When a ship has reached the
end of its life, its owner is faced with the decision of how to dispose of it
in a manner that is both commercially viable and environmentally sustainable.
The controversial practice of beaching vessels in less-developed countries has
prompted initiatives to tighten regulations on the recycling of ships. This
update looks at the existing legal framework and future proposals.
The Basel Convention
(Convention on the Control of Transboundary Movements of Hazardous Wastes and
Their Disposal 1989) is the only internationally recognised legal framework
currently in force concerning the recycling of ships. The Basel Convention does
not specifically apply to the recycling of ships, but regulates the
cross-border transportation of hazardous waste. Since many older ships contain
materials and substances which are categorised as hazardous waste, the Basel
Convention has a significant impact on the recycling of ships.
In respect of ship
recycling, one of the most important rules under the Basel Convention in
practical terms is the ban on the export of waste from developed countries to
less developed countries. This rule is set out in an addendum to the Basel
Convention which is not yet in force, but has already been implemented by a
number of signatories. However, it is unclear under the Basel Convention when a
ship is considered to be classified as waste.
The lack of clear and
comprehensive regulation on the recycling of ships inspired the Hong Kong
Convention (Hong Kong International Convention for the Safe and Environmentally
Sound Recycling of Ships 2009), which was the result of nine years of
negotiations leading up to a diplomatic conference held in Hong Kong in 2009.
Eight years later, the Hong Kong Convention still has not entered into force
because of an insufficient number of ratifications. It is uncertain when it
will enter into force, but when it does it will represent a significant shift
towards stricter regulation on the recycling of ships.
The Hong Kong Convention
covers the design, construction, operation and preparation of ships for
recycling, as well as the operation of ship recycling facilities. The aim of
the convention is to ensure that ship recycling is completed in a safe and
environmentally sustainable manner. To ensure compliance, the Hong Kong
Convention also provides for the establishment of an enforcement mechanism,
incorporating certification and reporting requirements.
Ships being recycled will be
required to carry an inventory listing hazardous materials, which will be
specific to each ship. An initial survey will be required to verify the
inventory of hazardous materials, followed by intermediate renewal surveys and
a final survey before recycling. Ship recycling yards will be required to
provide a ship recycling plan specifying the manner in which the individual
ship will be recycled, according to the particulars of the ship and its
inventory.
Due to the uncertainty
surrounding when the Hong Kong Convention will enter into force, the European
Union has enacted its own regulation, the EU Ship Recycling Regulation,(1)
which applies to vessels flying EU flags or calling at EU ports. The Ship
Recycling Regulation entered into force on December 30 2013 and is broadly
similar to the Hong Kong Convention, but with the notable exception that it
explicitly prohibits the practice of beaching, stipulating that recycling must
be completed in "built structures".
Ship recycling is something
which owners predominantly need to consider towards the end of a ship's life,
but given the introduction of much tighter regulations in the foreseeable
future, the disposal of ships will need a greater amount of planning, which
means it will be much harder for owners to make last-minute decisions.
For further information on
this topic please contact Øyvind Axe or Mattias Grieg at Wikborg Rein by
telephone (+47 55 21 52 00) or email (axe@wr.no or mgr@wr.no). The Wikborg Rein
website can be accessed at www.wr.no.
Source: international
law office. 05 July 2017
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