That is, until now.

Three Indian ship recycling yards – all in the Alang hub in Gujarat - have completed compliance and audit procedures for recognition under the EU Ship Recycling Regulation (EUSRR). Six other yards are undergoing compliance and audit procedures, while 30 yards have applied for recognition. 

If approved, these yards will gain access to the profitable business of recycling European-flagged ships. The European ship-breaking and recycling market is valued between US$ 1.77 billion and US$ 1.85 billion.

Stricter Norms?

Specialists and policymakers, however, have underlined the need to ensure sovereignty, as complying with EUSSR may entail far stricter norms than the Hong Kong Convention (HKC) that Indian shipbreaking yards currently follow. 

Adopted in 2013, the EUSRR requires EU-flagged ships to be recycled only at the facilities included on the European List: yards that satisfy additional environmental, safety, and oversight requirements beyond those prescribed under the HKC.

“EUSRR recognition is multi-pronged. It’ll create a two-sided market,” Anand Hiremath, CEO, Sustainable Ship and Offshore Recycling Program, told The Secretariat. "When India adheres to the EU regulations, it shouldn't come at the cost of sovereignty," he said.

India plans to recycle 16,000 ships over the next decade, as announced by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal. According to the United Nations Conference on Trade and Development (UNCTAD), India's share of global ship recycling increased to 35.4% in 2025 from 30.1% in 2024. 

“Ship recycling is still a niche. Many in India still do not know that the country is a hub for ship recycling,” Hiremath said.

Hard-Earned Access

Experts say countries such as Turkey and the US are far ahead in terms of official recognition for their yards under the EUSRR, while India and Bangladesh are still doing the heavy lifting for securing approvals.

The EUSRR recognition would allow yards to process European-flagged vessels. 

Ship recycling is still a niche. Many in India still do not know that the country is a hub for ship recycling

– Anand Hiremath, CEO, Sustainable Ship and Offshore Recycling Program

According to Darshan Chandan, Managing Director, Port The Container Pvt Ltd, EU recognition for Indian yards would open more doors, and there would be ample opportunity for the sector to scale up at a global level. 

However, the broader perspective revolves around compliance norms, sovereignty, and the time taken to gain EUSRR recognition. 

Policymakers, who have been directly involved in the compliance and audit process for Indian yards to gain EUSRR recognition, note that it took over a decade for the three yards to complete the procedures. 

The sticking points lie in waste management - how hazardous materials are tracked and processed after they are removed from a ship, regulatory overreach, and disparity with the HKC. 

Pointing out the constraints in fully tracking, controlling, and verifying every hazardous material once a ship has been dismantled, Hiremath said, “Downstream (waste management) is a myth, and it has no limits. When stricter norms are imposed under EUSRR, they should align with the Hong Kong Convention.”

Evolution Of EUSRR

EUSRR is a culmination of decades of concerted efforts to ensure an international framework for sustainable and clean ship recycling procedures.

Its roots trace back to the 1989 Basel Convention on hazardous waste, followed by the Basel Ban Amendment, the International Maritime Organisation's (IMO) ship recycling guidelines, and eventually the 2009 Hong Kong Convention.

But while the HKC established a global baseline, the EU went further for stricter regulatory standards.

HKC/EUSRR

"The EU regulation incorporated Hong Kong Convention standards but added stricter oversight, particularly by requiring EU ships to use only EU-approved facilities," said Amit Singh, Director, Strategy & Transactions, EY.

That has prompted questions within the industry over whether environmental regulation is gradually becoming a market-access tool.

The EU regulation incorporated Hong Kong Convention standards but added stricter oversight

– Amit Singh, Director, Strategy & Transactions, EY

"They are trying to come up with a restrictive practice," Singh said. "The Hong Kong Convention provides the right environmental guardrails. The challenge is ensuring regulations don't become so restrictive or costly that they undermine the economics of ship recycling,” Singh told The Secretariat. 

According to Singh, the ship recycling industry’s immediate focus is on achieving universal compliance with the HKC. “The EU standards require greater mechanisation and investment, so aligning with them will be a gradual process rather than an overnight transition,” he says. 

This gradual transition would determine whether the EUSRR becomes a gateway to new markets or another layer of regulation that only a handful of yards can afford to meet.