TRAN - August 1, 2025 - Canada Infrastructure Bank’s financing of new vessels for BC Ferries

13. PIC - Ship Recycling in Canada

Location: British Columbia and National

Issue/Source: Ship Recycling in Canada, and Union Bay, B.C.

Date: July 2025

SUGGESTED RESPONSES

  • The marine transportation industry is vital to the Canadian economy. Ensuring the safe and environmentally sound recycling of ships at the end of their life is a shared responsibility.
  • Transport Canada is aware of the need for more ship recycling services in Canada in the coming years, as well as access to responsible ship recycling abroad.
  • There are no federal laws or regulations that require a specific permit or authorization to engage in ship recycling activities in Canada.
  • Ship recycling operations are overseen by various departments and levels of government.
  • Transport Canada is currently considering relevant international treaties and approaches being taken in other countries to determine if there are opportunities to improve Canada’s ship recycling framework.

IF PRESSED

  • The Government of Canada is aware of the operation at Union Bay and is taking this issue seriously.
  • Transport Canada is responsible for the Canadian Navigable Waters Act, which applies to vessels or activities that are impeding navigable waterways, which is not the case here.
  • Other government departments have responsibility with respect to potential water quality issues and fish habitat.
  • Provinces and territories are responsible for the protection of workers at industrial sites and the management of hazardous waste produced when a ship is recycled.
  • So far, Canada has not taken a decision to join the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, recognizing that doing so would also implicate provinces and territories.
  • Canada remains engaged in discussions with other countries on the global regulatory framework for ship recycling, and any implications for ship recycling here in Canada.