The EU advances new vehicle design regulations for circularity in the automotive sector
New rules approved by EU committees are to enforce manufacturers' responsibility for end-of-life vehicles and to increase recycled content in cars to 20 per cent in six years.
This week, the Environment and Internal Market Committees jointly advances new regulations to manage end-of-life vehicles (ELVs), covering the entire life-cycle.
The European Commission released the draft proposal on 13 July 2023, aligning with the European Green Deal and the Circular Economy Action Plan. On Monday, the proposal was approved with 79 votes in favour, 27 against and 11 abstentions. The European Commission expects to adopt the report in September’s plenary session where it will be put to a vote by the full parliament.
The regulations require manufacturers to design vehicles so that as many parts and components as possible can be easily removed at authorised treatment facilities. This aims to increase the refurb, replacement, reuse, remanufacturing and recycling of parts.
The proposed regulations require that manufacturers must not utilise software updates to inhibit the removal and repair of parts and components. This anti-repair practice risks software obsolescence in components, meaning they cannot be reused or repaired independently.
Manufacturers must increase recycled plastic
The proposed regulations require a minimum level of 20 per cent recycled plastic used in vehicles instead of virgin material six years after they are introduced. MEPs also set a further target of taking this above 25 per cent in 10 years, subject to the feasibility of parts made from recycled polymers.
According to the European recycling industry association (EuRIC), by volume, cars in the EU are currently 50 per cent plastic and, in most cases, a very small amount is recycled plastic.
In the EU, around 6.5 million vehicles annually reach end-of-life, but only a fraction are dismantled at an EU authorised treatment facility (ATF). For example, in Germany, only 20 per cent of deregistered vehicles end up at ATFs for dismantling. The remaining vehicles are likely taken to uncertified dismantlers or scrapyards, abandoned or illegally exported.
An issue also lies with limited vehicle recycling infrastructure. Fewer than 10 per cent of EU’s recycling facilities are able to efficiently recycle and sort plastic from end-of-life vehicles. The 10-year target is intended to support the industry in the long term by stimulating investment.
In its ambition to achieve extended producer responsibility, the proposal requires the end-of-life recovery of liquids, parts containing refrigerants, gases and other hazardous substances be intercepted before vehicles are shredded.
New measures to combat illegal exports
MEPs also plan to clamp down on member states to monitor end-of-life treatment facilities through regular inspections for illegal activity. A study by the German Federal Environment Agency estimated that in the EU, between 3.4 million to 4.7 million end-of-life vehicles are illegally exported each year. This is motivated by profiteering ELV operators avoiding the costs of properly recovering parts.
These deregistered vehicles are likely illegally exported or treated, causing environmental damage, resource inefficiency and economic harm. Between 20 and 55.2 million litres of hazardous non-fuel liquids are potentially released into the environment due to components such as waste oil, refrigerants and heavy metals.
In a bid to reduce these waste exports, only used vehicles classified as ‘not end-of-life’ can be exported. They must be accompanied by required documents for customs clearance which are clarified in the proposal.
Cars and vans targeted first
The regulations aim to initially target cars and vans, effective one year after they are enforced. The rules will apply to buses, heavy-duty vehicles, trailers, motorcycles, quads, mopeds and mini cars . Special purpose vehicles and vehicles of historical interest are also to be exempt from the regulations, and MEPs are to also exempt vehicles used by the armed forces or emergency services and vehicles of special cultural interest.
Co-rapporteurs Jens Gieseke (EPP, DE – ENVI) and Paulius Saudargas (EPP, LT – IMCO) said: "Today’s committee vote is a success: the Parliament compromise, supported by a broad majority, promotes a circular economy in the automotive sector. It advances resource security, protects the environment, and ensures sustainability. To avoid overburdening the industry, we secured feasibility with realistic targets, less red tape, and fair competition. A solid basis for the plenary vote in September."
