EU’s Circular Economy Act Faces Ship Recycling Concerns
On April 30, the final stakeholder workshop regarding the European Commission’s impact assessment for the Circular Economy Act (CEA) took place, drawing attention to significant concerns from the NGO Shipbreaking Platform. The organization warns that the current proposal may overlook a crucial opportunity to utilize end-of-life ships as a valuable resource for steel decarbonization and material resilience. Without addressing ship recycling, the CEA risks failing to meet its ambitious goals of fostering a Single Market for secondary raw materials.
Unlocking the Potential of Ship Recycling
The NGO Shipbreaking Platform highlights the immense potential of ship recycling within the European Union (EU) and the European Free Trade Association (EFTA). Research indicates that EU/EFTA-owned ships could contribute up to 12 million tonnes of high-quality steel scrap annually over the next decade. This represents a significant secondary raw material stream for the EU steel industry, with the potential to recover up to 95% of a ship’s weight as high-quality scrap. Such recovery efforts are essential for the decarbonization of the steel sector, positioning Europe as a leader in sustainable practices.
However, the recent workshop revealed a critical oversight in the proposed CEA. The impact assessment primarily focused on waste management measures, such as extensions to the Waste Electrical and Electronic Equipment (WEEE) Directive and construction waste regulations. Unfortunately, it largely neglected higher levels of the circularity hierarchy, including prevention, reuse, repair, and refurbishment. This narrow focus risks reducing the Circular Economy Act to mere waste management legislation, failing to address the lifecycle of materials before they become waste.
In response, the NGO Shipbreaking Platform, alongside Recycling Europe and EUROFER, has issued a joint statement urging the EU to recognize the strategic importance of the ship recycling sector. They advocate for concrete measures to retain valuable scrap steel within Europe, emphasizing the need for a broader approach that encompasses material overuse and reuse beyond the current recycling framework.
Proposed Actions for a Sustainable Future
The NGO Shipbreaking Platform has outlined several key actions for the European Commission to consider in the Circular Economy Act. These include closing the re-flagging loophole in the EU Ship Recycling Regulation, recognizing ship-derived steel as a strategic secondary raw material, and accelerating the development of a Ship Material Passport. This passport would track materials from design to dismantling, facilitating cross-sector reuse.
Additionally, the organization calls for financial incentives to ensure that ship-derived materials remain within the EU, including a ship recycling return scheme. Aligning shipping sector subsidies with clear circularity obligations and ensuring dedicated investments under programs like LIFE and Horizon Europe are also crucial steps to enhance EU ship recycling capacity.
Implementing these measures could significantly accelerate decarbonization efforts, as each tonne of recycled ship steel can prevent up to 1.5 tonnes of CO₂ emissions compared to primary production. Furthermore, it would strengthen Europe’s strategic material autonomy, create green jobs, and uphold the EU’s leadership in environmental stewardship and circular economy policy.
Global Shipbreaking Report Highlights Safety Concerns and Environmental Impact
Benedetta Mantoan, Policy Manager at the NGO Shipbreaking Platform, emphasizes the importance of addressing environmental justice. Many EU-owned vessels are still exported for dismantling in South Asia, posing severe risks to workers and ecosystems. The EU must take responsibility for its waste and ensure that ship recycling occurs within its borders.
