IMO Hong Kong and Basel Convention Ship Recycling 2025

The shipping industry is entering a new era of ship recycling regulation. On 26 June 2025 the IMO’s Hong Kong Convention (HKC) comes into force, introducing a global legal framework for safe, environmentally sound ship recycling. At the same time the Basel Convention on hazardous waste (including its Ban Amendment) still governs transboundary movements of waste, creating potential conflicts. To address this, the IMO issued provisional guidance in late 2024 on how the two Conventions should be applied together.

Below we explain the basics of each Convention, summarize the latest IMO guidance, and outline practical steps and risks for industry stakeholders. We also highlight key regional issues (Europe, Asia, Middle East) and end with action points for legal and compliance teams.

Hong Kong Convention vs. Basel Convention: The Basics

Hong Kong Convention (HKC). Adopted in 2009, the HKC sets global rules for safe, environmentally sound ship recycling. It enters into force on 26 June 2025, two years after Liberia and Bangladesh ratified it in 2023. The HKC applies to ships of 500 GT and above on international voyages. Key requirements include:

• Inventory of Hazardous Materials (IHM): Every ship must carry an IHM identifying asbestos, heavy metals, ozone-depleting substances, and more, in line with IMO guidelines. New ships need an approved IHM at delivery; existing ships must be certified by 2030.

• Surveys and certification: A Final Survey before recycling yields an International Ready for Recycling Certificate (IRRC). Intermediate surveys verify the IHM during the ship’s life.

• Authorized yards: Recycling facilities must be authorized by their government and hold a valid Document of Authorization for Ship Recycling (DASR). Yards must prepare environmental and safety plans (SRFP) and a specific Ship Recycling Plan for each vessel.

• Cradle-to-grave responsibility: The HKC places obligations on flag States, shipowners, yards, and recycling States to manage all wastes safely and protect workers. It aims to bring Bangladesh, India, Pakistan, and Turkey, the world’s largest ship-recycling countries, into compliance with unified standards. All four have ratified the HKC ahead of 2025. China and a few smaller players have not.

Basel Convention. Adopted in 1989 and entered into force in 1992, the Basel Convention regulates transboundary movements of hazardous waste. It requires prior informed consent (PIC) from importing countries before hazardous materials are shipped, and through the Ban Amendment prohibits waste exports from developed (OECD) to developing countries. In 2004, Basel Parties agreed that end-of-life ships can be treated as hazardous waste once the owner intends to scrap them. This means a vessel destined for recycling may be subject to Basel’s rules even while still under its ship status.

Why the overlap matters. Under Basel, a ship sailing to a yard in a non-OECD country (such as Bangladesh, Pakistan, or India) is technically a hazardous waste export, which the Ban Amendment forbids unless an exemption applies. HKC, on the other hand, allows such voyages if both the flag State and recycling State are Parties. This creates legal uncertainty. A fully HKC-compliant ship could still violate Basel and be detained. For example, a port might detain a vessel with a valid Ready-for-Recycling Certificate if it considers the voyage an illegal Basel waste shipment.

Regional rules add complexity. The EU and UK implement Basel, including the Ban, through waste shipment laws. They also have their own Ship Recycling Regulations (SRR) requiring EU and UK-flagged ships to use approved yards. IMO guidance reminds stakeholders that HKC requirements are in addition to EU or UK rules. Shipowners and yards must navigate HKC, Basel (and the Ban), SRR, and other national laws.

IMO’s Latest Guidance (October 2024 - 2025)

In October 2024, the IMO’s Marine Environment Protection Committee (MEPC 82) approved Circular HKSRC.2/Circ.1, titled "Provisional guidance on implementation of the Hong Kong and Basel Conventions." This non-binding guidance explains how to apply the two Conventions together:

• If a State is party only to HKC: It should apply HKC requirements for recycling voyages.

• If a State is party only to Basel: It should apply Basel rules, including the Ban Amendment if ratified.

• If a State is party to both: It should treat HKC as taking precedence for transboundary shipments to authorized yards, provided hazardous waste is properly managed. MEPC 82 recommends that such States notify the Basel Secretariat under Article 11.

This Article 11 notification allows Basel to defer to HKC for properly managed recycling cases.

In November 2024, the IMO published FAQs on HKC implementation. These clarify that HKC-enforcing States must require IHMs, authorized yards, DASRs, and IRRCs. The FAQs also reaffirm the provisional guidance and provide a copy of the template Article 11 notification.

However, this guidance is provisional. Industry groups welcome it but caution that it does not fully resolve conflicts. As BIMCO noted, while this is a positive step, there remains a patchwork of overlapping and sometimes contradictory regulations. The Basel Conference of the Parties (COP-17) in April 2025 welcomed the HKC’s entry into force but failed to reach consensus on clarifying its relationship with Basel. In practice, EU ports may still enforce Basel rules unless exemptions are formally agreed. Industry should monitor developments at upcoming IMO and Basel meetings.

Practical Compliance Steps

Shipowners, operators, and recycling yards should act early. Key steps include:

• Inventory of Hazardous Materials (IHM): All ships of 500 GT and above should carry an updated, certified IHM. New ships must have one at delivery. Existing ships should aim for certification well before the 2030 deadline.

• Final Survey and IRRC: Before demolition, the flag State must carry out a Final Survey. Recycling cannot proceed without a valid IRRC.

• Authorized Yard Verification: Confirm the yard holds a valid DASR and complies with HKC standards. Avoid facilities not officially authorized.

• Waste Management: Ensure the yard has plans for safe handling of hazardous residues. For Basel-regulated movements, obtain PIC where needed, and ensure both States agree on applying HKC principles.

• EU and UK Compliance: EU and UK-flagged vessels must use SRR-approved yards, typically in the EU or Turkey. Ensure dual compliance with HKC and SRR.

• Documentation: Retain IHMs, survey records, certificates, and permits. Yards should maintain SRFPs and SRPs.

• Legal Coordination: Engage early with authorities. Discuss potential Article 11 notifications and ensure your contracts reflect both HKC and Basel requirements.

Key Commercial Implications and Risks

• Regulatory Complexity: Overlapping regimes create uncertainty and risk. Even fully compliant ships may be detained.

• Port Detentions: Vessels with proper documentation may still be held under Basel rules.

• Market Dynamics: Demand is rising for HKC-compliant yards, especially in India, Bangladesh, Turkey, and Pakistan. Non-compliant yards will lose competitiveness.

• Costs: Compliance increases costs for surveys, yard upgrades, and certification. However, it reduces long-term liability and improves ESG ratings.

• Insurance: Insurers and financiers may impose strict compliance requirements. Documentation lapses could result in coverage exclusions.

• Reputation: Adherence to HKC and Basel supports ESG objectives. Missteps could damage brand trust and stakeholder relations.

Regional Insights

• Europe: EU and UK flag States require dual compliance with SRR and HKC. Basel Ban rules apply to waste exports. Recycling yards must be SRR-listed.

• Asia: India, Bangladesh, Turkey, and Pakistan are now Parties to HKC and are upgrading yards. Shipowners should prioritize certified facilities.

• Middle East: While not a scrapping hub, Gulf States must comply with Basel rules. Flagged ships destined for recycling must meet PIC requirements. Port operators should understand HKC requirements.

Action Items for Legal and Compliance Teams

• Map Convention Applicability: Track the HKC and Basel status for all relevant countries (flag, port, yard).

• Update Contracts: Include compliance clauses requiring DASRs, waste permits, and recycling documentation.

• Prepare IHMs: Work with certified firms to create or update IHMs and ensure they match MEPC.379 format.

• Schedule Final Surveys: Coordinate timing with the selected yard and ensure documentation is accurate and up to date.

• Vet Recycling Facilities: Require evidence of DASR or equivalent authorization.

• Engage Regulators: Request Article 11 notifications where applicable. Coordinate with Basel authorities if necessary.

• Monitor Developments: Follow future COP and MEPC meetings for updates.

• Train Internal Teams: Ensure relevant departments understand compliance pathways, certificate requirements, and risks.

The Hong Kong Convention marks a major step forward in ship recycling governance. Yet, its coexistence with the Basel Convention creates operational and legal challenges. By preparing now, engaging regulators, and building robust compliance frameworks, businesses can reduce risks and lead in responsible ship recycling.

Target Audience:

This blog is tailored for shipowners, compliance and legal professionals, recycling yards, port and flag State authorities, insurers, financiers, and EU/UK-regulated maritime stakeholders involved in ship recycling and regulatory risk management.