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They also called on the government to re-categorize the industry to orange from existing red, saying that they need an additional 2-3 months to get cutting permission from the environment ministry only for this categorization.
The industry stakeholders raised the demands at a roundtable titled 'Challenges and Possibilities of Ship Recycling in Bangladesh', organised by Bangladesh Ship Breakers and Recyclers Association (BSBRA) at a city hotel.
Former commerce minister Amir Khasru Mahmud Chowdhury, Norway Ambassador in Dhaka Hakon Arald Gulbrandsen and Deputy Head of Mission of Dutch Embassy in Dhaka Thijs Woudstra, among others, spoke at the event.
Speaking as chief guest, Mr Chowdhury said the government should play the role of facilitator for the growth of any industry, especially ship breaking and recycling, rather than only regulating them.
"Bangladesh has to set a target to cut 30 per cent of the expected 15,000 ships to be dismantled by 2030. Businesses and the government should set a target to cut some 5,000 ships in the next 10 years," he said.
The government should develop a support system to grab the opportunity instead of hindering the growth of the industry, he added.
Citing examples of the garment industry, he said that initially when an industry starts growing, it faces many problems which should be addressed to help flourish the industry.
Norway and the Netherlands are here in the country with various programmes, he said, adding that they are here providing solutions to the problems as Bangladesh has potential.
He alleged that the government is not playing the role of an enabler rather playing the role of a regulator and added that Bangladesh is an overregulated country and all have to fight to remain out of such regulation.
He raised the question how businesses would run in such a situation and stressed on de-regulation of trade.
Trade bodies and associations must be self-regulated and the government should monitor them as the watchdog, he said, adding that in future they would 'seriously' be de-regulated to ensure good governance and growth of the economy.
Mr Chowdhury also said that it is the government that has to take initiatives to provide required support ranging from technical to financial to workers' issues, taking climate change mitigation and adaptation into consideration.
Norway Ambassador in Dhaka Hakon Arald Gulbrandsen said the industry faces several challenges including environmental hazards, safety concerns, and regulatory compliance.
"At the same time, there are opportunities to make ship recycling more sustainable and more profitable," he said.
Explaining the challenges, he said there are global concerns of environmental and labor standards that put pressure on Bangladesh's ship-breaking and recycling industry.
The reasons are ship breaking releases of hazardous substances such as asbestos, heavy metals and oil residues leading to marine and soil pollution, and that of a proper waste management and treatment of the hazardous waste that exacerbates ecological risk and damage, he added.
Citing other occupational health and safety risks, he said workers are not only exposed to the toxic materials in the health sector, unsafe working conditions and proper trade shortages still exist in some yards which could be reduced.
He also noted that many yards are heavily relying on low-skilled manual labour, increasing the risks of accidents while Bangladesh has yet to fully comply with the HKC.
Mr Gulbrandsen said the industry suffers from lack of government support for modernisation and technological upgrade, inconsistent policies and proper enforcement of regulations in the progress of all sustainable ship recycling.
India and Turkey have adopted safer and greener ship recycling methods, he noted, adding that mechanisation and improved waste management can enhance efficiency and reduce risks of the local recycling industry.
"Bangladesh's ship recycling has great economic potential, but it must overcome significant environmental safety and regulatory challenges," he noted.
Hubert Blom, programme manager of green growth and climate change, EU Delegation to Bangladesh, said Bangladesh's ship breaking and maritime sector is extremely important to the European Union.
Terming the local ship breaking industry 'important sector for Bangladesh', he said that to stay competitive, the sector will need to comply with the HKC.
BSBRA acting president Zahirul Islam said Bangladesh, in June 2023, ratified the HKC for the safe and environmentally sound recycling of ships and its enforcement would start on June 26 this year, meaning all yards have to be compliant by this time.
He urged the government to extend the HKC enforcement time until 2030 to help all shipyards become compliant. He said some seven have so far received green certification while additional 15 are under the process.
Bangladesh remained the top ship breaker during the last decade, he said adding the industry has been facing a number of challenges including absence of green financing, high rate of US dollar and bank interest rate.
He said an additional investment of US$5.0-10 million is required to make a yard compliant in line with the HKC while the banks are not willing to invest.
Moreover, due to red categorization of the industry, they need additional two to three months to get cutting permission from the environment ministry, he alleged.
Despite having potential, the number of active ship yards now stood at 40 from 200, he added, demanding government's support to help flourish the sector that is the primary source of raw materials for steel and re-rolling mills and construction sector.
Mohammad Ali Shahin, coordinator of YPSA, said they have been pressing for a long time since 2009 to comply with HKC and some entrepreneurs have finally understood the need.
Still there are some sub-standard yards that need to be compliant and government support is needed for the same, he said, adding: "We also want a ship recycling industry here in Bangladesh but in a safer and environmentally sound way."
Speaking there, labour leader Nazim Uddin said Bangladesh is competing with big competitors like China, Pakistan and India and stressed the need for measures to help sustain the industry.
He, however, proposed for trade representation in the board formed for the monitoring of the ship recycling industry.