In July, the European Commission proposed a Regulation covering circularity requirements for vehicle design and the management of end-of-life vehicles. The Regulation aims to increase reusability, recyclability, recoverability, and the use of recycled content.
The proposal also establishes extended producer responsibility (EPR) for car manufacturers, which obliges them to cover the costs of collection, awareness raising, data gathering and reporting, and the end-of-life treatment of vehicles. Producers can fulfill these EPR obligations either individually or through a producer responsibility organisation.
Due to the changing nature of the mobility sector, which now has low-emission vehicles with light-weight materials, batteries, and electronic components, the European Commission highlighted a lack of circularity in design and production.
Insufficient separation of materials and use of recyclates, which lead to a high dependency on imported raw materials, will be tackled by the proposal.
The proposal sets minimum reusability, recyclability and recoverability rates. For example, 25% of the plastic used in new vehicles must be recycled. Minimum targets for recycled content of other materials such as steel will be established through implementing acts after the regulation enters into force.
Furthermore, car manufacturers are obliged to give detailed instructions on how to replace and remove parts and components. Like the new EU Battery Regulation, vehicles will also be required to have a vehicle circularity passport.
Following the Commission’s proposal, the Council and Parliament are now tasked with developing a negotiating position before entering trilogue negotiations.