Bangladesh coordinator for the Shipbreaking Platform, referring to the Basel treaty.

“We have to ensure that the ships are toxic-free,” he said. “It has to be ensured by the international parties and also the national government. So that means the continuity is there. The last port of the ships also be sure that the toxic waste is removed, and also our national government has to ensure that whatever is coming, it is not bringing any toxic material.”

Next steps:

7 May:First of three anticipated rounds of negotiations on ship recycling legislation between the European Parliament, Commission and Council.

June: Final vote on compromise legislation expected in European Parliament

2020: Anticipated date for International Maritime Organization members to ratify the Hong Kong Convention on ship recycling

Indian Express – New ship-breaking code firms up safety at Alang shipyard

Shipbreaking — Fri, 03 May 2013 11:02:05 +0000

(Written by Adam Halliday)

Access the original article

3 May 2013 - The Steel Ministry’s new code for ship-breaking has firmed up safety provisions for workers and delegated more powers to industrial safety personnel. The port authority at Alang, considered to be the world’s largest ship-breaking yard, recently scheduled more training sessions for the tens of thousands of unorganised workers there. It stationed a third ambulance, expanded one hospital at the yard to 24 beds and launched a monthly in-house safety newsletter.

The new code, which dedicates three out of eight chapters to safety aspects and occupational health issues, has made it mandatory for each ship recycler to implement Occupational Safety and Health management systems under which all work-related injuries, accidents and diseases are to be reported and health screening organised for workers.

The code has made it mandatory to register workers for insurance. It also limits work-timings to daylight hours while authorising the temporary shut-down of a recycling plot for up to 30 days in case of an accident causing death or serious bodily injury. Workers disabled by mishaps are also to be given alternative employment with plot-owners prohibited from firing them.

The port authority has also been directed to “provide adequate housing/dormitory facilities for workmen at suitable locations on cost recovery basis by way of rent from occupants with facilities for supply of drinking water, sanitation, electricity and shopping centre etc.”

The spate of moves by authorities comes even as the persistent number of accidents at Alang has the potential to make it a questionable destination for end-of-life ships ahead of an expected surge in ship-breaking at South Asian yards due to a current over-capacity in the world’s fleet and a 2015 deadline for phasing out single hull tankers worldwide.

The European Union is currently finalising a law to make sure the confederate’s ships are sent only to those it certifies safe, with Alang figuring prominently in official documents circulated for discussion.

The government of Japan, it has been reliably learnt, has also shown interest in sending a fleet of about 400 ships for recycling at Alang and has been keeping an eye on the yard. Japn has, in the past, pledged to upgrade facilities there, notably by building a dry dock .

SAVE THE DATE – Opening of the exhibition “Chittagong Blues & The shipbreakers”

Shipbreaking — Thu, 02 May 2013 16:31:47 +0000

Opening of the exhibition “Chittagong Blues & The shipbreakers”

Wednesday 29 May 2013 – from 6 :00PM
Edelman | The Centre, Avenue Marnix 22, 1000 Brussels (on Avenue des Arts, a 2-minute walk from metro stop “Trône”)

You are cordially invited to attend the opening of the exhibition “Chittagong Blues & The shipbreakers” on Wednesday 29th May. The exhibition will feature, for the first time in Belgium, the artistic work of German sculptress Nele Ströbel, who travelled to one of the world’s biggest graveyards of ships in Chittagong, on the south-eastern coast of Bangladesh.

Her impressions are captured in sculptures made of terracotta and various metal pieces she found in the shipbreaking yards. Her experiences on the ground also inspired ink drawings and a photo-video loop. The artist will be present during the event.

Moreover, the exhibition will feature the striking pictures which French photographer Pierre Torset has taken in the shipbreaking yards of Chittagong.

We will use the opening event to further explore the question of shipowners’ responsibility for clean and safe shiprecycling and their role in a solution of the global shipbreaking crisis.

Drinks and refreshments will be served.

Agenda

6 pm – Doors open
6 : 30 pm – Welcome speeches by
- Martin Porter, General Manager, Edelman | The Centre
- Patrizia Heidegger, Executive Director, NGO Shipbreaking Platform
- Carl Schlyter, MEP and Rapporteur on the proposed EU ship recycling regulation
6 : 45 pm – Keynote speech by Tom Peter Blankestijn, Managing Director, Sea2Cradle
Opening of the exhibition by Dr. Gudrun Pamme-Vogelsang, Art gallery owner

Registration

Email us at: francesca@shipbreakingplatform.org
Or call us at: 0032 2 609 44 19

NGO Shipbreaking Platform Annual Report 2012 (April 2013)

Shipbreaking — Mon, 29 Apr 2013 10:26:29 +0000

Abstract

“The year 2012 witnessed an unprecedented peak in numbers of toxic ships sent for breaking on beaches in India, Bangladesh, and Pakistan. At least 838 end-of-life vessels containing tens of thousands of tons of different hazardous wastes were broken down in substandard facilities in South Asia – that’s 70% of all ships dismantled last year. At least 365 of these ships belonged to European shipowners.

Mainly due to the fi nancial crisis, the overcapacity of ships all around the world is huge: scrapping is often more economical than keeping an idle ship. Shipowners, bankers, or fund managers make decisions quickly without due consideration of the impacts for workers, local communities, and the environment.

Despite the agreement of the international community that corporate entities also need to respect human rights when doing business, many shipowners still do not feel responsible for the clean and safe recycling of vessels from which they have economically benefited. Some reject criticism by saying that they have sold to a cash buyer who was then responsible for the ship; others bluntly deny any sale for demolition – even if there is clear evidence of the sale having taken place. The NGO Shipbreaking Platform and its members are convinced that the beneficial owner of a ship needs to be held responsible for environmentally sound and safe recycling and cannot disregard his responsibilities by selling a ship off to a middleman who transfers it to a scrap yard. (…)

Both regarding the reluctance of many shipowners to play a decisive role in the safe and clean recycling of their ships and the tendency of political decision-makers to fall behind established rules of international environmental law, the need for the NGO Shipbreaking Platform to continue to counterbalance such arguments is crucial.”

Tradewinds – Grieg Green profits to turn the corner as contracts fall into place

Shipbreaking — Wed, 24 Apr 2013 15:54:14 +0000

(Written by Bob Rust)

24 April 2013 - China scrapping specialist Grieg Green expects positive financial results this year with an increasing volume of tonnage

Shiprecycling specialist Grieg Green expects to turn the corner into black figures this year despite uncompetitive Chinese prices for demolition ships.

The shiprecycling subsidiary of Grieg Star Shipping, which began operations in 2011, hopes to acquire and scrap up to 12 vessels this year and had already contracted five through April.

Clients include Hoegh, Gearbulk, Sinokor and Grieg itself, but nearly all of its business is from outside owners rather than the Bergen-based parent.

“Grieg ships are not necessarily scrapped through us, but so far they have not scrapped any without us,” Grieg Green chief executive Petter Heier told TradeWinds.

Heier thinks his operation, which has lean overheads consisting of salaries and office space and no per-project costs, could probably break even on about seven ships a year but the target needs to be higher to earn back the start-up investment.

Grieg Green says it has access to financing and approved yards that would in theory allow it to buy 300 ships a year. At present, most ships are sourced through brokers but Heier and his colleagues also market directly to European and Asian owners.

Despite the constant commercial struggle, some shipowners have been persuaded that it is worth leaving $50 to $70 per tonne on the table for the sake of environmentally sustainable scrapping.

“The challenging part for us is the price difference between the subcontinent and China,” Heier said.

“At a time when most shipowners are in a financially stressed situation, it’s not easy for them to keep their green profile and lose more money.”

Today’s price gap makes it profitable to scrap in India even if a ship’s final voyage leaves it positioned in China.

In its scrapping deals, Grieg Green operates as a cash buyer but also collects a fee for its scrapping supervision services. It makes all its money from the fee, not as a cash buyer, since the purchase from the owner and the resale to the recycling yard are done on back-to-back terms.

“We are just the owners of the vessel for five minutes,” said Heier, who explains that the transfer of ownership is important for shipowners who are disposing of vessels because it saves them from any legal exposure to the scrapping yards.

Since Grieg Green takes on the transaction risk by buying and reselling the scrap tonnage, it has responsibility for making sure the deal will work technically, environmentally and also financially.

The auditing is done principally by Shanghai-based technical manager Gao Wenyan (Allan Gao) of the Shanghai office.

Together with Oslo-based Heier, Gao inspects and audits both established and startup scrapping facilities, and also the downstream facilities where scrapping yards send waste for disposal, as well as doing due diligence.

“Allan has to make sure the yards are financially strong enough to buy the vessels on their own,” said Heier.

“The main reason European owners are going to Grieg Green is that they want the security of dealing with a partner they know about. They have recourse if there’s a problem — they can bring Grieg to court instead of a Chinese shipyard,” he said. “But we also give security to the Chinese side because we check the shipowner as well.”

Grieg Green currently has agreements in place to work with six or seven scrapping yards in three regions that it has vetted. So far, however, it has sent all its ships to the Jiangmen Zhongxin Shipbreaking & Steel Co yard in southern China, which can take up to 500,000 ldt of scrap throughput per year. That works out at 40 to 50 ships.

For the future, the company is also auditing yards in Turkey and Lithuania, besides the newly opened Chinese facilities that are coming onstream each year.

“We want to be wherever things happen, whether that’s in Europe, the Philippines, South America or China,” Heier said.

ENDS Europe – Schlyter’s ship recycling fund defeated by MEPs

Shipbreaking — Thu, 18 Apr 2013 12:45:13 +0000

18 April 2013 - MEPs voting on the European Commission’s draft regulation on ship recycling have rejected a funding plan designed by MEP Carl Schlyter. But they agreed that some form of incentive should be put in place.

Mr Schlyter, who is the parliament’s rapporteur on the matter, wanted to overcome the problem of the most hazardous facilities in developing countries offering the most money for scrap ships, as their operating costs are minimal.

International law prohibits ships from OECD countries from being scrapped at facilities outside this region, but the ban is easily circumvented.

The Swedish MEP’s scheme would have helped fund the recycling of end-of-life vessels at EU-approved, better-quality facilities. It would have been financed through charges on ships calling at European ports.

The amendment to the commission’s proposal was struck down by 299 votes to 292 on Thursday, despite backing from the parliament’s environment committee.

However, the parliament accepted the idea of an incentive scheme. It endorsed a call from the centre-right EPP group for the commission to propose one by 2015.

The shipping industry and EU port operators had strongly criticised Mr Schlyter’s recycling fund, describing it as unworkable and costly. But the MEP told ENDS that claims about its impact were “grossly exaggerated”.

The parliament made a number of other important changes to the commission’s proposal. For example, the MEPs said all authorised facilities in and out of Europe should be signed off by the EU executive. In its draft regulation, the commission said member states would approve their own facilities.

To clarify the text, the MEPs also stressed that beach-based facilities, which are notoriously unsafe, could not receive EU approval.

EU-registered ships would also have to carry an inventory of hazardous materials while they are in use, rather than before they are sent for scrapping.

But without access to funding, there is little reason for owners of EU-flagged ships not to get round the rules by switching flag, Mr Schylter said.

The parliament has asked him to begin negotiations with the Council of Ministers

Europolitics – Parliament abandons proposal for recycling fund

Shipbreaking — Thu, 18 Apr 2013 12:35:52 +0000

(Written by Anne Eckstein)

18 April 2013 - By voting in favour of improving conditions for scrapping old ships, in plenary on 18 April, the European Parliament has taken a step forward in making the sector cleaner and safer. However, by refusing to endorse a proposal by the Committee on the Environment (ENVI) to create a recycling fund financed by a levy on shipowners, the plenary assembly, led by the EPP, has only covered half the ground, and – with the adoption of another amendment calling for a proposal for a financial incentive for 2015 – thrown this particular hot potato back to the European Commission.

The draft regulation⁽¹⁾ aims to reduce the adverse effects of careless scrapping of ships outside Europe – most often in South-East Asia – in ecologically unsafe and unsanitary conditions. It obliges shipowners to send ships destined to be dismantled to recycling facilities that meet specific ecological criteria, as agreed by the EU.

The ENVI committee’s report, written by Carl Schlyter (Greens-EFA, Sweden), proposes financing such a regime through a recycling levy that would be imposed on all ships (both European and non-European) using EU ports, in line with the ‘polluter pays’ principle. This proposal was rejected with a slim majority during a plenary vote on 18 April (299 votes in favour, 292 against and 21 abstentions). Instead, MEPs adopted an amendment calling on the European Commission to present, before the end of 2015, a legislative proposal for an incentive-based system that would facilitate safe and sound ship recycling.

“It is very frustrating that a narrow majority succumbed to highly misleading lobbying by the maritime sector, seeking to shirk its responsibilities, and voted down the proposed financial mechanism that would have made safe ship recycling competitive,” said Schlyter after the vote.

Otherwise, MEPs have supported the rapporteur. The regulation provides that every EU ship should carry an inventory of the dangerous materials on board, an obligation that will also apply to every third-country ship entering a Community port or anchored in EU waters. In case of non-respect of this requirement, sanctions could be imposed. Penalties would also be imposed on owners of EU ships that are sold and sent, within twelve months of the sale, for recycling on a beach or in a facility not on the EU list. EU recycling facilities should, like those in third countries, be approved by the Commission, MEPs clarified.

The assembly gave Schlyter a mandate to negotiate a first-reading agreement with the Council. Discussions should begin in May.

⁽¹⁾ COM(2012)118