EU Sets Green Wheels in Motion

In a landmark decision, the European Parliament’s Environment and Internal Market Committees have endorsed new regulations aimed at enhancing sustainability in the automotive sector. The proposals, adopted on July 7, 2025, seek to implement circular economy principles throughout the life cycle of vehicles, from design to disposal.

The proposed regulations focus on improving vehicle design to facilitate the removal and recycling of materials and components. They introduce binding targets for the use of recycled materials, with a stipulation that plastic in new vehicles must comprise at least 20% recycled content within six years, escalating to 25% within ten years if feasible. The rules further extend producer responsibility for end-of-life vehicle collection and treatment, mandating manufacturers to cover associated costs.

Significantly, the regulations aim to tighten export criteria for used vehicles, ensuring they aren’t classified as end-of-life. The proposals also call for increased inspections of facilities handling vehicle disposal to curb illegal activities. The initiative, which aligns with the European Green Deal, received broad support in the committee vote, marking a pivotal step towards a more sustainable automotive industry in the EU.