The shipbreaking industry is considered one of the most polluting industries for the environment. Therefore, businesses must obtain approval at several stages, including conducting an Environmental Impact Assessment (EIA), before setting up a yard.
However, the government has decided to downgrade the industry from the red category to the orange category, meeting a long-standing demand from shipbreaking yard owners. This decision could remove the requirement to conduct an EIA before establishing a yard.
Entrepreneurs in the shipbreaking industry say that, because the industry falls under the red category, it takes around 90 days to obtain approval to set up a yard. They claim that this delay causes them financial losses.
Environmentalists, however, fear that the government’s decision will put both workers and the environment at risk. They say shipbreaking is a high-risk and highly polluting industry.
The International Labour Organization (ILO) has described it as one of the most dangerous industries. Marine ecosystems, soil and air along the coastlines of Chattogram and other South Asian areas where shipbreaking takes place are suffering severe pollution.
According to sources, the committee responsible for the matter decided on 29 September to reclassify the industry from the red category to the orange category.
The Prime Minister’s Office formed the committee in August to review existing laws, regulations, policies and related matters concerning the ship recycling industry.
Environment, Forest and Climate Change Minister Abdul Awal Mintoo chairs the committee. The industry minister, the state minister for shipping, the Cabinet Secretary, the Finance Division Secretary, and the Law and Parliamentary Affairs Secretary are its members. However, the committee includes no representatives from environmental organisations or environmental experts.
Asked about the decision, Environment Minister Abdul Awal Mintoo told Prothom Alo, “We have 15 to 20 green yards under the Hong Kong Convention.”
According to business owners, they have invested around Tk 1.5 billion (150 crore) in each yard. As the shipbreaking industry falls under the red category, they have to wait three months to obtain permission to establish a yard. This delay is causing financial losses for businesses.
Asked whether the government’s decision would increase the risk of environmental pollution, he said, “We must protect both the environment and the industry.”
Under the Environment Conservation Rules 2023, both shipbreaking activities and shipbreaking yards fall under the red category. The rules state that factories or establishments in the red category have severe impacts on the environment and human health. Significant measures are therefore necessary to address these impacts.
What do the existing rules say and what is set to change?
Under the existing rules, anyone seeking to establish a shipbreaking yard must first conduct an environmental impact assessment (EIA). The requirement also applies to the shipbreaking industries of India and Pakistan.
Currently, a yard must submit detailed terms of reference (ToR), outlining the measures it will take to prevent pollution, to the Department of Environment’s headquarters and obtain approval before beginning the EIA process.
As part of the process, a representative of the Department of Environment leads a public consultation in the relevant area. The representative then sends a report containing the feedback received to the department’s district office. The department’s headquarters reviews the report once again before issuing a site clearance certificate for the proposed yard.
The next step is obtaining an environmental clearance certificate. The department issues this certificate after inspecting the measures taken by the yard to prevent pollution from harming the environment and human health. The entire process takes 90 days.
If the government reclassifies the shipbreaking industry under the orange category, these requirements will no longer apply in the same way. Under the Environment Conservation Rules 2023, industries in the orange category must submit an initial environmental examination report to the divisional office of the Department of Environment.
If the divisional office considers an EIA necessary, it may recommend one. However, the yard will not be obliged to follow that recommendation. Applicants will no longer need to approach the department’s headquarters for final approval to establish a yard; the divisional office will issue the approval.
Several officials at the Department of Environment told Prothom Alo on condition of anonymity that the changes to the rules would prevent the authorities from assessing how much pollution a yard might cause and the extent of its environmental impact. They warned that the monitoring system for the industry would become weaker.
Abdun Naser Khan, secretary of the Ministry of Industries, told Prothom Alo, “This is a highly promising industry. By 2030, around 6,500 ships worldwide will be ready for scrapping. If we can increase the number of green yards, we will secure a substantial share of the shipbreaking business.”
According to sources at the Department of Environment, shipbreaking yards in Sitakunda, Chattogram, currently dismantle 150 to 200 ships every year. It takes six months to dismantle a single ship. Between 30,000 and 35,000 workers are employed at these yards.
Environmental experts say that shipbreaking must comply with the Basel Convention, under which each party must take responsibility for its own waste. If ships carrying waste from developed countries arrive in Bangladesh, the developed countries must remain responsible for that waste.
They argue that dry docks — specialised facilities designed for ship repair and dismantling — are the only viable option for shipbreaking in Bangladesh.
The industry cannot become environmentally friendly simply by laying concrete on open sea beaches. They stress that strict compliance with all relevant national and international laws are essential to make the industry safe.
Syeda Rizwana Hasan, chief executive of the Bangladesh Environmental Lawyers Association (BELA), told Prothom Alo that relaxing the rules contradicted ongoing litigation concerning shipbreaking pollution, as well as court judgments and orders. She added that the government had not informed the court before making the decision.
“Ten workers died from gas emissions as recently as August. This kind of decision will put workers’ lives at even greater risk,” she said.
Rizwana Hasan added, “During the fascist regime, we saw industries being permitted to set up inside the Ecologically Critical Area of the Sundarbans with a single stroke of the pen. It is unacceptable for the elected government to make decisions in this manner.”
She questioned why the government had not invited any environmental experts or activists before making such a major decision on shipbreaking, when it had consulted environmentalists while making decisions concerning Saint Martin’s Island.