EU Parliament Backs Circular Economy Law for automotive sector: Recycled Plastics, Easy-to-Recycle Designs, and Export Bans Ahead

The European Parliament backed draft measures, supported by 431 MEPs, to advance a circular economy in the automotive sector by improving vehicle design, increasing recycled material use, and strengthening car recycling. New vehicles must allow easy removal of parts for reuse, recycling, or refurbishing, with targets of 20% recycled plastic within six years and 25% within ten years, alongside future recycled steel and aluminium goals. Manufacturers will bear responsibility for end-of-life vehicle collection and treatment, with an export ban for such vehicles. Negotiations will follow the Council’s earlier position, aligning with the European Green Deal and circular economy objectives.

Circular Economy in Automotive Sector

The European Parliament has backed draft measures, with 431 MEPs in favor, to advance a circular economy in the automotive sector by reducing environmental impacts from vehicle production and end-of-life treatment while promoting sustainable car recycling. The rules apply to most vehicles, excluding special-purpose, military, emergency service, and historically significant vehicles. New vehicles must be designed for easy removal of parts to enable reuse, recycling, remanufacturing, or refurbishing. MEPs propose that vehicles contain at least 20% recycled plastic within six years and 25% within ten years, with future targets for recycled steel and aluminium. Three years after implementation, manufacturers will have extended producer responsibility, covering the cost of collecting and treating end-of-life vehicles, alongside an export ban for such vehicles. Co-rapporteurs emphasized the Parliament’s aim to support resource security, environmental protection, and sustainability while ensuring realistic targets and fair competition. The measures follow the Commission’s July 2023 proposal, aligning with the European Green Deal and circular economy action plan. Including 14.8 million vehicles produced in 2023 and 6.5 million reaching end-of-life annually, interinstitutional negotiations are expected soon, following the Council’s earlier position, to finalize the regulatory framework.

Further steps

As Council already adopted its position earlier this summer, interinstitutional negotiations are expected to start without delay.