Council and Parliament Strike Deal on End-of-Life Vehicles Regulation

The European Council presidency and Parliament representatives have reached a provisional agreement on a new regulation concerning circularity requirements for vehicle design and the management of end-of-life vehicles (ELVs). This regulation will replace existing directives, significantly expanding the scope and strengthening obligations for the automotive sector.
The new rules extend beyond passenger cars and light commercial vans to now include trucks, buses, motorcycles, and special purpose vehicles. A core element of the agreement is the introduction of mandatory recycled content targets for new vehicles, specifically for plastics:

• 15% required within 6 years.
• 25% required within 10 years.
• At least 20% of this recycled plastic must come from closed-loop recycling (recovered from ELVs).

Future targets for recycled steel, aluminum, magnesium, and critical raw materials will be established by the Commission following a feasibility study.

Extended Producer Responsibility (EPR)
The agreement significantly strengthens Extended Producer Responsibility (EPR), making manufacturers financially and organizationally responsible for the entire vehicle lifecycle, including free take-back and proper treatment. A cross-border EPR mechanism will ensure producers remain responsible regardless of the Member State where the vehicle reaches its end of life.

Combating illegal exports 
To address the issue of 3.5 million "missing vehicles" annually, the regulation introduces strict criteria to distinguish between used vehicles and ELVs. Vehicles meeting ELV criteria cannot be exported or sold as used. Additionally, a ban on the export of non-roadworthy used vehicles to non-OECD countries will apply 5 years after entry into force.

Next Steps
The provisional agreement must now be formally endorsed by the Council and Parliament. The regulation will start applying 2 years after its entry into force.
Further details on the agreement are available in the Council's press release.