With the Hong Kong Convention finally in force, the maritime world faces a reckoning – a Norwegian firm is backing its credit rating system to bring order to the chaos
After years of debate and delay, the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) officially entered into force in June 2025. Its arrival marks a watershed moment: for the first time, the global shipping industry is bound by a single, legally enforceable set of minimum standards for ship recycling. Yet, as the ink dries on new compliance deadlines and regulatory guidance, the industry finds itself at a crossroads.
The promise of the HKC is real: a world where shipbreaking no longer means environmental devastation and human risk. But the road to implementation is proving anything but smooth. Shipyards in South Asia, long the epicentre of the industry, face steep upgrades and shifting expectations. Owners and operators, meanwhile, are scrambling to map out compliance strategies before inspections and reporting requirements ramp up over the next 12 to 24 months. Even in Europe, where the EU Ship Recycling Regulation has been in force for years, the HKC’s global baseline is forcing a rethink of due diligence, documentation and yard selection.
Into this landscape steps YardScore, a Norwegian platform developed by Grieg Green, aiming to do for shipyard standards what credit ratings did for finance: create a transparent, credible and comparable metric that cuts through national differences and regulatory fog. In a key presentation at this year’s Riviera Responsible Ship Recycling conference in London, YardScore offers a new yardstick; one that promises to reward genuine progress and expose the laggards.
But as the industry pivots from voluntary codes to enforceable law, the question is not just whether shipyards can keep up, but whether tools like YardScore can help bridge the gap between regulation and reality. The next two years will be decisive: will the HKC’s promise translate into measurable change, or will roadblocks and inertia blunt its impact? For now, the race is on – and the stakes have never been higher.
A rising tide
The Hong Kong Convention, adopted by International Maritime Organization (IMO), is the first binding treaty to ensure ships, when recycled, do not pose unnecessary risks to health, safety or the environment. For the first time, the industry has a common language for discussing standards across hot work, confined spaces, hazardous materials, environmental monitoring – or in other words, the challenges that exist in every type of yard, globally.
Ambitious yards have invested heavily to meet the convention’s requirements, driving what YardScore’s developers describe as “massive development” in global capabilities. Critics may argue the convention is too lenient – it permits beaching, for instance – but its defenders contend that perfection is the enemy of progress. “Our approach is to ask consistent, fundamental questions: are the right systems in place, have the required procedures been implemented, and is there effective monitoring and control?” says Grieg Green managing director Elin Saltkjel. “For most high-standard repair yards, these are straightforward to answer. We have also tailored our questions to address the specific realities of repair yards, which differ from recycling operations.”
The yard stick: standardising a fragmented industry
The alternatives to the convention are far from clearcut. Repair and newbuilding yards operate under a patchwork of national regulations that vary wildly in quality and enforcement. Shipowners and operators must navigate this maze every time they need work done, often with little reliable information about what they are buying.
YardScore’s approach is methodical, comprehensive and highly attentive to detail. The platform asks hundreds of questions about yard operations, from basic compliance to best practices. Binary yes-or-no answers minimise ambiguity. Physical inspections, not just paper reviews, verify claims.
This approach reflects hard-won industry wisdom. In the past, multiple yards have submitted identical documentation, indicating widespread copying of compliance materials. “We require comprehensive evidence for every response, which is carefully reviewed before approval,” says Ms Saltkjel. Site audits are an integral part of the process. While some aspects can be verified through documentation, others require photographic or video evidence. “Today’s digital tools allow us to authenticate images and confirm their origin, ensuring the integrity of the verification.” The goal is credibility, not just coverage, says Ms Saltkjel, adding the system avoids free-text answers.
Market dynamics: a new commercial logic
YardScore’s commercial model reveals telling industry dynamics. Yards are evaluated for free; shipowners pay for access to the scores. This reflects economic reality: shipowners are the ones who benefit from standardised information, says Ms Saltkjel, so it follows they should pay for it. It also creates the right incentives: yards compete for better scores to attract customers.
Early adoption patterns are revealing. YardScore’s customer base is concentrated in northern Europe, perhaps unsurprising given its Norwegian origins and the region’s highly regulated environment. Yet Asian yards – the backbone of global shipbuilding and repair – have shown keen interest. They see the platform not as external scrutiny but as a marketing opportunity, observes Ms Saltkjel. “Asian yards can struggle with preconceptions about quality and safety standards. A credible third-party score could help them demonstrate their capabilities to sceptical Western customers.”
The limits of voluntarism
Yet voluntary systems have inherent limitations. Only yards confident in their standards are likely to participate. Poor performers may simply avoid evaluation while maintaining their customer base among cost-focused shipowners. Ms Saltkjel is candid, “Participation is voluntary, and there will always be owners who are content with minimal compliance. However, operators with specialised or high-value vessels will seek out the highest-quality yards. We believe internal competition among yards will drive progress.” To encourage participation from underperforming yards, YardScore will allow these yards to remain anonymous until they reach an acceptable performance level. This approach enables them to use YardScore as a tool for improvement without public exposure.
YardScore’s transformative potential depends on achieving sufficient scale to make non-participation commercially disadvantageous. Credit rating agencies faced similar challenges but eventually became indispensable infrastructure for global finance.
The YardScore approach ultimately reflects broader trends in global commerce. Standardised evaluation systems are becoming essential infrastructure in industries from agriculture to manufacturing. Consumers and regulators demand transparency about supply chains. Companies that cannot demonstrate responsible practices face reputational and commercial risks.
“Our goal is to create genuine value for both shipyards and shipowners. And we recognise that market forces, not regulations, will ultimately drive change,” says Ms Saltkjel. “YardScore is designed to be a positive force, offering clarity and comparability in a complex industry. By using the Hong Kong Convention as a universal baseline, we provide a consistent framework for all yards,” she concludes.
