EU Strikes Deal on Circularity for End-of-Life Vehicles

European Commission

The European Commission welcomes the provisional agreement reached today between the European Parliament and the Council on the Commission's proposed Regulation on End-of-Life Vehicles , covering the design, production and end-of-life treatment of vehicles.

The automotive industry is one of the largest users of raw materials, such as steel, aluminium, copper, and plastics. A better collection, dismantling and treatment of vehicles will ensure that more valuable resources are recovered and kept within the EU.

The End-of-Life Vehicles (ELV) Regulation will contribute to our environmental and climate objectives and at the same time strengthen the EU's resilience to supply-chain disruptions and reduce its dependence on imports. For example, it is estimated that the new measures under the ELV Regulation would enable the recycling and reuse of hundreds of tons of rare earth materials, as well as around 5-6 million tonnes of steel, 1-2 million tonnes of aluminium, and 0.2-0.3 million tonnes of copper. This is essential to support a competitive, sustainable and circular European automotive industry.

Key measures

  • Vehicles must be designed to ensure easier dismantling. Manufacturers must provide clear and detailed instructions for removing and replacing parts both during use and at end-of-life.
  • Introduction of Europe's first-ever mandatory targets for recycled plastic content in vehicles to boost demand for recycled materials: at least 25% of plastics used in vehicles must be from recycled material (after 2036), and 20% of that share must come from ELVs. This will boost recycling and guarantee a level playing field, as rules on recycled content will also apply to both vehicles in the EU and those imported from outside the EU. The Directive allows the Commission to set future recycled content targets for other materials.
  • Improved treatment standards for the end-of-life of vehicles will allow the recovery of more and higher-quality material. At least 30% of plastics from ELVs must be recycled.
  • Measures encouraging reuse, remanufacturing and refurbishment will increase the availability of second-hand spare parts, benefiting consumers through more affordable repair options.
  • Strengthened producer responsibility will be implemented through harmonised national Extended Producer Responsibility schemes. These will ensure the proper financing of waste treatment of ELVs and promote higher-quality recycling.
  • Enforcement will be reinforced, including through more inspections, a clearer distinction between old and end-of-life vehicles. A requirement that only roadworthy cars can be exported outside the EU has also been agreed. This will ensure that ELVs, and the materials they contain, remain within an environmentally sound recycling loop.

Next steps

After the European Parliament and the Council have formally adopted the new Regulation, it will enter into force 20 days after its publication in the Official Journal of the EU.

Background

Each year in the EU, 3-4 million vehicles 'disappear', meaning they are deregistered but their final destination - like being scrapped at an authorised treatment facility or exported - is not reported to authorities.

Inadequate handling of vehicles at the end of their life results in lost value and pollution. The evaluation of the existing EU legislation has shown that considerable improvements are needed to boost the transition of the automotive sector to a circular economy.

To address these issues, the Commission proposed a new End-of Life Regulation in July 2023 .

The proposed Regulation is closely linked to and supports the implementation of several important initiatives, including the Critical Raw Materials Act , the Industrial Action Plan for the European Automotive Sector , the European Steel and Metals Action Plan and the RESourceEU Communication . It is also in line with upcoming initiatives such as the upcoming Circular Economy Act.

With this Regulation, a proportionate set of criteria are defined to determine whether a used vehicle should be considered as an end-of-life vehicle and is therefore covered by the requirements of the new Regulation. In principle, a vehicle shall be considered as an end-of-life vehicle when it is totally irreparable. However, vehicles of historic interest are excluded from the current EU legislation and are outside the scope of the new Regulation proposal.

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.