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The Economics of Shipbreaking

The Hong Kong Convention

How the Hong Kong International Convention for safe and environmentally sound ship recycling, adopted in 2009, finally entered into force in June 2025, and what it requires.

The Hong Kong Convention sets global shipbreaking rules.

Adoption

Adopted by the IMO in 2009.

Entry into force

It entered into force on 26 June 2025 after enough countries, including Bangladesh and Liberia, ratified it.

India

India ratified it in 2019 and passed the Recycling of Ships Act, 2019.

Requirements

  • Authorised recycling facilities.
  • Hazardous materials inventories.
  • Ship recycling plans.

Critics

Some NGOs say it doesn’t ban beaching.

Effects

Many Alang yards upgraded to meet standards.

The certified yard

An Alang yard gets a statement of compliance with the Hong Kong Convention, attracting more ship owners.

Thinking shipbreaking is unregulated globally

The Hong Kong Convention entered into force in 2025.

Key takeaways
  • The Hong Kong Convention was adopted in 2009.
  • It entered into force in June 2025.
  • India passed a ship recycling law in 2019.
  • Critics say it allows beaching.
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