Bangladesh ratified the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 in June 2023, and it will enter into force in June 2025. Hence, it is crucial to tackle the challenges of effective implementation of this Convention.

Since its inception in the 1980s, the ship recycling industry in Bangladesh has contributed to the nation's economy by supplying scrap to rerolling mills and creating employment opportunities. Data indicates that this industry supplies 60% of the raw materials for the iron industry. The economic livelihood of millions is directly tied to this sector, providing a steady income for both regular and casual labourers. After the Hong Kong Convention comes into effect, except for at the certified Green Ship Breaking Yards, no ship can be dismantled elsewhere in Bangladesh. According to the Ship Breaking Association, there are five to seven classification society-certified Green Ship Recycling Yards, including PHP Ship Recycling Yard, SN Corporation, and KR Ship Recycling Yard. Furthermore, 15 other ship breaking yards are struggling to comply with the standard and are investing significant funds to make necessary improvements.

Amongst the existing ship recycling yards in Bangladesh, most are non-compliant, preventing them from recycling ships once the Hong Kong Convention takes effect.  As a result, the industry's capacity to employ thousands will lessen significantly. Moreover, if scrap supply becomes limited, rerolling mills will ultimately cease production, jeopardising job creation. Additionally, to maintain the steel supply, the government will need to import raw materials, which will deplete foreign currency reserves and affect Bangladesh's macroeconomic context.

Additionally, as a result, this will allow India and Pakistan to thrive in this business, as India, supported by its government, showcases more compliant green yards, shifting the international community's focus on ship dismantling to there. In Gujarat, India, there are numerous shipbreaking yards claiming to be green, attracting global attention towards ship recycling.

Another compliance issue regarding the Convention that requires a solution is the need for the establishment of a TSDF (Treatment, Storage, and Disposal Facility), which is essential for hazardous waste disposal. Although establishing a TSDF is a compliance requirement for the HKC 2009, there are insufficient efforts to complete it by June 2025. Currently, the initiative is only at the land acquisition stage, making prompt establishment unlikely. Consequently, this leads to ongoing environmental pollution from the industry, while the Green Ship Breaking Yards have established hazardous waste storage facilities at their own expense to comply with the HKC 2009. The issue of environmental pollution remains a significant concern for Bangladesh and requires urgent government action to establish a TSDF, a critical commitment in the HKC 2009 and a demonstration of government activism to promote this industry for the benefit of the environment and economy.

Furthermore, the ship recycling industry in Bangladesh faces regulatory challenges. In line with the commitment to fulfill the obligations under the Convention and following the directives of the Honorable High Court Division of the Bangladesh Supreme Court in a Writ Petition filed by the Bangladesh Environmental Lawyers Association (BELA), the Government of Bangladesh adopted the Ship Building and Recycling Rules 2011. This was peculiar because no law was enacted by the Parliament at that time that could give the rule-making power to the government. After a long delay, in 2018, the Parliament enacted the Bangladesh Ship Recycling Act 2018, establishing a Ship Recycling Board and granting it all regulatory power. Unfortunately, despite the passage of long time, board members have not been appointed due to bureaucratic constraints. Moreover, as per section 37 of the 2018 Act, without the board's authorisation, no court will take cognizance of any case filed under this Act. Thus, all administrative and judicial functions related to ship recycling rely on the board's action under this Act, which is yet to be fully constituted.

It can be said that the Hong Kong Convention disproportionately places responsibility on the Ship Recycling State rather than the flag state. This criticism is substantiated when significant stakeholders, such as cash buyers or Ship Broker Agents, are excluded from responsibility. In this context, to address both socioeconomic and environmental interests, the government must take steps to overcome the administrative, infrastructural, and environmental challenges for the application of the Convention in Bangladesh.

The writer is PhD Research Fellow on Ship Recycling, the University of Malaya, Malaysia.