OEWG-V/8: Environmentally sound management of ship dismantling Information on short and medium term measures Submitted by United Kingdom Introduction 1. It is important that short and medium term measures are introduced if progress is to be made towards improving global standards in ship recycling, while the Convention on the Safe and Environmentally Sound Recycling of Ships is being developed under the International Maritime Organization (IMO). 2. The UK’s own activities in this area include: development of a national Ship Recycling Strategy, partial funding of a project to promote the use of the Basel Guidelines and development of a further project on the economics of ship recycling. These are described below. UK Ship Recycling Strategy 3. In 2003, the UK focus on ship recycling matters increased due to the import of decommissioned US naval vessels by a facility in the Northeast of England (Able UK). Able UK signed a contract in July 2003 for the recycling of 13 redundant naval vessels from the US National Defence Reserve Fleet. When 4 of these vessels arrived at the Able facility, it transpired that not all the necessary consents/permissions for their dismantling were in place. 4. Following this, the House of Commons Environment, Food and Rural Affairs Select Committee (the EFRA Committee) undertook an inquiry on ‘Dismantling Defunct Ships in the UK’. It was in response to the recommendations resulting from this inquiry that the UK Government committed to the development of the UK Ship Recycling Strategy. 5. In particular, the EFRA Committee highlighted the need to: - ensure Government owned vessels are dismantled in accordance with the principles of environmentally sound management; - Provide clear guidance to those wishing to recycle ships in the UK, and; - Work towards a global regulatory framework. The UK Strategy seeks to address these issues. 6. There are five key components to the Strategy: a. Policy on recycling Government-owned vessels Where Government-owned vessels are either sold for further use to other Governments or commercial entities, or recycled, the following commitments will apply: - - - the sales contract for a vessel destined for further use will contain conditions to ensure that the new owner takes full responsibility for the safe and environmentally sound recycling of the vessel; recycling will only be allowed at a facility in an OECD country and in accordance with acceptable environmental, health and safety standards; and, vessels exported outside the UK for recycling will be subject to the Basel Convention principles of prior-informed consent and environmentally sound management. b. Recommendations to shipowners The Strategy clarifies the applicability of EU Waste Shipments Regulation 1 to the export of UK flagged commercial vessels for recycling. In addition, the Strategy sets out further recommendations for UK shipowners, which are largely based around the IMO Guidelines on Ship Recycling. c. A Partial Regulatory Impact Assessment A partial Regulatory Impact Assessment was undertaken which examines the economic, social and environmental costs and benefits of the proposed policies in the Strategy. d. Guidance on ship recycling in the UK The guidance provides a summary of the key technical and regulatory requirements to operate ship recycling facilities in the UK. In addition, a non-exhaustive list of potential sources of assistance, including funding, for those wishing to engage in the industry is provided. e. A study of UK ship recycling capacity The study, undertaken by an independent consultancy, examined current and potential ship recycling capacity in the UK. 7. The Strategy has undergone a three month public consultation process ending in June 2006. A summary of the responses received will be published in August, with final publication of the Strategy expected in Autumn 2006. 1 The European Waste Shipments Regulation (Council Regulation No. 259/93) implements the Basel Convention in the EU and covers the supervision and control of shipments of waste within, into and out of the EU. Basel project on ship recycling 8. The UK is partially funding a project (managed by the Secretariat of the Basel Convention) which will promote the use of the Basel Convention guidelines at facilities in developing countries. 9. The key objectives of the project are: - - - to promote the practical implementation of the Basel Convention Technical Guidelines for the Environmentally Sound Management of the Full and Partial Dismantling of Ships in ship dismantling industries with a view to improving ship dismantling practices so as to mitigate the detrimental consequences to human health and the environment; to improve the accessibility and utility of the Guidelines to members of the ship dismantling industry, through the dissemination of generic information and learning materials on the Guidelines; to promote the environmentally sound management of ship dismantling in particular countries by undertaking a pilot training project in an identified ship dismantling country on the effective implementation of the Guidelines. UK project on the economics of ship recycling 10. The UK is about to let a contract to undertake a closer examination of the economics of ship recycling. Objectives are yet to be finalised, but it is likely that the study will: - - - examine the current economics of ship recycling activities and how the market operates; establish a current base cost for developing a model ship recycling facility to standards of environmentally sound management (ESM) for a variety of ship sizes and conditions; determine a cost for conversion of the global ship breaking capacity to ESM standards and determine how investment can be provided to improve them; examine the wider interaction between countries’ development aid programmes, needs for raw materials and employment, and how these may impact on developing a transition programme for compliance with the proposed new Ship Recycling Convention. 11. The results of this study will be published in due course to assist understanding of the issues, means of alleviating the problems and barriers encountered in implementing existing and new instruments.