EU Approves Landmark Circularity Rules for a More Sustainable Automotive Industry

The European Parliament has given final approval to a comprehensive new regulation. This regulation aims to transform the automotive sector into a more circular and sustainable industry. The legislation, adopted by a vote of 437 to 112, introduces requirements covering the entire lifecycle of vehicles. These requirements range from design and production through to end-of-life treatment and recycling.

Under the new rules, vehicle manufacturers will be required to design cars and vans so that parts and components can be more easily removed, reused, refurbished, and recycled. To increase resource efficiency, plastics used in new vehicle models must contain at least 15% recycled content within six years of the regulation entering into force, rising to 25% within ten years.

At least 20% of the recycled plastic must originate from end-of-life vehicles or reused automotive components, creating a closed-loop recycling system. The European Commission will also have the option to introduce future recycled-content targets for materials such as steel, aluminum, magnesium, and critical raw materials. This strengthens end-of-life vehicle management by introducing extended producer responsibility, requiring manufacturers to cover the costs of collecting and treating scrapped vehicles across the EU.

In addition, the export of vehicles deemed non-roadworthy will be prohibited. This helps to combat illegal dismantling and improve environmental standards. The measures are expected to support the objectives of the European Green Deal and the Circular Economy Action Plan. With approximately 6.5 million vehicles reaching end-of-life annually across the EU, the regulation represents a significant step towards a more sustainable and resource-efficient automotive value chain.

Source: Europa