On 13 July 2023, the European Commission published a proposal for a regulation on end-of-life vehicles (ELV). In line with the European Green Deal and the Circular Economy Action Plan, the ELV proposal builds on and will replace two existing directives: Directive 2000/53/EC on end-of-life vehicles and Directive 2005/64/EC. The European Parliament and the Council will consider the proposal under the ordinary legislative procedure.

The automotive manufacturing industry is one of the largest consumers of virgin steel, aluminium, copper and plastics, but makes little use of recycled materials. Europe's automotive sector accounts for 10% of total plastic consumption, equivalent to 6 million tonnes a year. Although end-of-life vehicles are generally recycled at a high rate, scrap metal is of lower quality and only 19% of plastics are recycled. Electronics and composites are almost impossible to recycle. For both the environment and the economy, this is significant untapped potential.

With the introduction of EU Green Deal policies and major changes in the automotive industry over more than 20 years, the ELV Directive needs a systematic evaluation and revision to ensure it fits the current policy and industry context.

The proposed regulation is consistent with the objectives of the European Green Deal and the new Circular Economy Action Plan, aiming at a more sustainable and resilient automotive industry. It is closely related to and supports the implementation of several important legislative initiatives, including the Critical Raw Materials Act, the Battery Regulation, the Waste Framework Directive, the WEEE Directive and the Ecodesign for Sustainable Products Regulation.

Key content of the proposal

The primary objective of the revised regulation is to improve the circularity of vehicle design while strengthening the single market. The proposal sets out a series of requirements to ensure that new vehicles are designed in a way that facilitates recycling and reuse at the end of their life.

Second, the proposal aims to increase the use of recycled materials in new vehicles. New vehicles should contain at least 25% recycled plastic. The proposal also allows the Commission to set targets for recycled steel, recycled metals and aluminium following an appropriate assessment of their added value and feasibility.

The third objective is to increase the quantity, quality and value of materials reused and recycled from end-of-life vehicles. To this end, valuable parts and materials should be removed from end-of-life vehicles before shredding, and waste treatment should be improved to achieve high-quality recycling.

The fourth objective is to increase the collection of end-of-life vehicles so as to reduce the number of "missing vehicles". This will be achieved through new traceability and control measures.

The fifth objective is to ensure a fair distribution of the costs of managing end-of-life vehicles among economic operators. Producers must ensure that vehicles are properly treated at the end of their life.

Finally, the scope of the current legislation is progressively extended to other vehicle categories, including trucks, buses and motorcycles.

Questions and answers

Q: Why does the proposed regulation address the export of used vehicles?

A: The EU is the world's largest exporter of used vehicles. In 2020, 870,000 used vehicles worth EUR 3.85 billion were exported to third countries. Most vehicles were exported to Africa, Eastern Europe, Central Asia and the Middle East.

Although end-of-life vehicles are considered hazardous waste and their export from the EU to non-OECD countries is prohibited, this is not the case for used vehicles that have not yet formally reached the waste stage.

To address this situation, the proposed regulation establishes a new model under which only roadworthy vehicles (passenger cars, vans, trucks and buses) are entitled to be exported from the EU. To facilitate implementation, the proposal also clarifies the definition of end-of-life vehicles and introduces mandatory criteria to make it easier to distinguish waste vehicles from used vehicles.

Q: What impact will the proposed regulation have on the automotive industry and waste management operators?

A: In the medium and long term, the proposed measures will achieve energy savings at the manufacturing stage and reduce the EU automotive industry's dependence on raw materials, while ensuring that the transition to zero-emission mobility is sustainable and circular. The limited short-term impact relates mainly to the effort needed to increase the amount of recycled plastic and improve the treatment of end-of-life vehicles, which is part of extended producer responsibility. For the waste management sector, the proposed regulation creates revenues (added value of spare parts and recycled materials) and costs (investment in capacity and new technologies). The proposed regulation is expected to significantly modernise the EU dismantling, shredding and recycling industry while creating jobs and growth across Europe.

Q: What changes will the proposed measures bring to consumers and vehicle users?

A: Measures promoting the market for used spare parts will make these parts easier for consumers to obtain. They are much cheaper than new parts. This will make vehicle maintenance cheaper and extend vehicle life. Measures making vehicle design more circular (for example the use of recycled plastic) will lead to a slight price increase, with consumers expected to pay less than EUR 40 more for a new car.