Brussels: Europe and the Arab World

The European Union institutions in Brussels announced that the Presidency of the Council of Member States and representatives of the European Parliament reached an agreement in principle on Friday regarding the regulation on recycling requirements in vehicle design and the management of end-of-life vehicles. The new rules will replace the two existing directives and will establish requirements to ensure that new vehicles are designed in a way that supports their reuse, recycling, and recovery.

The new regulation is a cornerstone of the European Green Deal and the Circular Economy Action Plan, and aims to transform the automotive sector into a more sustainable model. It introduces measures covering the entire vehicle lifecycle, from design and production to end-of-life processing, with the dual objective of enhancing environmental protection and ensuring the proper functioning of the single market. A key focus is on addressing the persistent problem of "lost vehicles" by strengthening traceability and monitoring procedures.

The European statement quoted the current rotating presidency of the EU, represented by Magnus Heunicke, the Danish Minister of the Environment, as saying: “This preliminary agreement represents an important step towards a circular economy for the European automotive sector. We have succeeded in reaching a robust framework that closes loopholes, ensures that valuable materials remain within the EU economy, and limits the export of polluting and unroadworthy vehicles to other countries. This new system will drive innovation in sustainable design and create a stronger and cleaner market for materials and components.” Key elements of the agreement:

Scope of the system:
The new system significantly expands the scope of previous directives to include more vehicle categories, thus covering a larger share of the EU vehicle fleet and its components to meet the requirements of the circular economy.
It continues to apply fully to passenger cars and light commercial vehicles, but the agreement extends the remediation requirements (collection, depollution, and mandatory removal of parts) to include all ordinary heavy vehicles (such as trucks), motorcycles, and special-purpose vehicles (small and heavy). Pollution and mandatory removal of parts) will apply to all ordinary heavy vehicles (such as trucks), motorcycles, and special-purpose vehicles (both small and heavy).

Legislators agreed to exempt manufacturers with limited production of special-purpose vehicles.

Circular design and recycled content
Legislators established requirements to ensure that new vehicles are designed to facilitate the recycling, reuse, and remanufacturing of parts and components. A key element of the agreement is the establishment of mandatory targets for recycled content, particularly plastics, in new vehicles. These targets for recycled plastics will be phased in over ten years:
15% within six years
25% within ten years
At least 20% of this recycled plastic must come from closed recycling facilities (i.e., materials extracted from end-of-life vehicles) to ensure that valuable materials are retained within the EU's circular economy.

Based on a feasibility study to be completed within one year of the regulation's entry into force, the Commission is required to establish future targets for other materials, such as recycled steel, aluminum, and magnesium, in addition to the primary raw materials. A delegated law. The focus is on ensuring these objectives are achieved through the use of consumer waste.

The status and traceability of end-of-life vehicles
Around 3.5 million vehicles disappear from EU roads every year without a trace, having been exported, dismantled, or disposed of illegally. To address the problem of "lost vehicles" and illegal dismantling, the agreement introduces clearer rules for distinguishing between a used vehicle and an end-of-life vehicle.

A clear set of criteria has been established to determine when a vehicle is considered waste (i.e., an end-of-life vehicle). Once a vehicle meets these criteria, it must be processed at an approved processing facility and may not be exported or resold as a used vehicle.

The agreement also establishes a strict framework for the transfer of ownership of vehicles between economic entities. For transfers between individuals, a risk-based approach is adopted, requiring documentation in cases where vehicles are likely to be lost, such as:
An insurance company declaring the vehicle a total economic loss; or
A sale completed via an online platform without physical delivery of the vehicle between the buyer and seller.

Extended producer liability
This agreement significantly strengthens the principle of extended producer liability, making producers financially and regulatoryly responsible for The entire lifecycle of their vehicles.

This responsibility includes promoting circular design and ensuring free returns and proper processing of all end-of-life vehicles.

To ensure the system's effectiveness across the EU Single Market, it establishes an extended cross-border producer responsibility mechanism, guaranteeing that producers remain financially responsible for processing their vehicles regardless of the Member State where the vehicle reaches the end of its life.

Exports
The system prohibits the export of used vehicles that are no longer roadworthy, ensuring the EU complies with its obligations not to contribute to pollution in other countries and to keep valuable materials within its territory. Lawmakers have agreed that the ban will take effect five years after the system enters into force.

Regarding the next steps, the European statement said, "The provisional agreement must now be ratified by the Council and Parliament before formal adoption. The system will enter into force two years after its entry into force."  

Over six million end-of-life vehicles (vehicles that have reached the end of their lifespan and are treated as waste) are produced in the EU annually. Poor management of these vehicles leads to pollution and the loss of tons of materials. The automotive industry is one of the most resource-intensive sectors in the EU and a major consumer of essential raw materials such as steel (over 7 million tons annually), aluminum (around 2 million tons annually), copper (6% of total EU consumption, used in the manufacture of automotive parts), and plastics (6 million tons annually), yet it uses very little recycled material.

Current regulations have improved the collection of end-of-life vehicles and increased recycling to around 85% of their contents. However, most of this material is shredded metal waste that is not properly sorted or utilized, and only 19% of the plastics extracted from these vehicles are recycled. Furthermore, current legislation does not cover trucks, buses, or motorcycles.