Europe Moves to Revolutionize Vehicle Recycling with Ambitious New Rules

Old vehicles in Europe are on track to get a sustainable upgrade. In a significant step toward reshaping how vehicles are designed, used, and retired, the Council of the European Union has formally adopted its position on a groundbreaking vehicle recycling regulation.

The new End-of-Life Vehicles (ELV) regulation sets ambitious goals for reducing waste, increasing recycled content—especially plastics—and promoting circular design across the European automotive industry.

“A Game-Changer for Europe”

Paulina Hennig-Kloska, EU Minister for Climate and Environment, hailed the regulation as transformative:
“The ELV regulation is a game-changer. It cuts waste, curbs our reliance on critical raw materials from abroad, and drives our car industry into the heart of the circular economy. It will boost competitiveness and reduce unnecessary bureaucracy.”

Expanded Scope: More Vehicles, More Responsibility

For the first time, the regulation’s scope extends beyond just passenger cars and vans. It now includes heavy-duty trucks, motorcycles, three-wheelers, quadricycles, and special-purpose vehicles like ambulances, fire trucks, and mobile cranes.

Under the new rules, all vehicle types must have a comprehensive circularity strategy. Manufacturers will also be required to label removable parts clearly, making disassembly and recycling easier.

Plastic Recycling Targets Introduced

A central feature of the proposal is the introduction of binding targets for recycled plastic content in new vehicles:

• 15% by year 6 after the regulation comes into force

• 20% by year 8

• 25% by year 10

These targets are designed to reduce dependence on virgin plastic and cut carbon emissions. The European Commission retains the right to grant temporary exemptions if material shortages or price spikes occur. Future targets may be introduced for recycled steel, aluminum, and critical raw materials based on feasibility studies.

Streamlined Regulations and Digital Integration

To reduce administrative complexity, manufacturers will be allowed to develop recycling strategies by vehicle category, rather than for each individual model. The regulation also introduces a harmonized digital “circularity vehicle passport,” which will integrate with other EU digital product tracking systems.

Tightening Controls on Used Vehicle Exports

The regulation also aims to prevent used vehicles from being exported under unclear conditions. Sellers must now provide documentation proving that a vehicle is roadworthy and not considered an ELV—although this will not apply to private, non-digital sales.

A clearer definition of ELVs has been established, with exemptions for vintage and restored vehicles. To reduce the number of “missing vehicles” exported with little or no traceability, customs processes will be automated and risk-based. The MOVE-HUB digital platform will consolidate national vehicle and customs data under the EU’s unified customs environment.

Stricter Recycling and Collection Protocols

The regulation specifies how ELVs must be dismantled and processed. This includes requirements for storage, removal of hazardous materials, and controlled shredding practices. Vehicles must be processed at authorized treatment facilities or designated collection points. Mixed shredding with other waste types will be restricted unless high-quality standards are met.

Enhanced Producer Responsibility

Under the updated Extended Producer Responsibility (EPR) framework, manufacturers will bear the full cost of collecting, transporting, and recycling ELVs—including orphaned vehicles from defunct producers. The obligation is proportional to each manufacturer’s market share, including foreign producers selling in the EU. For trucks and motorcycles, the EPR now extends beyond collection to include the full treatment chain.

Industry Reaction: Support with Caution

The European Automobile Manufacturers’ Association (ACEA) cautiously welcomed the Council’s position, particularly the phased approach to plastic targets and efforts to streamline processes. However, ACEA criticized the regulation’s exclusion of pre-consumer recyclates and bio-based materials from the recycled content calculation.

Sigrid de Vries, ACEA Director General, noted:
“The automotive industry is committed to supporting the EU’s circular economy goals. But success depends on having technically feasible rules and a framework that supports innovation and competitiveness. Transforming vehicle recycling won’t happen overnight—Europe needs a regulatory environment that encourages investment in next-generation recycling technologies.”

Next Steps

With the Council’s position now in place, negotiations will begin with the European Parliament, which must finalize its stance. If adopted, the new regulation will become a central pillar of Europe’s green industrial strategy—and a milestone in the transition toward a truly circular vehicle economy.