Assessing the Sustainability of Steel Production Through Ship Recycling

Sub : Env

Sec: Climate change

Why in News

The potential of green steel production using scrap from dismantled ships is under debate following discussions on decarbonization at COP29 in Baku, Azerbaijan. South Asian shipbreaking yards, including those in India, are being highlighted as key contributors to this process, albeit amid concerns about environmental degradation and regulatory loopholes.

About Green Steelmaking:

Utilizes electric arc furnaces powered by renewable energy.
Involves using a mix of ferrous scrap in the production chain to reduce carbon emissions.
Alternative methods include the direct reduction of iron with hydrogen or natural gas.
Scrap-based electric arc furnaces can reduce carbon emissions by up to 75%.
Scrap recycling is cost-effective for decarbonizing steel in developing economies.
Sources of Ferrous Scrap: Dismantled ships and automobiles are major scrap sources.
South Asian nations like India (Alang), Bangladesh (Chattogram), and Pakistan (Gadani) dominate the ship recycling market, sharing it equally.

Ship Recycling and Associated Challenges:

Shipbreaking is one of the most polluting industries with significant disregard for environmental and worker safety.
“Beach dismantling,” a common practice in South Asia, causes environmental harm by dragging ships to sensitive beaches for recycling.
Unsafe working conditions and lack of proper protective measures remain widespread in South Asian shipyards.
European shipowners often sell vessels to cash buyers operating in nations with lenient environmental laws through “Flags of Convenience” (FOC).

Regulatory Framework for Ship Recycling:

Hong Kong Convention (HKC): Adopted in 2009, focusing on environmentally safe ship recycling.
Ratified by India; will come into force in
Requires shipyards to list hazardous materials, prepare dismantling plans, and prioritize worker safety.
European Union (EU) Regulation: Effective since
Mandates ships to inventory hazardous materials when calling at EU ports.
Compliance in India: Around 50% of Alang’s shipyards have been certified as HKC-compliant by agencies like Lloyds Register.

Limitations of Current Regulations:

Evasive Practices: The HKC does not prohibit beach dismantling, focusing more on planning and safety standards.
Western nations continue to evade environmental responsibility through FOC ships.
Environmental Sustainability: Reliance on beach dismantling undermines sustainability. Dry dock dismantling, practiced in developed nations, is more environmentally sound but less common in South Asia.

Future Directions for India’s Green Steel Industry:

Improving Infrastructure: Transition from beach dismantling to dry dock methods in shipyards. Encourage direct docking of European ships without intermediaries.
Alternative Strategies for Green Steel: Invest in hydrogen-based or renewable energy-powered steelmaking.
Reduce dependence on recycled scrap from environmentally damaging sources.
Global Cooperation: Strengthen international regulations to hold polluting shipowners accountable. Advocate for stricter implementation of the HKC and EU norms.