December 12, 2025 11:38

With a provisional agreement reached this morning between the EU Council and the European Parliament, the approval of the regulation on circularity requirements in vehicle design and the management of end-of-life vehicles (ELV Regulation) is now within reach.

The new regulation will replace two existing directives and introduce binding measures to ensure that newly manufactured vehicles are designed to facilitate reuse, recycling and recovery at the end of their lifecycle.

The European Parliament approved the legislative framework last September, following the green light from EU environment ministers and incorporating amendments to the original proposal by the Commission. The provisional agreement now awaits formal endorsement by both the Council and Parliament. Once those steps are completed, the ELV Regulation will take effect two years after its official entry into force.

“This provisional agreement marks a significant step towards a circular economy for the European automotive sector,” said Magnus Heunicke (pictured), Denmark’s minister for the environment. “We have succeeded in agreeing on a robust framework that closes loopholes, ensures valuable materials are kept within the EU economy and curbs the export of polluting, non-roadworthy vehicles to third countries. The new regulation will drive forward innovation in sustainable design and create a stronger, cleaner market for materials and components.”

The new regulation significantly broadens the scope of previous legislation by extending treatment requirements (collection, depollution, mandatory part removal) to include heavy-duty vehicles (such as trucks), motorcycles and special purpose vehicles—both light and heavy-duty. The co-legislators also agreed to exempt small-volume manufacturers of heavy-duty special purpose vehicles.

The recycled plastic content targets for new vehicles have been revised downward: at least 15% within six years of the regulation’s entry into force, rising to 25% within 10 years—aligning with the Council’s initial stance and rolling back the Parliament’s proposal of 20% in the first phase. At least 20% of this recycled plastic must come from closed-loop recycling, i.e., recovered from end-of-life vehicles.

Requirements for the use of recycled content will also be introduced for other materials, including steel, aluminum, magnesium and critical raw materials, based on a feasibility study to be completed within one year of the regulation’s entry into force and implemented via a delegated act. The focus will remain on using post-consumer waste.

The agreement consolidates the principle of extended producer responsibility (EPR), making vehicle manufacturers financially and organizationally responsible for the entire vehicle lifecycle—from ecodesign to the free take-back and treatment of end-of-life vehicles. A cross-border EPR mechanism will be introduced to ensure uniform implementation across the EU.

The export of used vehicles no longer roadworthy will be banned five years after the regulation comes into force.

Despite broadly welcoming the ELV Regulation’s aims, PlasticsEurope, the association representing European plastics manufacturers, expressed concern over the level of ambition on recycling targets. “We had supported the Commission’s more ambitious and, in our view, realistic proposal of 25% initial target,” explained Virginia Janssens (pictured), managing director of PlasticsEurope. “A lower target risks weakening the market pull needed to scale high-quality recycling, stimulate investment and accelerate the transition towards a more circular and competitive plastics system in Europe.”
PlasticsEurope now calls on the European Parliament in plenary and national ministers to swiftly ratify the agreement, allowing the industry to plan ahead and contribute effectively to Europe’s circularity and competitiveness goals.

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