Danish Shipping: Assesment of existing regulation before new ship recycling initiatives
The Commission will not commit to a new license scheme for ship recycling. According to a new report, the Commission points out that it is still uncertain how a ship recycling license would actually work.
“We see great challenges and many loose ends to the practical transposition of the licensing idea. Especially the calculation of the cost-gap between recycling at an EU-approved and a nonapproved facility, when the ship is to be recycled 10-15 years from now, is problematic. The Commission suggests it will be this difference that determines the size of the licence premium, but what happens when the ship is sold and who ensures that the market value of the ship will not degrade compared to ships not covered and therefore cheaper to buy,” says Casper Andersen, Director of EU-affairs for Danish Shipping.
Danish Shipping fears retaliation from third countries as also ships flagged outside the EU are included as soon as they call an EU-port. This was the case when the Commission tried to include international aviation in the EU’s emissions trading system.
“We can only envisage that third country ship owners, with support from their flag-state, will reject paying into the
Expand the white list and await the effects
In the report, the Commission recognizes that the ship recycling
In addition, the Commission proposes to first assess the use and effects of the white list of approved facilities before recommending new legislation. The white list has not yet entered into force; this will happen by the end of 2018 at the latest.
“We support the Commission’s wait-and-see approach as the list rightfully needs time to work. It is essential that facilities with significant environmental and safety improvements make the list – even if they are geographically situated in areas generally associated with unacceptable conditions. We need better conditions for recycling here and now – not only in many years’ time until the
The Commission has chosen not to accompany a legislative proposal with the report to support the
The Commission’s report on “the feasibility of a financial instrument that would facilitate safe and sound ship recycling”