European Parliament’s Deregulation Package Raises Concerns for Corporate Accountability

On December 16, 2025, the European Parliament adopted the Omnibus I deregulation package, marking a significant setback in the European Union’s commitment to corporate accountability and sustainable practices. This legislation, which has drawn criticism from various civil society groups, including the European Coalition for Corporate Justice, has been described as a major retreat from necessary reforms aimed at enhancing corporate responsibility.

The newly adopted Corporate Sustainability Due Diligence Directive has been notably weakened. Key provisions, such as climate transition plans that mandated large companies to reduce their environmental impact, have been eliminated. Additionally, the removal of civil liability provisions poses challenges for victims of corporate misconduct seeking justice. Critics argue that this legislative shift benefits large corporations at the expense of civil society and environmental protection. However, the fight for stronger regulations is not over; EU member states have three years to implement this legislation into national laws, and they still have the opportunity to enact more robust protections for people and the planet.

Call for Strategic Recognition of Ship Recycling in the EU

In a joint statement, the NGO Shipbreaking Platform, Recycling Europe, and EUROFER have urged the European Union to recognize ship recycling as a sector of strategic importance. The statement emphasizes the potential benefits of ship recycling for the European steel market, particularly in the context of circular economy initiatives and the transition to low-carbon production methods. Recent reports indicate that ship recycling can significantly contribute to decarbonizing European steelmaking.

To unlock this potential, several policy measures are recommended. These include closing the re-flagging loophole in the EU Ship Recycling Regulation, ensuring that only fully compliant yards are approved, and increasing investment in EU ship recycling capacity. Furthermore, transparency from shipowners regarding fleet retirement plans and the recognition of ship recycling in the upcoming Circular Economy Act are essential steps.

The push for enhanced ship recycling capabilities is also framed as an issue of environmental justice. Many ships contain hazardous materials, and their export to South Asian beaches is prohibited by international law. Strengthening the domestic ship recycling sector not only aligns with the EU’s circularity objectives but also promotes strategic material autonomy and job creation in the green economy.

Upcoming Developments in Ship Recycling and Environmental Initiatives

The European Commission has initiated a consultation process regarding the 15th update of the European List of ship recycling facilities, with feedback closing on December 31, 2025. The NGO Shipbreaking Platform has called for the removal of Turkish ship recycling facilities that utilize unsafe landing methods and has opposed the inclusion of Indian ‘beaching’ yards, which are known for their hazardous practices.

In discussions with stakeholders from the ship recycling sector, including Galloo and Kishorn Port Ltd, the NGO highlighted the need for improved EU Ship Recycling Regulations to eliminate legal loopholes that hinder compliance with environmental and human rights standards. The EU possesses the expertise and capacity for state-of-the-art ship recycling, and proper policy support is crucial to maintaining leadership in this field.

Additionally, the CirclesOfLife project, which focuses on emissions reduction and material circularity in shipbuilding, recently held a general assembly in Bremen, Germany. The project aims to develop innovative solutions for the maritime industry, including the Ship Material Passport, which promotes the reuse and recycling of components.

As the shipbreaking industry faces scrutiny and calls for reform, stakeholders are hopeful for a future that prioritizes safety, environmental sustainability, and corporate accountability in ship recycling practices.