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| Recycling decommissioned ships |
Ship Recycling as a Key Source of High-Quality Scrap
The EU could secure millions of tons of high-quality scrap by recycling decommissioned ships. According to Belgian NGO Shipbreaking Platform, only 1% of European ships are currently recycled locally. Meanwhile, 70–95% of a ship’s weight can be recovered, offering a substantial secondary raw material for the steel industry.
Impact on EU Steel Decarbonization
Increasing scrap use in electric arc furnaces can significantly cut CO2 emissions. Steel production from secondary materials consumes less energy. Therefore, recycling ships aligns with the EU’s carbon-neutrality goals. Analysts expect 700 ships annually to be dismantled by the 2030s, potentially generating 10–12 million tons of scrap by 2033.
Policy and Circular Economy Implications
Current practices, such as flagging out, undermine EU environmental standards. In contrast, local recycling ensures worker safety and environmental protection. As a result, EU policymakers must close regulatory gaps and promote sustainable ship recycling within the circular economy framework. This will secure reliable scrap supply for steelmakers.
ScrapInsight Commentary
Recycling decommissioned ships could become a strategic scrap source for EU steelmakers, reducing emissions and energy use. Strengthened regulations and local dismantling will enhance circular economy outcomes. The 2030s could see a substantial shift in scrap supply dynamics, supporting both industrial and environmental goals.
