The finance and investment community in Hong Kong, China was informed of the growing opportunities and urgent needs in sustainable ship recycling.
The event, organized by IMO’s SENSREC project at Hong Kong Maritime Week on Nov. 18, brought together representatives from Norway, Bangladesh, Pakistan, BIMCO, the International Labour Organization (ILO) and the Hong Kong-based banking and finance community to explore the future market trends and the evolving regulatory landscape, following the entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) in June 2025.
Several studies anticipate a sharp rise in end of-life vessels between 2025 and 2040, with projections suggesting that by 2033 the number of ships sent for dismantling could increase fivefold, significantly boosting the availability of high-quality scrap steel.
Meanwhile, loopholes in international law allow ships to be scrapped at substandard facilities.
EU shipping companies control over 35% of the global fleet. However, when these vessels reach the end of life, only 1% of the European ships are recycled in the EU.
Expert panels highlighted the critical role of responsible ship recycling in fostering a circular Blue Economy and supporting the necessary renewal of the global fleet.
As a considerable number of vessels are expected to reach the end of their operational lives in the coming years, safe and environmentally sound recycling is vital for recovering valuable materials and managing hazardous waste.
Participants also reviewed the current status and improvements to date in the ship recycling situation in South Asia, where most global ship recycling occurs.
Representatives from Pakistan and Bangladesh called for increased research on the development and application of new technologies in the sector, as well as investment in support infrastructure. This includes improved road networks and the establishment of Treatment, Storage, and Disposal Facilities for hazardous materials removed from end-of-life ships.
Discussions emphasized that responsible ship recycling is not only a regulatory necessity but also a significant investment opportunity that supports the maritime sector’s transition to a greener future while prioritizing worker safety and environmental protection.
The event was part of the Safe and Environmentally Sound Recycling of Ships (SENSREC) Project – a collaboration between the government of Norway and IMO aimed at supporting developing countries in implementing the Hong Kong Convention.
