Hong Kong Convention entry into force

The entry into force of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) on 26 June 2025, marks a significant milestone in global maritime environmental governance (even if there remain countries with significant ship recycling activities that are either not a party to or have not ratified the HKC, for example, Pakistan, The People’s Republic of China and The United States of America). 

The aim of the HKC is to ensure that ship recycling is conducted without compromising human health, safety or the environment and applies (with limited exceptions) to ships (which term includes, without limitation, submersibles, floating platforms, FPSOs) of 500 gross tonnage or more and to ship recycling facilities under the jurisdiction of parties to the HKC. Ships flagged in countries that are party to the HKC must maintain an up-to-date inventory of hazardous materials (IHM) throughout their operational life, such inventory must be verified through surveys and documented in the International Certificate on IHM for the ship. During the operational life of a ship to which the HKC applies, whenever that ship is at a port or offshore terminal in the jurisdiction of a country that is a party to the HKC, that ship may be inspected by the authorities of that country to determine that the ship’s compliance with the HKC (if the inspection determines the ship is not in compliance, the authorities in the country of inspection may warn, detain, dismiss or exclude the ship from its ports). Before a ship is taken out of service and recycling commenced, a ship to which the HKC applies must undergo a Final Survey to verify the IHM and ensure a compliant ship recycling plan is in place for the ship with a ship recycling facility that holds valid authorisation in accordance with the HKC. Once the Final Survey is successfully completed in accordance with the requirements of the HKC, the ship will be issued with an International Ready for Recycling Certificate (IRRC) by (or on behalf of) the flag state of the vessel. 

Each country that is party to the HKC shall also ensure that ship recycling facilities located in their jurisdiction comply with the requirements of the HKC and, additionally, each country is required to take effective measures to ensure compliance (i.e. the intention of the HKC is not for a “one-off” approval of a recycling facility, but rather for countries to actively monitor and ensure continued compliance of ship recycling facilities operating in their jurisdiction). Prior to the HKC convention coming into force, numerous recycling facilities have sought to demonstrate their environmental credentials through early ‘compliance’ with HKC requirements by obtaining a Statement of Compliance (SoC) issued by a third party (such as a classification society). The SoC was, however, a business-to-business arrangement and accordingly whilst for shipowners the existence of an SoC may potentially have provided some (albeit limited) comfort regarding the standards applied at a particular recycling facility, going forward, the fact that a recycling facility had previously obtained a SoC does not automatically mean that the recycling facility complies with the requirements of the HKC. 

Whilst entry into force of the HKC represents a significant and positive international regulatory milestone in relation to ship recycling, it is important to remember it does not operate in isolation. In the context of ship recycling, the HKC (and the manner in which countries that are party to the HKC implement it into their national laws) must be considered in conjunction with other regimes, notably: The Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and their Disposal (BC)1 and the Ban Amendment to the BC (Ban Amendment)2 and the relevant manner in which such other regimes (where applicable) have been implemented into relevant national laws. This is particularly the case because each country that is party to one of these regimes is not necessarily party to all these regimes. As a result, the requirements that will need to be met when considering the recycling of a particular ship will depend not only on the flag of that ship, but also the location of the ship and the location of the intended recycling facility.

The HKC is a welcome and necessary development in the evolution of sustainable ship recycling. However, it is an addition to (rather than a simplification of) a broader regulatory framework and in this context the regimes to be ‘navigated’ when considering the recycling of a ship are not necessarily made clearer by its entry into force. Compliance with the HKC alone does not guarantee immunity from legal risk within the broader regulatory framework. A well-informed compliance strategy (including early consultation with legal advisors) is expected to continue to be an invaluable approach to navigating the regulatory framework applicable to ship recycling.