To Save Bangladesh’s Ship Recycling Industry, Phase In the HKC
Bangladesh Faces Critical Ship Recycling Dilemma
Bangladesh has ratified the International Convention for the Safe and Environmentally Sound Recycling of Ships, known as the Hong Kong Convention (HKC), marking a significant step for the nation’s ship recycling industry. Effective June 26, 2025, the Convention presents challenges and opportunities for Bangladesh, a leading player in global ship recycling. As the government suspends permissions for importing end-of-life vessels amid compliance uncertainties, the industry faces potential disruption, raising questions about its future viability.
Suspension of Ship Imports Sparks Industry Concerns
The Government of Bangladesh has temporarily halted the issuance of No Objection Certificates (NOCs) for ship imports intended for recycling, creating turmoil within the ship recycling sector. This industry, which has been operational for over three decades, has relied on the Ship Breaking and Recycling Rules established in 2011. With Bangladesh accounting for nearly half of the world’s ship recycling needs, the suspension poses a significant threat to a vital economic sector. The country competes closely with India, where approximately 82% of ship recycling yards have already achieved compliance with HKC standards. In contrast, nearly 90% of Bangladesh’s facilities remain non-compliant, highlighting a critical gap in readiness for the upcoming international regulations.
India’s proactive approach to modernizing its ship recycling facilities has positioned it favorably in the global market. By treating ship recycling as a business opportunity rather than merely an environmental challenge, India has made substantial investments to meet international benchmarks. Bangladesh, however, has struggled with inadequate government support and a lack of sustained political commitment, which has hindered its progress. The current suspension of ship imports raises urgent questions about the future of the industry and the government’s ability to balance environmental obligations with economic needs.
Path Forward: Phased Implementation and Strategic Planning
Despite the challenges, Bangladesh has a lawful pathway to implement the HKC through a phased approach. International law allows developing countries to gradually meet environmental standards, and Bangladesh can leverage this flexibility. The principle of pacta sunt servanda under the Vienna Convention emphasizes that countries must fulfill treaty obligations in good faith, taking into account their capacities. This means that Bangladesh can adopt a structured development plan that allows for conditional authorizations of ship recycling facilities while working towards compliance.
To navigate this transition, the government could categorize recycling yards into three groups based on compliance levels: fully compliant (Group A), progressing (Group B), and non-compliant (Group C). Facilities in Group B could receive conditional NOCs tied to specific development milestones and regular audits. This approach would enable Bangladesh to continue operations while making genuine progress toward meeting HKC standards. Furthermore, international bodies and financial institutions support such phased implementation strategies, which could provide Bangladesh with additional technical assistance and resources.
