In a landmark move to reshape how vehicles are built, used, and retired, the Council of the European Union has adopted its position on a sweeping vehicle recycling regulation.
The new end-of-life vehicles (ELV) regulation aims to turbocharge circular design, cut waste, and ramp up the use of recycled materials – especially plastics – across Europe’s auto industry.
With tougher standards and broader scope, the EU is steering toward a greener, more resource-efficient road ahead.
Paulina Hennig-Kloska, EU Minister for Climate and Environment, commented: “The ELV regulation is a game-changer for Europe.
“It cuts waste, curbs our reliance on critical raw materials from abroad, and drives our car industry into the heart of the circular economy.
“With the Council’s position, this legislation will not only boost the competitiveness of our car and recycling industries but also slash red tape to a minimum.”
Expanded scope: Trucks, bikes, and special vehicles now included
Marking a significant expansion of scope, the Council’s position now includes not just cars and vans but also heavy-duty trucks, motorcycles, three-wheelers, and quadricycles.
For all vehicle categories, manufacturers will be required to develop a comprehensive circularity strategy and clearly label removable parts.
Special-purpose vehicles, such as ambulances, fire trucks, and mobile cranes, are also now covered, further pushing the boundaries of circular vehicle design.
Boosting plastics circularity with clear targets
One of the most headline-grabbing elements of the regulation is the introduction of mandatory targets for recycled plastic content in new vehicles.
The phased approach sets the following goals:
15% recycled plastics by year 6 after enforcement
20% by year 8
25% by year 10
These targets aim to reduce dependence on virgin plastic and lower carbon emissions. The European Commission will retain the authority to issue temporary exemptions in cases of material shortages or significant price hikes.
Future targets for recycled steel, aluminium, and critical raw materials may also be introduced following feasibility studies.
Streamlined red tape for manufacturers
To minimise administrative burdens, the vehicle recycling regulation allows circularity strategies to be developed by vehicle category rather than individual model lines.
The digital “circularity vehicle passport,” a core feature of the proposal, will also be harmonised with other EU digital product passports to avoid duplication and improve data flow.
Tighter rules on used and exported vehicles
In a bid to close regulatory loopholes, the Council has strengthened rules around the sale and export of used vehicles.
Sellers must now provide documentation proving that a used vehicle is roadworthy and not considered an ELV – although this does not apply to private, non-digital sales.
The definition of ELVs has been clarified, with exemptions made for vehicles of historical interest or those restored for continued road use.
To tackle the problem of “missing vehicles” – those exported outside the EU with little traceability – customs procedures will be automated and risk-based.
The MOVE-HUB platform will help integrate national vehicle and customs data under the EU’s Single Window Environment for Customs.
Stronger rules for collection and recycling
The Council has also specified how ELVs must be processed, including storage protocols, removal of hazardous fluids and parts, and shredding practices.
Mixed shredding with other waste types will be restricted unless strict quality standards are met. Vehicles must be taken either to authorised treatment facilities (ATFs) or designated collection points.
Extended producer responsibility enhanced
Under the updated Extended Producer Responsibility (EPR) framework, vehicle producers will cover the full cost of collecting, transporting, and recycling ELVs – even for orphaned vehicles (where the producer no longer exists).
This obligation applies in proportion to each manufacturer’s market share and includes third-country producers placing vehicles on the EU market.
Notably, for trucks and motorbikes, EPR fees will now span the entire treatment chain, not just collection and disposal.
Industry welcomes phased targets, but urges broader material scope
The European Automobile Manufacturers’ Association (ACEA) cautiously welcomed the Council’s position, especially its efforts to reduce red tape and set achievable, phased targets for recycled plastic use.
However, ACEA criticised the exclusion of pre-consumer recyclates and bio-based materials from the recycled content definition.
They argue that to cut raw material use and emissions truly, a broader definition of sustainable materials is needed.
Sigrid de Vries, ACEA Director General, added: “The automotive industry is committed to delivering on the EU’s circular economy objectives.
“But to succeed, the new end-of-life vehicle recycling rules must be technically feasible and supported by a coherent framework.
“Transforming end-of-life-vehicle recycling will not happen overnight, and Europe needs a policy framework that also effectively safeguards the competitiveness of our industry to enable investments into vital R&D into state-of-the-art recycling technologies.”
Future directions
With the Council’s stance now established, the next step is negotiations with the European Parliament, which must finalise its position.
If successfully adopted, the new regulation will become a cornerstone of the EU’s circular economy agenda and a major step forward in transforming how Europe handles vehicle recycling.