Parliament and Council have reached a provisional agreement on new European Union rules aimed at increasing circularity in the automotive sector. The deal, announced early Friday, covers all stages of a vehicle’s lifecycle, from initial design to end-of-life treatment.
Under the draft agreement, new vehicles must be designed to allow authorised treatment facilities to easily remove as many parts and components as possible. The rules also set minimum targets for recycled plastic use in new vehicles: 15% within six years of the regulation taking effect and 25% within ten years. Of these targets, 20% must come from plastics recycled from end-of-life vehicles or parts removed during a vehicle’s use (“closed loop”).
The agreement includes provisions for future targets on recycled steel and aluminium, which will be introduced two years after the regulation enters into force, pending feasibility studies. The possibility of setting additional goals for critical raw materials will also be assessed.
When transferring ownership of used vehicles within the EU, sellers will need to provide either an assessment that the vehicle is not an end-of-life vehicle (ELV) or a valid roadworthiness certificate. For private individuals, this documentation is only required if the vehicle is declared a total economic loss or if the sale takes place exclusively online.
Manufacturers would assume extended producer responsibility three years after implementation of the rules, covering costs related to collecting and treating vehicles at their end-of-life stage. There are specific requirements for removing certain parts, liquids, fluids, and hazardous substances before shredding or compacting vehicles. National authorities are tasked with developing inspection strategies to detect illegal activities in ELV collection, treatment, and export.
To address illegal exports and clarify when a used vehicle qualifies as an ELV, negotiators agreed on an export ban for non-roadworthy vehicles that will apply five years after the regulation begins. Criteria for determining ELVs and required customs documentation are also outlined in the deal.
Co-rapporteurs Jens Gieseke (EPP, DE), from the Environment committee, and Paulius Saudargas (EPP, LT), from the Internal Market committee stated: “We are taking important steps to boost the automotive sector’s transition to a circular economy. We are advancing resource security, protecting the environment, and ensuring sustainability. To avoid overburdening the industry, we secured realistic targets and ensured less red tape and fairer competition.”
The agreement still requires formal approval by both Parliament and Council before it can become law.
The European Commission first proposed these measures in July 2023 as part of its efforts under the European Green Deal and circular economy action plan. In 2023 alone, EU manufacturers produced 14.8 million motor vehicles while registering 12.4 million new ones; currently there are about 285.6 million motor vehicles on EU roads with around 6.5 million reaching end-of-life each year.
