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

The European Parliament has backed draft measures, supported by 431 MEPs, to advance a circular economy in the automotive sector. This will be achieved by improving vehicle design, increasing the use of recycled materials, and strengthening car recycling.

The initiative aims to make vehicles easer to dismantle and recycle, set ambitious recycled-content targets, and assign manufacturers greater responsibility for collection and treatment. The Parliament’s position is in line with the European Green Deal and the EU's circular economy objectives, and negotiations will now follow the Council's earlier position.

Circular Economy in the Automotive Sector

The rules apply to most vehicles, with the exception of those used for special purposes, military purposes, emergency services, and historically significant vehicles. New vehicles must be designed so that parts can be easily removed for 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 set for recycled steel and aluminium.

Three years after implementation, manufacturers will be subject to extended producer responsibility, covering the cost of collecting and treating end-of-life vehicles, alongside an export ban for such vehicles. The co-rapporteurs emphasized that the Parliament’s aim to support resource security, environmental protection, and sustainability while ensuring realistic targets and fair competition.

These measures follow the Commission’s proposal in July 2023 and align with the European Green Deal and the circular economy action plan. With 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 in order to finalize the regulatory framework.

Further steps

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