The European Parliament has adopted a new regulation to establish circularity rules for vehicles, from their design to their final end-of-life treatment.
The legislation, which replaces the current End-of-Life Vehicles (ELV) Directive, received broad support on 9 September, with 431 MEPs voting in favour, 145 against and 76 abstentions.
The new measures are part of the European Union’s (EU) wider Green Deal and Circular Economy Action Plan, which aims to improve the sustainability of the automotive sector. They introduce binding targets for recycled content, enhanced producer responsibility and stricter rules on the export of used vehicles.
Of the 285.6mn motor vehicles on EU roads, 6.5mn reach their end of life every year, highlighting the scale of the challenge facing the automotive sector.
Manufacturers to bear some costs
The core of the regulation is a push for eco-design, mandating that new vehicles be designed for easier dismantling and the reuse of parts. Manufacturers will also face new, mandatory targets for recycled content in vehicles.
The new rules require that, within six years of entry into force, recycled plastic must make up 20% of the plastic in new vehicles, increasing to 25% within ten years if supplies are available at non-excessive prices. The Commission also aims to introduce targets for recycled steel and aluminium following a feasibility study.
“Parliament supports the circular economy in the automotive sector,” said Jens Gieseke, a co-rapporteur for the Environment Committee, in a statement. “We aim to ensure resource security, environmental protection and sustainability.”
Alongside design standards, lawmakers also agreed on financing obligations for producers. The new law expands extended producer responsibility (EPR), requiring manufacturers to cover the cost of collecting and treating vehicles once they reach the end of their life.
The new rules are set to create significant opportunities and challenges for companies working in and with the automotive sector, particularly those in the automotive aftermarket and recycling sectors. While large manufacturers may face high costs in redesigning production, smaller independent workshops and recyclers could benefit.
New vehicles must also be designed to allow easy removal of parts by authorised treatment facilities for reuse, recycling, remanufacturing or refurbishing. This requirement will make it more viable for companies to harvest and resell used parts, boosting the market for certified used parts and potentially leading to cheaper repairs for consumers.
However, businesses in the sector may also face heavier administrative demands to comply with reporting and treatment standards, which could stretch resources for smaller operators.
Disproportionate impact on truck and bus makers
The European Automobile Manufacturers’ Association (ACEA) has noted that the new rules mark progress on recycled content but stressed that truck and bus makers could face an extra burden due to the complexity of their supply chains.
“The regulation places disproportionate legal and financial risks on truck and bus makers, holding them accountable for bodywork they neither produce nor put on the market,” said Sigrid de Vries, ACEA’s director general, in a statement.
The new circularity rules will apply to all vehicles, except for special-purpose vehicles and those designed for the armed forces, emergency services or vehicles of special cultural interest.