Circularity requirements for vehicle design and management of end-of-life vehicles

The European Parliament adopted by 437 votes to 112, with 20 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on circularity requirements for vehicle design and on management of end-of-life vehicles, amending Regulations (EU) 2018/858 and 2019/1020 and repealing Directives 2000/53/EC and 2005/64/EC.

The European Parliament adopted its position at first reading by amending the Commission's proposal as follows:

Opportunities for reusing, recycling and repurposing vehicles

Each vehicle belonging to a type-approved vehicle from the first day of the month following a period of 72 months from the date of entry into force of the regulation must be constructed in such a way that it is: a) reusable or recyclable to a minimum of 85% by mass; b) reusable or recoverable to a minimum of 95% by mass.

No later than 18 months from the date of entry into force of the regulation, the Commission will draw up a report on the presence of substances of concern in vehicles in order to determine to what extent they have a negative impact on the reuse and recycling of materials or have adverse effects on the environment or health.

Minimal recycled content of vehicles

The plastics used in each new type of vehicle must contain at least 15% recycled plastic within six years and 25% within ten years. At least 20% of the recycled plastic target must come from end-of-life vehicles or from parts/components recovered during the vehicle's use.

The recycled content must be recovered from post-consumer waste that has been recycled: a) in an installation located in the Union, or, b) from 48 months after entry into force, in an installation located in a third country complying with the requirements of Annex XIII.

No later than 24 months from the date of entry into force, the Commission will assess the expected impact on world trade, as well as on the recycling and automotive sectors of the Union, and will report its assessment to the European Parliament and the Council.

The Commission will adopt, within 23 months, a harmonised method for calculating and verifying recycled content.

Within 12 months, the Commission will assess the possibility of imposing a minimum proportion of recycled steel in vehicles. Within 24 months, the Commission must: (i) set a minimum proportion of post-consumer recycled steel; and (ii) define a method for calculating and verifying this minimum. The obligation must enter into force no later than 84 months after the entry into force of the regulation.

Within 35 months, the Commission will assess the feasibility of establishing a requirement for the minimum share of: a) magnesium and its alloys, recycled from pre-consumer and post-consumer waste, which must be present in vehicle types; and b) neodymium, dysprosium, praseodymium, terbium, samarium, nickel, cobalt or boron recycled from post-consumer and, where appropriate, pre-consumer waste, which must be present in permanent magnets.

Digital circularity vehicle passport

Within 72 months from the entry into force of the Regulation, each vehicle placed on the market will have a Digital Circularity Vehicle Passport, accessible free of charge and containing, in a digital format, the following: i) information on the extraction and replacement of parts, components and materials present in the vehicle; ii) information on vehicle parts containing lead, mercury, cadmium or hexavalent chromium; iii) declaration relating to the share of recycled content of plastic and certain materials; iv) official catalogue of spare parts for the type of vehicle concerned.

Extended producer responsibility

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.

Handing over of end-of-life vehicles

The owner of a vehicle that becomes an end-of-life vehicle, and any economic operator acting on their behalf, must hand over the vehicle without undue delay to an authorised treatment facility or collection point. All end-of-life vehicles for which no owner can be identified must be handed over for treatment to authorised treatment facilities.

Transfer of ownership

For the purpose of transferring ownership of a used vehicle within the Union, an economic operator will present to any natural or legal person interested in acquiring ownership of the vehicle concerned the documentation demonstrating that it is not an end­of­life vehicle, irrespective of the trading technique used, including by means of dedicated auctions for economic operators, distance contracts or online platforms.

When it comes to used vehicles within the Union, natural persons who are not economic operators will only be required to provide the aforementioned documentation when: (a) the vehicle is declared a total economic loss by an insurance company; (b) the sale is concluded entirely by means of an online platform, without physical handover of the vehicle between the seller and the buyer or any person acting on their behalf.

The competent authorities may require a vehicle owner, where there is doubt that a used vehicle is an end-of-life vehicle, to present documentation that the vehicle concerned is not an end-of-life vehicle.

Exporting used vehicles to third countries

Member States must designate one or more competent authorities for the export of used vehicles to third countries. 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).

Member States must establish inspection strategies designed to detect illegal activities in the collection, treatment and export of end‑of‑life vehicles, as well as their parts and components. They will cooperate bilaterally and multilaterally with one another in order to facilitate the prevention and detection of illegal treatment and export of end-of-life vehicles and to address the issue of missing vehicles.