EU Ship Recycling List Decision Could Reshape Competition for Indian and Turkish Yards

The next change to the European Union’s ship recycling list could affect where shipowners send end-of-life vessels and how yards in India and Turkey compete for that work. On November 4, 2026, the European Parliament’s Environment Committee is scheduled to decide whether to object to adding two facilities in India’s Alang region. If the objection is rejected and the facilities are approved, they would be the first from the Indian subcontinent on the EU list.

The decision comes as the sector faces a large projected increase in recycling demand. BIMCO estimates that more than 16,000 ships, with combined capacity of approximately 700 million deadweight tons, will need recycling over the next 10 years. That is more than twice the number of ships recycled in the previous decade and nearly three times the carrying capacity. Industry representatives say the capacity of currently approved facilities may not be sufficient for that volume.

Two Alang facilities under consideration

The facilities at issue are Shree Ram Vessel Scrap and YSI Recyclers, both operating in Alang, India. The European Commission has proposed including them on its list of facilities eligible to recycle EU-flagged vessels. The committee’s November 4 decision concerns an objection to that proposal.

Under the EU Ship Recycling Regulation, an EU-flagged ship at the end of its economic life may be recycled only at a facility on the Commission’s approved list. Entry would therefore give the two Alang yards access to a defined pool of vessels, subject to the regulation’s requirements. It would also mark the first time a facility from the Indian subcontinent has joined the list.

The proposal’s outcome remains uncertain. If the objection is rejected and the facilities are added, shipowners would have more listed destinations to consider. The practical effect would depend on the final status of the facilities and on how shipowners weigh destination, capacity, compliance requirements and the commercial terms available to them.

Turkey’s position and the capacity question

The European Commission’s February 2026 list contained 41 facilities: 30 in Europe, 10 in Turkey and one in the United States. Adding two Indian yards could change the competitive conditions for Turkish recyclers handling EU-flagged vessels. The source does not quantify how much business might shift or how the two proposed facilities would compare with existing yards in capacity.

Turkish facilities retain advantages cited by the source: their proximity to the European market and their existing EU approvals. Those factors may matter to shipowners assessing where to send vessels, while an expanded list could give them additional options. The balance between those considerations will depend on operators’ needs and the terms offered by individual facilities.

The scale of BIMCO’s projection puts this competition in a broader capacity context. More than 16,000 ships are expected to require recycling over the coming decade, but the figures alone do not establish how much work each region or facility will receive. For yards, shipowners and other market participants, the relevant question is whether listed facilities can accommodate the vessels that come forward and meet the applicable standards.

Standards and industry disagreement

The EU system is intended to improve worker safety, limit environmental harm from hazardous waste and align dismantling practices with international standards. Differences between the EU approval system and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships remain a point of debate. The convention is due to come into force on June 26, 2025.

European recycling operators have raised concerns about environmental safeguards and worker safety at facilities in India. Their concerns include beaching, handling materials containing asbestos and preventing hazardous waste from contaminating the surrounding environment. These issues sit at the center of the dispute over whether the two Alang facilities should be added to the EU list.

BIMCO, the International Chamber of Shipping, INTERCARGO, ECSA and other maritime organizations have argued that facilities found through inspections to meet EU standards should be approved. Eight international maritime organizations said in a joint letter to the EU that excluding facilities that satisfy the criteria could weaken confidence in the system. The disagreement therefore concerns both the conditions at individual yards and the consistency of the listing process.

What the decision could signal

The November 4 decision will determine the next step for Shree Ram Vessel Scrap and YSI Recyclers, while also offering a signal about how the EU list is applied as recycling demand grows. Its consequences could reach shipowners choosing destinations, yards competing for vessels and sellers seeking revenue from recovered scrap. The scale of any commercial effect remains unknown.

For operators, the concrete takeaway is to track the status of the two proposed additions and the standards discussions surrounding them. A larger list could expand the available destinations for EU-flagged vessels, while the existing debate shows that facility eligibility remains closely tied to inspection findings and environmental and safety practices. The decision’s outcome is still uncertain.

Source: SeaNews Türkiye