European Parliament Adopts New Rules for Vehicle Circularity
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The European Parliament has given final approval to a new regulation introducing circular economy principles into the European Union’s automotive sector, with the aim of reducing resource consumption, increasing the use of recycled materials, and improving end-of-life vehicle management.
The new rules cover the entire life cycle of vehicles – from design and production to recycling and treatment after decommissioning. One of the key innovations is the requirement that all new vehicles be designed to enable the easy removal of as many parts and components as possible, thereby facilitating their reuse and recycling.
The regulation also sets mandatory targets for the use of recycled plastics in new vehicles. Manufacturers will be required to ensure that the plastic in each new vehicle type contains at least 15% recycled content within six years of the rules entering into force, and 25% within ten years. At least one-fifth of that recycled material must come from vehicles that have reached the end of their life or from reused automotive parts.
Based on future feasibility analyses, the European Commission will have the option to introduce similar targets for other materials, including steel, aluminium, magnesium, and critical raw materials.
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The new rules also bring changes to the second-hand vehicle market. When selling used cars, businesses will have to prove that the vehicle is not waste or that it holds a valid technical inspection certificate. Simplified rules are foreseen for transactions between private individuals in order to avoid additional administrative burdens for citizens.
Special attention has been given to end-of-life vehicle management. Three years after the regulation takes effect, manufacturers will assume extended responsibility for financing the collection and treatment of scrapped vehicles across the European Union.
The regulation also tightens rules for the export of used vehicles. Five years after its entry into force, the export of vehicles that are not roadworthy will be banned, in an effort to prevent illegal processing and dismantling of vehicles, as well as the problem of so-called “missing vehicles.”
According to European Commission data, in 2023, 14.8 million motor vehicles were produced in the European Union, while 12.4 million new vehicles were registered. There are currently more than 285 million motor vehicles on EU roads, and around 6.5 million of them reach the end of their useful life each year.
Following its adoption by the European Parliament, the regulation now needs to be formally confirmed by the EU Council. The new rules will begin to apply 24 months after their entry into force.
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