Circular Economy EU Plans New Recycling Quotas for Vehicles

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The EU wants to reuse more raw materials from end-of-life vehicles—and prevent the export of valuable materials. A draft proposal is now available.

Enable more recycling from end-of-life vehicles: The European Parliament and the European Council have agreed on this in a draft. New vehicles should be designed "to ensure that authorized disposal facilities can easily dismantle as many parts and components as possible."

This means that every new vehicle type must contain at least 15 percent recycled plastic within six years of the regulations coming into force, and 25 percent within ten years.

Nearly a quarter, 20 percent, of these targets should consist of plastics recycled from end-of-life vehicles or from removed parts of still-functioning cars. This would correspond to a closed-loop system.

Targets for Recycled Steel And Aluminum

The committees also agreed that the Commission should introduce targets for recycled steel and aluminum after completing feasibility studies—two years after the regulation comes into force. Additionally, it will be examined whether introducing further targets for recycled critical raw materials is feasible.

Car Manufacturers to Bear Recycling Costs

Three years after the new regulations come into effect, car manufacturers would assume extended producer responsibility. This means they would have to cover the costs for the collection and treatment of end-of-life vehicles. Specific requirements would apply for the mandatory removal of certain parts and components, fluids, and hazardous materials prior to shredding or compressing.

National authorities would then be required to develop inspection strategies to detect illegal activities in the collection, treatment, and export of end-of-life vehicles.

Export Ban for "Scrap Cars"

To prevent the illegal handling and export of end-of-life vehicles and address the issue of "missing vehicles," negotiators agreed, according to the statement, on an export ban for non-roadworthy vehicles. The ban is to take effect five years after the regulation comes into force. The agreement specifies the criteria under which a used vehicle is classified as an end-of-life vehicle, as well as the required documents for customs authorities.

What's Next?

The preliminary agreement must be approved by the Parliament and EU member states before the new rules can come into force. Back in July 2023, the Commission proposed a new regulation on circular economy requirements for vehicle design, as well as improved management of end-of-life vehicles. This is part of the European Green Deal and the Circular Economy Action Plan.

In 2023, 14.8 million motor vehicles were manufactured in the EU, and 12.4 million vehicles were newly registered, according to the Parliament. There are 285.6 million motor vehicles on EU roads. Annually, around 6.5 million vehicles reach the end of their service life.

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