6 Ship dismantling
| (30216)
16220/08
+ ADDs 1-2
COM(08) 767
| Commission Communication: An EU strategy for better ship dismantling
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| Legal base | — |
| Document originated | 19 November 2008
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| Deposited in Parliament | 28 November 2008
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | EM of 26 January 2009
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| Previous Committee Report | None, but see footnotes 12 and 13
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
6.1 According to the Commission, the dismantling of ships —
much of which takes place on the Indian sub-continent —
is a matter of concern from a health and environmental point of
view, and its Green Paper on Maritime Policy in June 2006[12]
emphasized the need to support initiatives at international level
to achieve minimum binding standards on ship recycling.
6.2 A further Green Paper[13]
in May 2007 sought to prepare the ground for future action, noting
that the tonnage dismantled world-wide each year was expected
to peak in 2010 with the phasing-out of single hull tankers. It
pointed out that, between 2001 and 2003, 32% of ships going for
scrapping flew the flags of current or future Member States, and
that about 100 warships and other Government vessels flying Community
flags were expected to be decommissioned in the next 10 years.
It highlighted the fact that none of the sites used on the Indian
sub-continent had facilities to prevent pollution or receive waste,
with the treatment of waste rarely conforming to even minimum
environmental standards. On the other hand, it acknowledged the
importance of ship breaking as a source of raw materials in south
Asia, and stressed that the aim should to maintain activity levels
there, whilst ensuring that minimum standards are met.
6.3 The Green Paper went on to identify the current
legal and institutional framework, pointing out that, in accordance
with the Basel Protocol, the export from the Community to non-OECD
countries of vessels containing considerable quantities of hazardous
materials is banned by the Waste Shipment Regulation, and that
the International Maritime Organisation (IMO) had started work
on an international convention, whilst some maritime countries
(including the UK) were developing national strategies. It also
commented that, although returns from dismantling were currently
high, a study had concluded that it would be extremely difficult
for the activity to be economically viable within the Community
due to competition from low-wage areas. As a result, dismantling
capacity in the Community had been reduced to a "marginal"
level, capable of handling warships and other state-owned vessels,
but only a minor part of the merchant fleet.
6.4 The remainder of the Green Paper considered options
for improving European management of ship dismantling. These included
better enforcement of Community waste shipment law (for example,
by targeting vessels above a certain age, or where there are indications
that dismantling is intended); international solutions (notably
the swift conclusion of the proposed IMO convention, and its transposition
into Community law); strengthening Community ship dismantling
capacity; technical assistance and technology transfer to encourage
the upgrading of dismantling facilities in other countries; encouraging
voluntary action by ship-owners (supported, where possible, by
incentives); and the establishment of a ship dismantling fund,
similar to that covering oil pollution under the MARPOL Convention,
for which owners would take full responsibility. It also suggested
a range of other options, including Community legislation (for
example, attaching conditions to the dismantling of single hull
tankers, or preventing the use of hazardous materials in the construction
of new ships); linking any state aids for maritime transport to
the use of clean and safe dismantling facilities; establishing
a European certification system for clean ship dismantling; and
intensifying international research on ship dismantling.
6.5 In our Report of 27 June 2007, we noted that
the Government saw the Commission's initiative as being generally
consistent with the UK's Ship Recycling Strategy, published in
February 2007, and that it strongly supported an international
solution through the IMO. It also said that the UK would continue
to seek appropriate solutions — including giving serious
consideration to proposals for any regional strategy within Europe
— to ensure that shipping at a European and global level
has access to safe and environmentally sound recycling facilities,
and that ships dealt with are subject to a level of control equivalent
to that provided by the Basel Convention.
The current document
6.6 This latest document takes into account the results
of consultation on the earlier Green Paper and of other developments
since then. On the one hand, it notes that there remains a strong
economic incentive for ship owners to choose recycling facilities
of a low social and environmental standard; that enforcement of
the existing law on waste shipments is poor, particularly as regards
movements outside European
waters; and that, although an unexpected rise in freight rates
has led to a slowing in the rate of dismantling, this is likely
to lead to an increased backlog in a few years' time, with a peak
still likely to arise from the phasing out of single hull tankers.
On the other hand, a diplomatic conference in May 2009 is expected
to result in the adoption of an International Convention on the
Safe and Environmentally Sound Recycling of Ships, providing a
comprehensive system of control and management, relying on the
survey and certification of ships and the authorisation of recycling
facilities. The Commission adds that it is working with Member
States to ensure that this Convention provides a level of control
equivalent to that under the Basel Convention.
6.7 The Commission says that the general objective
of Community policy in this area should be to ensure that, wherever
those ships with a strong link to it are dismantled, this should
take place only in safe and environmentally sound facilities,
and it goes on to identify a number of actions need to achieve
this.
Early implementation of the Ship Recycling Convention
6.8 The Commission notes that, allowing for signature
and ratification, the new Convention is unlikely to become effective
until about 2015, and that its full impact will not be felt until
even later. However, it notes that action by the Community to
comply with its provisions is likely to prompt other countries
to speed up ratification, particularly if the Community makes
its provisions binding on all ships within European waters. The
Commission therefore proposes to start preparing the establishment
of key elements of the Convention as soon as it is adopted.
Dismantling of warships and other Government vessels
6.9 The Commission notes that the Convention will
not apply to warships and other vessels used only by government
on non-commercial services, to ships of less than 500 GT, or to
those operating only within domestic waters. It sees no need to
address these last two issues at present, since the ships in question
are not normally dismantled in Asian facilities, but it suggests
that one way of making more effective arrangements for state-owned
ships would be to impose conditions on their sale to third states
or private companies before they become waste.
Action by industry in the interim period
6.10 The Commission suggests that an attempt should
be made to persuade ship recyclers to improve their environmental
and safety standards voluntarily, and for ship owners to encourage
this by paying the requisite rates. It comments that this should
not impose an excessive financial burden, and that such action
could be encouraged by a Community-wide public campaign coupled
with high-level negotiations with those concerned. It adds that,
although subsidies out of public funds cannot be justified, public
funding to third countries could play a limited role, provided
there was sufficient willingness by the relevant governments and
industries to cooperate.
Better enforcement of waste shipment rules
6.11 The Commission comments that, even if a new
Convention is agreed, the Basel Convention and Community waste
shipment legislation will continue to apply for the time being,
and that it is therefore important to consider how these could
be better enforced. It suggests that this could be achieved through
the provision of further guidance, increased cooperation between
authorities in the Community and those in countries of transit
and destination, and the establishment of a list of ships which
are ready for scrapping.
Auditing and certification of dismantling facilities
6.12 The Commission notes that provisions on the
auditing and certification of dismantling facilities under the
Convention are still under consideration, but says that, subject
to the outcome, it will examine how to ensure that ships operating
in Europe go to certified and audited dismantling facilities.
Ensuring sustainable funding
6.13 The Commission points out that the proposed
Convention assumes that, together with market forces, its provisions
will be sufficient to make ship dismantling a safe and environmentally
sound activity, and that the shipping industry has argued that
the ship dismantling funds referred to in the Green Paper would
create unnecessary burdens. However, the Commission also suggests
that there is a risk that a lack of clarity on recycling standards,
and inadequate compliance mechanisms will allow poor practices
to continue and create a disincentive to investment. It therefore
suggests that, if this turns out to be so, the option of creating
such a fund on the "polluter pays" principle should
be reconsidered, preferably within the IMO, but on a Community-wide
basis, if necessary.
The Government's view
6.14 In her Explanatory Memorandum of 26 January
2009, the Minister of State (Farming and the Environment) at the
Department for Environment, Food and Rural Affairs (Jane Kennedy)
says that the UK welcomes this initiative by the Commission, adding
that it acknowledges the serious concern over environmental standards
at many current recycling facilities world wide and strongly supports
an international solution to this challenge through the IMO.
6.15 The Minister says that the UK will continue
to seek appropriate solutions to ensure that shipping at a European
and global level has access to safe recycling facilities, and
is subject to a level of control equivalent to that provided by
the Basel Convention. In addition to the early entry into force
of the new Convention, and interim measures, it will give consideration
to proposals for a regional strategy within Europe, and will be
reviewing the proposals in this Communication in order to contribute
to further discussion. She also comments that some of these —
notably the dismantling of warships and other government vessels,
a mandatory international funding system, and a certification
and audit scheme — will require particularly careful consideration.
Conclusion
6.16 This Communication provides a useful follow-up
to the Green Paper which the Commission produced in May 2007 on
the environmental, economic and social issues which arise from
the dismantling in southern Asia of ships flying the flag of Community
Member States. We are therefore drawing it to the attention of
the House, but, since it does not raise any major new issues,
we are clearing it.
12 (27686) 11510/06: see HC 34-xxxix (2005-06), chapter
2 (25 October 2006). Stg Co Deb, European Standing Committee,
19 March 2007. Back
13
(28671) 10224/07: see HC41-xxvii (2006-07), chapter 4 (27 June
2007). Back
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