EuRIC and FEAD Urge Stronger Regulation for a Circular Automotive Sector

EuRIC and FEAD have called for a robust regulatory framework in the automotive sector to promote recycling and support the circular economy. The two organizations argue that the upcoming End-of-Life Vehicles Regulation (ELVR) represents a critical opportunity to introduce regulations that will prevent market distortions, improve transparency, and ensure recyclers can effectively recover valuable materials from vehicles.

Both EuRIC and FEAD emphasize that a truly circular automotive sector cannot thrive without stringent oversight and transparent practices. To this end, they urge policymakers to create independent bodies that can oversee the operations of producers and their Producer Responsibility Organisations (PROs) to avoid conflicts of interest and market manipulation. Furthermore, they argue that Extended Producer Responsibility (EPR) schemes, while important, are not a catch-all solution. They advocate for the inclusion of all players in the recycling value chain—from Authorised Treatment Facilities (ATFs) to mechanical recyclers who handle the shredding and post-shredding of materials.

In line with ensuring fair practices, EuRIC and FEAD also call on the EU to ensure that manufacturers are responsible for the full costs of vehicle recycling, including dismantling and treatment. Importantly, recyclers must retain ownership of the valuable parts and materials recovered from end-of-life vehicles (ELVs).

Driving Recycled Content and Investment in Circularity

In addition to these governance measures, EuRIC and FEAD stress the importance of setting specific targets for recycled content in vehicles to drive circularity forward. They support the Commission’s proposal to maintain the 25% recycled content target for plastics in ELVs, as this target is realistic and measurable. However, they caution against including pre-consumer waste or biobased plastics, which could undermine the effectiveness of the target.

Additionally, they propose introducing a mandatory recycled content target for steel, the most widely used material in automotive production. Such a measure would incentivize investment in the steel recycling industry and enhance the quality of recovered steel.

The organizations further highlight the recent EU Commission decision against car manufacturers and the European Automobile Manufacturers Association (ACEA) as evidence of the need for regulatory reform. These developments underscore the urgency of creating a fairer, more transparent regulatory framework to protect recyclers and promote circularity in the automotive sector.

EuRIC and FEAD remain firm in their belief that only through decisive EU action can the full potential of automotive recycling and circularity be realized, ensuring a sustainable future for Europe’s automotive industry.

Source: EuRIC