The government has decided to reclassify the ship-breaking industry from the red category to the orange category, fulfilling a long-standing demand of yard owners and potentially eliminating the mandatory requirement for environmental impact assessments before establishing new yards. The move, aimed at streamlining business operations, was advanced following a decision by a high-powered committee. The committee was formed in August by the Prime Minister's Office to review existing laws, rules, policies, and related matters concerning the ship-recycling industry, headed by the Minister for Environment, Forest and Climate Change, Abdul Awal Mintoo. The panel also includes the industries minister, state minister for shipping, cabinet secretary, finance division secretary, and law and parliamentary affairs division secretary, though no environmental experts or representatives from environmental organisations were included.
Under the existing Bangladesh Conservation Rules of 2023, both ship-breaking activities and yards are classified as red-category industries, meaning they severely impact the environment and human health and require significant mitigation measures. Currently, setting up a yard requires a rigorous process, including a detailed environmental impact assessment, public hearings overseen by the Department of Environment, and the acquisition of location and environmental clearances—a procedure that takes approximately 90 days. Ship-breaking entrepreneurs have argued that the red-category designation and the ensuing three-month wait time cause financial losses. Reclassifying the industry to the orange category would bypass these stringent prerequisites, requiring only a preliminary environmental report submitted to a divisional office rather than final authorization from the Department of Environment headquarters.
Environmentalists and legal experts have expressed grave concern, warning that the policy shift will severely compromise both worker safety and the marine ecosystem. Syeda Rizwana Hasan, chief executive of the Bangladesh Environmental Lawyers Association, emphasized that relaxing the rules directly contradicts ongoing legal proceedings, court rulings, and judicial orders regarding pollution control. She noted that the administration failed to inform the judiciary prior to making the decision, pointing out that the tragic death of 10 workers from gas inhalation as recently as August underscores the lethal risks laborers already face. Critics reiterate that the International Labour Organization considers ship-breaking the most dangerous industry in the world, and open-beach breaking along the coastlines of Chattogram and South Asia heavily contaminates soil, air, and marine biodiversity.
Defending the decision, Environment Minister Abdul Awal Mintoo highlighted that Bangladesh possesses 15 to 20 green yards operating in accordance with the Hong Kong Convention, with businessmen having invested approximately 1.5 billion Taka per yard. Asserting that both the environment and industry must be safeguarded, Mintoo maintained that the previous waiting period heavily penalized investors. Meanwhile, Industries Ministry Secretary Abdun Naser Khan underscored the immense economic potential of the sector, noting that an estimated 6,500 ships are projected to become available globally for recycling by 2030, and increasing the number of green yards will enable Bangladesh to capture a larger share of the market.
Data from the Department of Environment indicates that Chattogram's Sitakunda yards currently dismantle 150 to 200 ships annually, with each vessel taking roughly six months to break down, employing 30,000 to 35,000 workers. Environmental experts maintain that under the Basel Convention, nations generating waste must take responsibility for it, arguing that dumping hazardous vessels from developed countries onto open beaches cannot be greened merely through concrete paving. Experts reiterate that sustainable ship-breaking requires specialized dry docks and the strict enforcement of both national and international regulations. Anonymous officials from the Department of Environment further cautioned that the regulatory rollback will severely weaken oversight, leaving authorities incapable of assessing or monitoring the true environmental footprint of individual yards.
