Trade bodies call for stronger recycled content targets in EU vehicle legislation

The European Recycling Industries’ Confederation (EuRIC) and the European Waste Management Association (FEAD) have called on policymakers to introduce specific measures in the upcoming End-of-Life Vehicles Regulation (ELVR), following recent fines imposed on car manufacturers for operating a cartel that hindered automotive recycling practices.

In a joint statement issued today (15 April 2025), the two trade bodies emphasised that the ELVR, expected to be finalised in 2026, represents a critical opportunity to establish robust safeguards against anti-competitive practices while boosting circularity in the automotive sector.

The associations have called for independent oversight of producers and their Producer Responsibility Organisations (PROs), to ensure that proposed Extended Producer Responsibility (EPR) rules cover the entire recycling value chain, and that manufacturers cover the full costs of ELV recycling while recyclers retain ownership of valuable recovered materials.

“Creating a circular automotive sector requires more than just commitments; it demands a robust regulatory framework that promotes fair, transparent practices and ensures the uptake of recycled materials,” the organisations stated in their joint call to action.

Their intervention follows the European Commission’s landmark decision earlier this month to fine 15 major car manufacturers and the European Automobile Manufacturers’ Association (ACEA) €458 million for participating in a cartel concerning end-of-life vehicle recycling that operated from 2002 to 2017.

Cartel limited recycling information and suppressed costs

The Commission’s investigation revealed two substantial anti-competitive practices. First, manufacturers colluded not to pay vehicle dismantlers for processing end-of-life vehicles (ELVs), following what they termed a “Zero-Treatment-Cost” strategy. This agreement violated the objective of the ELV Directive 2000/53/EC, requiring car manufacturers meet necessary costs to ensure free take-back of vehicles.

Second, the companies agreed not to compete by promoting or advertising information related to the recycling performance of their vehicles, particularly the percentage that could be reused, recycled, or recovered, and the amount of recycled content used in new vehicles. This approach meant consumers were not easily able to factor in recycling performance when buying a new car.

Mercedes-Benz avoided a fine by revealing the cartel under the Commission’s leniency programme, while other manufacturers, including Volkswagen Group, Stellantis, BMW, and Ford, received various reductions for cooperation.

Parallel fines in the UK

In a parallel action, the UK’s Competition and Markets Authority (CMA) fined 10 car manufacturers and two trade bodies, including ACEA and the Society of Motor Manufacturers and Traders (SMMT), a total of £77.7 million for breaching UK competition law.

The CMA’s investigation found identical anti-competitive behaviours affecting the UK market, with manufacturers illegally agreeing not to advertise if their vehicles exceeded the minimum recyclability requirement of 85 per cent, and conspiring to avoid paying for recycling services.

Lucilia Falsarella Pereira, Senior Director of Competition Enforcement at the CMA, said: “Agreeing with competitors the prices you’ll pay for a service or colluding to restrict competition is illegal. This kind of collusion can limit consumers’ ability to make informed choices and lower the incentive for companies to invest in new initiatives.”

Calls for independent oversight and recycled content targets

In response to these revelations, EuRIC and FEAD have outlined several critical measures they believe must be incorporated into the forthcoming ELVR.

First, they call for the establishment of independent oversight to monitor the operations of producers and their Producer Responsibility Organisations (PROs) to prevent market distortions and conflicts of interest.

Second, they emphasise that EPR alone will not provide a complete solution. Where an EPR scheme is in place, the entire recycling value chain – from Authorised Treatment Facilities (ATFs) to mechanical recyclers with shredding and post-shredding technologies – must be included in governance to ensure effective and transparent recycling practices.

Third, they insist manufacturers must cover the full costs of ELV recycling, including dismantling and treatment, with recyclers retaining ownership of valuable recovered parts and materials.

To improve circularity, the associations advocate maintaining the proposed 25 per cent recycled content target for plastics in ELVs, based on post-consumer waste. They specifically warn against allowing pre-consumer waste and biobased plastics to count toward this target, which they say could “strongly undermine its effectiveness.”

Similarly, they are calling for the introduction of a mandatory recycled content target for steel in automotive manufacturing, as steel remains the principal material in vehicle production. This target would drive investment and improve the quality of steel recovered from ELVs.

“The recent announcement of Commission decision against car manufacturers and ACEA shows the need for change,” the joint statement emphasised. “To protect recyclers’ efforts, boost circularity, and guarantee the use of recycled materials, the EU must act decisively.”

ELVR to replace existing directives

The upcoming ELVR, proposed by the European Commission in July 2023, aims to replace the current ELV Directive 2000/53/EC and Directive 2005/64/EC on vehicle type-approval regarding reusability, recyclability, and recoverability.

The regulation will significantly expand its coverage beyond passenger cars to include motorcycles, lorries, and buses, ensuring all vehicle types are subject to proper end-of-life treatment.

The proposed regulation includes requirements for vehicles to be designed for easier dismantling, reuse, and recycling; the introduction of a “circularity passport” to track materials and facilitate recycling; strengthened Extended Producer Responsibility (EPR), making manufacturers financially responsible for the full costs of ELV recycling; enhanced transparency in reporting recycled content and tracking ELVs; and measures to prevent vehicles from going “missing” and to stop the export of non-roadworthy vehicles.

The regulation is currently under discussion by the European Parliament and Member States, with final adoption expected in 2026.

While the European Commission has proposed a 25 per cent recycled content target for plastics, advocacy groups including Transport & Environment have called for mandatory steel targets, suggesting 40 per cent green steel (covering both scrap and green primary steel) in new cars by 2030, rising to 75 per cent by 2035 and 100 per cent by 2040.

The UK’s current framework, implemented through the End-of-Life Vehicles Regulations 2003 and the End-of-Life Vehicles (Producer Responsibility) Regulations 2005, includes producer registration and responsibility for take-back and recycling costs, recovery and recycling targets, limits on hazardous substances, and requirements for Authorised Treatment Facilities (ATFs).