On July 13, 2023, the European Commission published a proposal for a regulation on End-of-Life Vehicles (ELVs). In accordance with the European Green Deal and the Action Plan for a Circular Economy, the ELV proposal builds on and replaces two existing directives: Directives 2000/53/EC and 2005/64/EC on End-of-Life Vehicles. The proposal will be considered by the European Parliament and the Council in the ordinary legislative procedure.
Revised background
The automotive manufacturing industry is one of the largest consumers of primary materials such as steel, aluminum, copper and plastics, but rarely uses recycled materials. The automotive industry in Europe accounts for 10 per cent of total plastics consumption, equivalent to 6 million tons per year. Although recycling rates for end-of-life vehicles are generally high, scrap metal is of low quality and only 19% of plastics are recycled. Electronics and composites are almost impossible to recycle.
This is an important untapped potential for both the environment and the economy.
In order to realize the effective management of end-of-life vehicles, the European Union issued the ELV directive (2000/53/EC) in 2000 to carry out the management of M1 and N1 vehicles; in 2005, the European Union once again issued the 3R directive (2005/64/EC), which further requires that all vehicles entering the EU market and with an annual output of more than 1,500 M1 and N1 vehicles are mandatorily subject to the 3R type certification.
With the introduction of relevant policies such as the EU Green Deal and the significant changes that have taken place in the automotive industry over the past 20 years, the ELV Directive needs to be systematically evaluated and revised to ensure that the ELV Directive can be adapted to the current policy and industrial development context.
In October 2020, the EU released a roadmap for the revision of the ELV Directive, which mainly introduces the next revision direction of the ELV Directive in terms of background, existing problems, objectives and revision ideas.
In March 2021, the European Commission completed its assessment of Directive 2000/53/EC on End-of-Life Vehicles, which identified various shortcomings of the ELV Directive.2021 In July 2021, the EU formally launched a call for public comments on the roadmap.
This proposed regulation is in line with the objectives of the European Green Deal and the New Circular Economy Action Plan to achieve a more sustainable and resilient automotive sector. It is closely linked to and supports the implementation of a number of important legislative initiatives, including the Critical Raw Materials Act, the Battery Regulation, the Waste Framework Directive, the WEEE Directive and the Eco-Design of Sustainable Products Regulation.
Key elements of the proposal
The primary objective of the revised legislation is to improve the circularity of vehicle design while strengthening the single market. The proposal sets out a series of requirements to ensure that new vehicles are designed in such a way as to facilitate recycling and reuse at the end of their life cycle.
Second, the proposal aims to increase the use of recycled materials in new cars. New vehicles should contain at least 25% recycled plastics. The proposal also allows the Commission to set targets for recycled steel, recycled metals and aluminum based on an appropriate assessment of their added value and feasibility.
The third objective is to increase the quantity, quality and value of materials reused and recovered from end-of-life vehicles. To this end, valuable parts and materials should be removed from end-of-life vehicles prior to shredding, and waste treatment should be improved to achieve high-quality recovery.
The fourth objective is to increase the collection of end-of-life vehicles in order to reduce the number of "missing vehicles". This will be achieved through new traceability and control measures.
The fifth objective is to ensure that the costs of managing end-of-life vehicles are equitably distributed among economic operators. Producers must ensure that vehicles are disposed of appropriately at the end of their life cycle.
Finally, the scope of the current legislation is gradually being extended to other vehicle categories, including trucks, buses and motorcycles.
