European Regulation on End-of-Life Vehicles: Towards a More Circular Automotive Industry
The European Parliament has approved a proposed regulation that seeks to strengthen the circular economy in the automotive sector by regulating the entire lifecycle of vehicles, from their design to their end-of-life management.
What exactly is proposed?
Some of the highlights of the approved text are:
- Designing new vehicles in such a way that authorized facilities can easily remove as many parts and components as possible, allowing for their reuse, recycling, or refurbishment when technically and economically feasible.
- Establishing minimum targets for new vehicles to contain recycled plastic: at least 20% within six years of the regulation’s entry into force, and 25% within ten years, if recycled plastic is available at reasonable prices.
- Also consider introducing similar targets for other key materials such as steel, aluminum, and their alloys, once their economic and technical viability has been verified.
- Better differentiation between “used vehicles” and “end-of-life vehicles,” with a ban on exporting vehicles classified in the latter category.
Motivations and Challenges
Why now?
- The aim is to reduce the environmental impact of the automotive sector, both during the production stage and during vehicle disposal.
- Promote greater sustainability in the automotive recycling industry in Europe.
- Commit to resource conservation and reduce waste through regulations that favor recycling, reuse, and eco-friendly design.
What challenges are faced?
- Ensure sufficient recycled plastic is available at affordable prices to meet the targets.
- Avoid excessive burdens on the automotive industry, especially for small manufacturers, without losing the environmental momentum.
- Ensure that collection, treatment, recycling, and remanufacturing infrastructure is prepared for the new requirements (both technical and logistical).
- Clearly define the criteria for distinguishing a “used” vehicle from an “end-of-life” vehicle to avoid legal ambiguities and unfair practices.
Implications for Spain
Although the regulation is European, its effects will have a significant impact on Member States, and Spain will be no exception:
- Vehicle manufacturers and importers will have to adapt to the new design, material selection, and post-sale responsibilities.
- Waste and vehicle managers must also prepare to comply with the regulation, both in terms of infrastructure and operations.
- It could represent an opportunity for recycling, remanufacturing, and reuse companies, as well as for research into new recycled materials and less polluting techniques.
- National and regional regulations may require adjustments to incorporate these requirements or to monitor their compliance.
What’s next?
The Parliament has already approved its position. Now:
- The EU Council and the European Commission will enter into interinstitutional negotiations to agree on the final text.
- The final drafts will need to be closely monitored to see if the proposed targets are maintained or if changes are made to soften them.
- Also key will be monitoring the schedule: when the first obligations come into force, what actual deadlines manufacturers have, and how much time there is to meet each target.
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