The European Parliament has thrown its weight behind sweeping new rules to force carmakers to design greener vehicles and take greater responsibility once the cars and trucks reach the scrapyard. The regulation on circularity faces tough negotiations with EU governments in the coming months.
Lawmakers approved the draft regulation (officially termed Regulation of the European Parliament and of the Council on circularity requirements for vehicle design and on management of end-of-life vehicles) on Tuesday 9 September with 431 votes in favor, 145 against and 76 abstentions. The proposal would overhaul the design, dismantling and recyclation of vehicles in Europe, in a bid to cut the sector’s environmental footprint and bolster resource security.
Resource security
At the heart of the plan are binding targets for recycled content in new cars. MEPs want all vehicles selling in the bloc to contain at least 20 per cent recycled plastic within six years of the law coming into force, rising to 25 per cent within a decade, if sufficient supply is available at reasonable cost. Commission would also explore similar targets for recycled steel and aluminum.
The new rules would also make it easier to strip cars of reusable parts. This invilvs the removal of items items like seats, electronics and metal components can by authorized facilities for reuse or remanufacturing. This is to affects around 6.5 million cars that reach the end of their life on EU roads each year.
Responsibility for dealing with those vehicles will increasingly fall on manufacturers. Three years after the rules take effect, carmakers would be required to cover the costs of collection and treatment under reinforced “extended producer responsibility” provisions. To clamp down on illegal waste exports, lawmakers also want a tougher distinction between second-hand vehicles and those considered end-of-life, with exports of the latter banned outright.
“Parliament supports the circular economy in the automotive sector,” said MEP Jens Gieseke (EPP/DEU), who co-led the file in the Environment Committee alongside Paulius Saudargas (EPP/LTU). “We are advancing resource security, protecting the environment, and ensuring sustainability. To avoid overburdening the industry, we secured realistic targets, and ensured less red tape and fair competition.”
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Varying levels of ambition
The Council of the EU, representing national governments, agreed its position earlier this summer, meaning trilogue negotiations with Parliament and the European Commission could begin in the coming weeks.
National ministers’ position asks for less ambitious goals, proposing a three-stage approach to the recycled plastics targe: 15% within six years, 20% within eight years and 25% within 10 years after the regulation enters into force. On the other hand, it includes heavy-duty trucks and two- or three-wheel bikes and quadricycles in its scope.
Parliament supports the circular economy in the automotive sector. — MEP Jens Gieseke (EPP/DEU)
Both the Parliament and the Coucil watered down the targets from the original proposal by the European Commission, which wanted to set the goal at 25 per cent of recycled plastics content already by 2030. Mr Saudargas highlighted this in his plenary speech on Monday, saying he thinks “we have achieved the necessary balance in the proposed compromise, advocating for realistic targets and a fair level playing-field for all the stakeholders in a broad automotive sector and beyond”.
The legislation is part of the European Green Deal’s push to embed circular economy principles across industries. In 2023, the EU produced 14.8 million new vehicles, while 12.4 million registered across the bloc. With 285.6 million cars already on the road, Brussels is under pressure to prevent mountains of waste as the automotive sector undergoes its green transition.
