EU: New rules for a more sustainable EU automotive sector 

 

Recently, the EU Parliament gave its final approval of new EU circularity rules covering a vehicle’s entire lifecycle, from design to end-of-life treatment. 

On 13 July 2023, the Commission proposed a new regulation on circularity requirements for vehicle design and improved management of end-of-life vehicles, in line with the objectives of the European Green Deal and the circular economy action plan. 

The agreement which was reached by Parliament and Council at the end of 2025 was adopted recently with 437 votes in favour, 112 against and 20 abstentions. 

According to the new rules, all new vehicles must be designed so as to allow the easy removal of as many parts and components as possible. 

Plastics used in each new vehicle type will have to contain a minimum of 15% recycled plastic within six years and 25% within ten years. A minimum of 20% of this recycled plastic must come from materials recovered from end-of-life vehicles (ELVs) or used parts (the so-called “closed loop”). Based on feasibility studies, the Commission will be able to introduce targets for other materials in the future, such as recycled steel, aluminium, magnesium and critical raw materials. 

When selling a used vehicle, businesses (as opposed to private citizens) will be required an assessment that it is not an ELV or alternatively has a valid roadworthiness certificate. To avoid imposing unnecessary burdens on citizens, transactions between private persons will only require one of these two documents if the vehicle is declared a total economic loss or if the sale is concluded exclusively via an online platform. 

Three years after the entry into force of these new rules, extended producer responsibility will be introduced for manufacturers, i.e., they will have to cover the cost of the collection and treatment of vehicles that have reached their end-of-life stage anywhere in the EU. 

To address the issue of “missing vehicles” and prevent illegal treatment and dismantling, the law bans the export of vehicles declared non-roadworthy (applicable five years after the entry into force of the regulation). 

After Parliament’s green light, the new regulation has to be formally approved by the Council, before entering into force and being applied 24 months later. 

To find you more about vehicle regulations in the EU and vehicle circularity requirements, do not hesitate to contact the Institute for Global Automotive Regulatory Research.